<p>Exchanges set their own fees because they are the custodian of your funds. They could charge you more or less than the network actually costs. Some exchanges charge a higher fee in order to ensure your transaction has priority over others that are trying to send coins at the same time. Some exchanges may charge you more than the network fee and pocket the rest. This behavior generally drives up the cost to transact on the network.</p>

<p>If you decide to become the custodian of your own funds you will have more control over the fee that you are willing to pay. With a little bit of patience and monitoring of the mempool you will find that it is rather simple to get a transaction confirmed with a fee at a fraction of what exchanges generally charge. </p>

<p>Also, FYI, because you mentioned Coinbase, you can actually send crypto on-chain transactions for free through Coinbase Pro (they pay for it).</p>

CC BY-SA 4.0
2019-06-03T20:36:45.290Z
2019-06-03T20:36:45.290Z
trustnone
<p>Coinbase is a custodial bitcoin wallet so, I think you can't set a custom fee for a transaction.</p>

<p>Bitcoin-core GUI using estimateSmartFee function to get estimate transaction fee. </p>

<p>estimateSmartFee getting the estimated fee sent with each transaction in the mempool.</p>

CC BY-SA 3.0
2018-01-08T17:00:41.890Z
Regarding, "I think you can't set a custom fee for a transaction" so how do they come up with their transaction fee?  I imagine if they set it too high, folks won't want to use their service and won't make any money.
Dave
CC BY-SA 3.0
2018-01-08T23:08:51.837Z
I don't know how they're working, it's better to call them in that special case.
Tailer
CC BY-SA 3.0
2018-01-09T15:10:43.270Z
Call them?? Lol!  I think if they had a phone number that might have made it easier for this guy -- https://www.reddit.com/r/CryptoCurrency/comments/7p0rmh/i_still_have_not_received_my_27000_wire_reversal/
Dave
CC BY-SA 3.0
2018-01-08T16:08:28.537Z
2018-01-08T16:08:28.537Z
Tailer
<p>I was reading on the Bitcoin wiki (<a href="https://en.bitcoin.it/wiki/Transaction_fees" rel="nofollow noreferrer">https://en.bitcoin.it/wiki/Transaction_fees</a>
) that a user can set his own fees when conducting a bitcoin transaction.  Like many, I have a Coinbase account, but I don't see anywhere in there where I can set the transaction fee.  Is this something the exchanges come up with?  How do they figure out what transaction fee to propose so that the transaction will be accepted by miners?</p>

<transactions><transaction-fees><exchanges><exchange-fees>
How do exchanges set their transaction fees?
Dave
# How do exchanges set their transaction fees?

(Asked by: username_0 on 2018-01-08)

I was reading on the Bitcoin wiki (<https://en.bitcoin.it/wiki/Transaction_fees>
) that a user can set his own fees when conducting a bitcoin transaction. Like many, I have a Coinbase account, but I don't see anywhere in there where I can set the transaction fee. Is this something the exchanges come up with? How do they figure out what transaction fee to propose so that the transaction will be accepted by miners?

**Tags:** transactions, transaction-fees, exchanges, exchange-fees


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## 2 answers

### Answer by username_1 on 2019-06-03. Score: 1

Exchanges set their own fees because they are the custodian of your funds. They could charge you more or less than the network actually costs. Some exchanges charge a higher fee in order to ensure your transaction has priority over others that are trying to send coins at the same time. Some exchanges may charge you more than the network fee and pocket the rest. This behavior generally drives up the cost to transact on the network.

If you decide to become the custodian of your own funds you will have more control over the fee that you are willing to pay. With a little bit of patience and monitoring of the mempool you will find that it is rather simple to get a transaction confirmed with a fee at a fraction of what exchanges generally charge.

Also, FYI, because you mentioned Coinbase, you can actually send crypto on-chain transactions for free through Coinbase Pro (they pay for it).


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### Answer by username_2 on 2018-01-08. Score: 0

Coinbase is a custodial bitcoin wallet so, I think you can't set a custom fee for a transaction.

Bitcoin-core GUI using estimateSmartFee function to get estimate transaction fee.

estimateSmartFee getting the estimated fee sent with each transaction in the mempool.

> **Comments:**
> **username_0**: Regarding, "I think you can't set a custom fee for a transaction" so how do they come up with their transaction fee?  I imagine if they set it too high, folks won't want to use their service and won't make any money.  
> **username_2**: I don't know how they're working, it's better to call them in that special case.  
> **username_0**: Call them?? Lol!  I think if they had a phone number that might have made it easier for this guy -- https://www.reddit.com/r/CryptoCurrency/comments/7p0rmh/i_still_have_not_received_my_27000_wire_reversal/  

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