We are reducing Ethereum withdrawal fees by 80%. Explore how this change impacts the new ETH fees, why it matters, and the benefits for users.
You asked, we listened!
We are proud to announce a reduction in the cost of withdrawing your Ethereum (ETH) from Ndax to an external address. This initiative is part of our continuous effort to empower Canadians throughout their crypto journey. This blog will highlight the cost reduction, why it matters, our networks available and the user impact.
At Ndax, we’re committed to offering the best experience for our users, and that includes making transactions more affordable and efficient. We’re excited to announce a significant reduction in our Ethereum withdrawal fees, a stunning 80% drop from 0.0099 ETH to just 0.00199 ETH per withdrawal.
This reduction in fees means more of your Ethereum stays in your wallet and less is spent on transaction fees. Whether you’re withdrawing ETH for trading, DeFi participation, or long-term holding, you’ll benefit from this major update.
Reducing withdrawal fees can have a substantial impact on your overall cost when managing your crypto. For example, if you previously needed to withdraw 1 ETH via ERC-20, the fee would have been 0.0099 ETH, leaving you with only 0.9901 ETH after the withdrawal. With the new reduced fee of 0.00199 ETH, the same withdrawal now leaves you with 0.99801 ETH, an extra 0.00791 ETH in your pocket.
This reduction also significantly lowers the barrier for users who make frequent or smaller withdrawals. Whether you're moving ETH to different wallets, exchanges, or platforms, you’ll now have more flexibility to carry out those transactions without worrying about high fees eating into your balance.
Lower Transaction Costs: The main benefit is, of course, the reduced cost. An 80% reduction means that you can withdraw more ETH for the same amount, which is especially beneficial for those with smaller balances or those who make regular withdrawals.
More Flexibility: With the new, lower fixed fee, you can be more active with your Ethereum holdings, whether you're trading, staking, or transferring between wallets. The reduced fees make it more practical to interact with Ethereum without constantly worrying about high costs.
Improved User Experience: By lowering costs, we’re enhancing the overall user experience, making it easier and more economical to engage with Ethereum. Whether you’re a beginner or a seasoned crypto user, this change makes managing your assets smoother and more cost-efficient.
When withdrawing Ethereum-based tokens from Ndax, users have two primary options for the withdrawal network: ERC20 and BEP20. Both are standards for creating and transferring tokens, but they differ in terms of the blockchain they operate on and how they impact transaction fees. Let’s break down these two withdrawal networks to help you understand how each works and which one might be best for your needs.
ERC20 – The Ethereum Standard
ERC20 is the original token standard for Ethereum. Tokens that follow the ERC20 standard are built on the Ethereum blockchain, which is known for its robust security, decentralized nature, and widespread adoption in the crypto world.
When you withdraw tokens via the ERC20 network on Ndax, the transaction is processed through the Ethereum blockchain. This means it will be subject to Ethereum’s network fees. It's important to note with our recent update Ndax now charges a withdrawal fee of 0.00199 ETH for ERC20 withdrawals, which helps cover the cost of processing the transaction on the Ethereum network.
ERC20 is widely supported across exchanges, wallets, and decentralized applications (dApps), making it a reliable option for most users. If you prioritize compatibility with the broader Ethereum ecosystem, ERC20 is a solid choice.
BEP20 – Binance Smart Chain’s Token Standard
On the other hand, BEP20 is a token standard used on the Binance Smart Chain (BSC), which is an alternative blockchain to Ethereum. BSC was designed to provide faster and cheaper transactions compared to Ethereum by using a more efficient consensus mechanism (Proof of Staked Authority, or PoSA).
Withdrawals via the BEP20 network on Ndax are processed on the Binance Smart Chain, and they typically come with lower transaction fees compared to Ethereum’s ERC20. This is because BSC is optimized for faster, low-cost transactions, making it an attractive option for users who want to avoid higher fees.
However, it’s important to note that while BEP20 cheaper transaction fees, it is not as widely adopted across all wallets and platforms as ERC20. Therefore, you should ensure that the wallet or platform you're sending to supports the BEP20 standard before initiating a withdrawal.
Ndax charges a withdrawal fee of 0.000499 ETH for BEP20 withdrawals, which helps cover the cost of processing the transaction on the Binance Smart Chain.
Lower Ethereum withdrawal fees can significantly improve the user experience on our platform, especially as the crypto space becomes more competitive and user focused. Whether you're a casual trader, a small holder or an institutional investor, lower fees translate into more efficient and cost-effective transactions. Here’s how different types of users benefit from these reduced fees:
Occasional User
For occasional user who may not make large or frequent transactions, high withdrawal fees can be a deterrent, especially when withdrawing smaller amounts. Previously, they might have felt that the cost of withdrawing their funds wasn’t worth it, or they may have been reluctant to move their crypto assets due to the expense. With lower fees, occasional user now enjoys greater flexibility and can withdraw funds more freely without worrying about excessive costs cutting into their potential profits.
Casual User
Small holders, who might only be trading or investing modest amounts in Ethereum, often face the brunt of high withdrawal fees. These users can find it challenging to withdraw small amounts without losing a significant portion of their holdings to fees. By lowering withdrawal fees, we ensure that small holders can access their funds more easily and with less concern about losing a disproportionate amount of their assets to transaction costs.
Frequent Transactions and Micro-Transactions
In crypto, frequent or small-value transactions can be hindered by high withdrawal fees, especially when the transaction value is low. Lower fees now make it easier for users to withdraw Ethereum to pay for goods and services without excessive costs. This is particularly beneficial in decentralized finance (DeFi), where small, frequent transactions are common, enabling more flexibility and opportunities for users to engage with the crypto ecosystem.
Institutional Client
Institutional Client, who handle large volumes of crypto assets, are highly sensitive to transaction fees. High Ethereum withdrawal fees, especially during network congestion, could quickly add up, making large withdrawals expensive. By reducing these fees, we offer a more cost-effective solution for managing portfolios, helping minimize transaction costs and maintain competitive margins. This fee reduction also enhances liquidity, allowing institutions to respond swiftly to market opportunities.
At Ndax, our user-first mentality drives everything we do. By reducing Ethereum withdrawal fees by 80%, from 0.0099 ETH to just 0.00199 ETH. We're making crypto transactions more accessible and cost-effective for all users, whether they’re casual traders, institutional investors, or small holders. This fee reduction is a direct response to user feedback and aligns with our mission to provide a seamless, efficient, and customer-friendly experience.
Our goal is to empower users to participate in the crypto ecosystem without the burden of excessive fees. Whether you're experimenting with small amounts, making large strategic withdrawals, or conducting frequent transactions, lower fees help eliminate financial barriers and create a more inclusive platform. At Ndax, we're committed to delivering the best experience, making crypto transactions more affordable and efficient for everyone.
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Disclaimer: This article is not intended to provide investment, legal, accounting, tax or any other advice and should not be relied on in that or any other regard. The information contained herein is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of cryptocurrencies or otherwise.