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Crypto Bull Run Brings Along Rising Deposit and Withdrawal Fees for Indian Traders

With starting of bull run the costs of depositing and withdrawing funds on Indian exchanges have also started to increase. Due to P2P withdrawal and deposit mechanism deployed by many exchanges the fees are moving towards the higher side due to changing market dynamics.

May 16, 2019 11:36
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It looks like the bull-run of cryptocurrency market has also come with some riders for Indian crypto traders. While it’s true that many among us are now making more money than earlier, the other side of the coin is that we’re also ending up paying more on our deposits and withdrawals than we were paying during the bear phase. The cost of depositing and withdrawing money from Indian cryptocurrency exchanges has increased as people are charging more for ‘Tips’ in P2P transactions of deposit and withdrawal.

That’s right. Many users of Koinex and BitBns are complaining on Twitter that they’re being charged as much as 5% for deposits and withdrawals. One of the users even said that he had to pay as much as 7% for withdrawal of his funds at BitBns:

Similar incidents were reported by Koinex users too. In fact, some of them even reported that they couldn’t deposit/withdraw their money despite the fees, as either they could not find a matching peer for their transaction, or their transaction didn’t work out as planned due to maintenance activity at Koinex.

Withdrawals and deposits on Indian cryptocurrency exchanges rely heavily on Peer-to-Peer mechanism of fund movement, and in this system the tips required to perform any transaction vary according to the market dynamics of supply and demand. If users are to be believed, these tips have recently shot slightly towards the higher side. Though the number of such complaints is not high as of now, it’s clear that P2P-based withdrawal and deposit mechanism is costing people more than usual during this bull run. Now let’s just hope that this doesn’t spiral out of control!

Technology and business were my core interests, so it wasn't surprising that I got interested in cryptocurrencies, which operate at the intersection of both these things. Now I live my passion by trading cryptocurrencies and covering Cryptocurrency news. You can connect with me on Facebook to learn more about me. :)

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