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:
I had to pay 7% fees for withdrawal on bitbns last night, p2p is so absurd right now!!
— Chowkidar Nitesh Biyani (@niteshbi) May 15, 2019
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.
Not able to deposit on @koinexindia despite offering 5% .
— ??Abhimanyu (@hindmerejind) May 15, 2019
Hi @15suraj_wala, we understand your concern, please note that our team is in the process of completing the maintenance activity, we will notify our users accordingly.
— Koinex (@koinexindia) May 14, 2019
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!