Does Exodus have transaction fees to send or receive?
Almost all blockchain transactions incur network or miner fees (with a few exceptions). Other than these transaction fees, 100% of which go to the network, Exodus does not charge fees for sending. You will never pay transaction fees when receiving in Exodus.
Unlike exchange platforms, Exodus does not keep any part of the transaction fees charged for withdrawing Bitcoin (BTC), Ethereum (ETH), or any other cryptocurrency.
In this article:
- Tutorial video: Network fees explained: Bitcoin transaction fees, Ethereum gas fees
- What are transaction fees?
- What is the "Max Network Fee"?
- How do I set a custom fee?
Tutorial video: Network fees explained: Bitcoin transaction fees, Ethereum gas fees
What are transaction fees?
The use of any blockchain network (Bitcoin, Ethereum, etc.) requires a small fee to send a transaction. This is because there are people (called miners) who spend resources like computing power and electricity to help process and secure all transactions on the network. All transaction fees are paid in full to the network (miners) to ensure transactions are delivered reliably and quickly.
Popular networks are crowded and thus more expensive. Bitcoin and Ethereum are both popular networks, and they have the highest fees of any assets supported by Exodus.
Another reason blockchain networks charge fees are to make it harder for someone to flood the network with junk transactions. If sending transactions were free, one bad actor could damage the network speed and reliability for everyone by spamming the network with many tiny transactions (also called dust transactions). Fees, in this respect, are one of the many safeguards created by the Bitcoin Protocol (and used by most other blockchains) to ensure its security.
Bitcoin fees are typically measured in Satoshis (Bitcoin's smallest unit) per byte or Sats/b. The more information included (bytes), the more Satoshis (bits of BTC) you will have to pay. The amount of information in a transaction does not depend on the amount sent but on the number of previously received deposits (i.e. inputs). A transaction's size is dictated by the number of inputs and outputs. The more inputs you have, the more expensive the transaction.
Transaction fee - example
One of the easiest ways to think about this is with change and dollars. One dollar is the same as 100 pennies, however, it requires more work to count 100 pennies and give it to someone for payment than it does to hand over a one-dollar bill.
Let’s look at an example using Bitcoin (BTC):
Alice receives 0.01 Bitcoin every day for 100 days. Bob receives a payment of 1 BTC once. Both Alice and Bob now have a 1 Bitcoin balance.
If Alice and Bob now try to send 1 Bitcoin, Alice will have to pay a much larger fee than Bob. This is because the Bitcoin network has to process a lot more data with Alice's transaction bundling all of her small “inputs” together vs. Bob who just has 1 input.
This is similar to a person who tries to spend 100 pennies vs. a one-dollar bill. Both have the same value, but the 100 pennies are much harder to count (and heavier), and it takes more effort to process them and make the transaction.
You can always see current network fees for your transaction before you send your crypto:
This only affects BTC and other UTXO-based currencies like BCH, BSV, BTG, LTC, DGB, etc.
Ethereum (ETH) and other non-UTXO-based assets have a different fee calculation system, based on the type of transaction being sent. For example, you will pay a larger fee (Gas) if sending to a 'smart contract' address, or if sending an ERC20 (Ethereum based) token than if you send ETH.
Something important to keep in mind is that Exodus will calculate and set fees automatically.
What is the "Max Network Fee"?
For some assets, such as Ethereum (ETH), ERC20 tokens, and Hedera Hashgraph (HBAR), it is not technically possible to calculate the exact amount of the transaction fee, which will be used in the transaction. For this reason, in order to be on the safe side, the maximum fee that a transaction might cost is shown instead. In most cases, the actual network fee that you pay will be less than the amount you see in the Max Network Fee field.
So the Max Network Fee, when you are sending a transaction, is the most that you might pay for the transaction. Only the actual transaction fee will be deducted from your wallet.
For example, this is what you will see when sending HBAR:
After the transaction has been sent, you can click or tap on the transaction ID to find out exactly how much the transaction was.
How do I set a custom fee?
Paying high fees is a thing of the past now, as with all the new versions of Exodus, you can now set custom fees for your Bitcoin and Ethereum transactions!
The following articles will guide you through the instructions on how to set custom fees: