Withdrawal fee (network fee)

When you withdraw from a centralised exchange, the platform builds and pays for an on-chain transaction on your behalf and recovers the cost through a withdrawal fee. It is usually a flat amount per asset and network, shown before you confirm, and separate from trading fees. Many exchanges batch withdrawals together, so their real cost per user can be lower than the fee charged.

The network you choose makes a large difference. Withdrawing USDT on Ethereum can cost several dollars, while the same amount on Tron, a layer 2 or another cheap chain may cost cents. Exchanges adjust fees as on-chain costs change, and some offer free withdrawals on certain networks or for higher-tier customers.

Fixed fees make small withdrawals expensive in percentage terms, and minimum withdrawal amounts can trap small balances. The most costly mistake, though, is choosing a network the destination does not support, which can delay or lose funds. Fees charged by the exchange are not the same as the transaction fee you would pay yourself from a self-custodial wallet.