Does Exodus have fees to send or receive?
The use of any digital asset network ( Bitcoin, Ethereum, etc. ) requires a small fee to send a transaction. This fee does not go to Exodus, but is paid to the network to ensure transactions are delivered reliably and quickly.
Digital asset networks require a small fee to make it hard for any one user to flood the network with junk transactions causing others to have to wait. If sending transactions was free one bad user could damage the network speed and reliability for everyone. Each small fees users pay to send transactions goes back to the network to help incentivize a secure network.
Popular networks are crowded and thus more expensive. Today Bitcoin is the most popular network and Bitcoin fees are the highest of any digital asset supported by Exodus.
Bitcoin fees are calculated on the amount of traffic the network currently has and the size in bytes of the transaction. Keep in mind these fees are not based on the amount of Bitcoin transacted - This is a common misconception carried over from the traditional fiat banking industry.
A transaction's size is dictated by the number of inputs and outputs. The more inputs you have, the more expensive the transaction.
One of the easiest ways to think about this is with change and dollars. One dollar is the same as 100 pennies, however, it requires more work to count 100 pennies and give it to someone for payment than it does to hand over a one dollar bill.
This is similar to the bitcoin network. Let’s look at an example:
Alice receives 0.01 bitcoins every day for 100 days. Bob receives a payment of 1 bitcoin once. Both Alice and Bob now have a 1 bitcoin balance.
If Alice and Bob now try to send 1 bitcoin Alice will have a much larger fee than Bob. This is because the bitcoin network has to do a lot more work for Alice to bundle all of her small “change inputs” together vs. Bob who just has 1 input.
This is similar to a person who tries to spend 100 pennies vs. a one dollar bill. Both have the same value but the 100 pennies is much harder and it takes a lot longer to count up and make the transaction.