Sending crypto from a custodial wallet vs Sending crypto from exchange? Which one is more expensive from your experience?

[Trush Jodie]

Some people hold their crypto on custodial wallets while some hold their crypto on Exchanges. Sending crypto either from custodial wallet or through crypto exchange involves some fees.

Which one is more expensive to send crypto between Exchange and Custodial wallets from your own experience?

 

[gwolf666]

From my experience, sending crypto from an exchange usually ends up being more expensive than transferring from a custodial wallet. Most exchanges charge network fees on top of their own service or withdrawal fees, which can fluctuate depending on blockchain congestion. For example, when transferring Bitcoin or Ethereum from major exchanges like Binance or Coinbase, the total cost can sometimes be noticeably higher compared to using a private wallet like Trust Wallet or MetaMask. Custodial wallets, on the other hand, typically only charge the network fee, and users often have more control over how much they want to spend by adjusting the gas price or transaction speed. However, exchanges can occasionally offer lower or even free internal transfers if both sender and receiver are on the same platform. So overall, custodial wallets tend to be more cost-effective for most transactions, but the actual difference depends on the network being used and the exchange’s specific fee structure.

 

[Webster]

From my experience, sending crypto from an exchange usually ends up being more expensive than transferring from a custodial wallet. Most exchanges charge network fees on top of their own service or withdrawal fees, which can fluctuate depending on blockchain congestion. For example, when transferring Bitcoin or Ethereum from major exchanges like Binance or Coinbase, the total cost can sometimes be noticeably higher compared to using a private wallet like Trust Wallet or MetaMask. Custodial wallets, on the other hand, typically only charge the network fee, and users often have more control over how much they want to spend by adjusting the gas price or transaction speed. However, exchanges can occasionally offer lower or even free internal transfers if both sender and receiver are on the same platform. So overall, custodial wallets tend to be more cost-effective for most transactions, but the actual difference depends on the network being used and the exchange’s specific fee structure.

The flip side of that, Wolf, at least w/an exchange (you mentioned two of them above; others include Kraken, Crypto.com, Robinhood, eToro, etc.) if something happens you do have recourse with them over it. If something happens if a wallet you're potentially SoL.

 

[Augusta]

Withdrawal Fees: Charged when transferring crypto from an exchange to an external wallet. This can be a fixed amount or based on network fees.