Sending Bitcoin (BTC) – Transaction Fees Over 15% Higher Compared to Litecoin (LTC)

Thursday 31 December 2020, 3:00 PM AEST - 3 months ago

Apart from its volatility, one other known problem when using cryptocurrency for payments is that the blockchain network fees can vary largely from day to day.

To help diagnose the fees we transferred $100 AUD to BTC, LTC, ETH and USDC and sent them to an external wallet to see the fees charged by the exchange platform and the blockchain network fees. Note: all fees shown as at 31/12/2020 and sent using CoinJar to an external wallet on chain.

AUD to BTC to External BTC Address

  1. $100 AUD (CoinJar cash account)
  2. Converted to 0.00262679 BTC (A$98.96). 1% conversion fee.
  3. Sent to an external BTC address
  4. Received 0.00220921 BTC (A$82.90)
  5. Network fee: 0.00041758 BTC (A$15.67)
  6. Total fees: A$17.10 (17.1%)

AUD to LTC to to External LTC Address

  1. $100 AUD (CoinJar cash account)
  2. Converted to 0.6 LTC ($98.96). 1% conversion fee.
  3. Sent to an external LTC address
  4. Received 0.6 LTC (A$98.96)
  5. Network fee 0.00000373 LTC (A$0.00062)
  6. Total fees: A$1.04 (1.04%)

AUD to ETH to to External ETH Address

  1. $100 AUD (CoinJar cash account)
  2. Converted to 0.1 ETH (A$98.96). 1% conversion fee.
  3. Sent to an external ETH address.
  4. Received 0.09131 ETH (A$89.53).
  5. Network fee: 0.00869 ETH (A$9.43)
  6. Total fees: A$10.47 (10.47%)

AUD to USDC to External USDC Address

  1. $100 AUD (CoinJar cash account)
  2. Converted to 75.63 USDC (A$98.96). 1% conversion fee.
  3. Sent to an external USDC address.
  4. Received 70 USDC (A$92.00)
  5. Network fee: 4.928023 USDC (A$6.42)
  6. Total fees: A$8.00 (8%)

Conclusion

Here is a comparison of network fees for each crypto we tested (when sending approximately A$100 worth).

CoinApproximate Network Fee
BTC15.83%
LTC0.0001%
ETH9.53%
USDC6.49%
Comparison of network fees for cryptocurrencies

Litecoin (LTC) has by far the cheapest fees (almost non-existent) compared to BTC, ETH and USDC. As we know, the BTC network fee doesn’t vary based on the amount, but rather on the network conditions at the time of transfer. Therefore, sending larger amounts would make the fees more easily acceptable.

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