Does Exodus have fees to send or receive?
Why have fees?
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 were free, one bad user could damage the network speed and reliability for everyone. Each small fee 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 has the highest fees 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.
Let’s look at an example using Bitcoin:
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 are much harder to count, and it takes a lot longer to count them and make the transaction.
How does Exodus calculate fees?
Exodus tracks changes in the Bitcoin network and adjusts the fees accordingly using the dynamic pricing model from: https://bitcoinfees.earn.com/ . These network fees are 100% paid to the bitcoin network to ensure Exodus transactions are fast and delivered promptly. Exodus does not keep any portion of this fee.
We have done extensive testing over the years to make sure bitcoin transactions are delivered the fastest way possible. Because Exodus prioritizes speed and reliability over low fees, Exodus will always dynamically set the best price to deliver your transactions as fast as possible.
This may be worth checking out to learn more about Bitcoin fees: https://support.exodus.io/article/71-why-are-the-bitcoin-network-fees-so-high
Ethereum has a different fee calculation, based on the type of transaction being sent: You will pay a larger fee if sending to a 'smart contract' address, or if sending an ERC20 (Ethereum based) token. More info on Ethereum and ERC20 token transaction fees can be found here: http://support.exodus.io/article/67-how-do-i-send-or-exchange-an-ethereum-powered-asset
Most users of Exodus are 100% new to blockchain assets and are not technically savvy. As a result, when we begin to give the user a choice on what fee to set, they ultimately will choose a lower fee without the understanding this could cause the transaction's confirmation to be delayed for hours, sometimes days.
If being able to manually set a low fee is important to you, Exodus is not a good software choice and we encourage you to use other bitcoin wallets. The good news is there are a lot of highly technical BTC wallets much better than Exodus in this regard. Electrum is awesome for highly technical options like this. With the current market reach of Exodus, and the nature of our community's user-base, this will not be a focus for our wallet anytime soon.
I receive BTC mining payouts. Why are my fees so high?
If you receive small payments over time from a mining contract, you are like Alice in the above example section: collecting pennies, essentially. When you send these dozens of small inputs, the Bitcoin network requires these inputs be smushed together and batched into one payment, which takes up data on the blockchain. The fees on these transactions are far higher than those for sending a more reasonable, 1-3 input transaction.
We have seen fees as high as $50 - $200 for mining contract payouts that have gone on for months/years. In a few cases, the fee required to send your Bitcoin is even higher than your Bitcoin balance. Because of this, we advise users to either receive larger payouts less frequently or receive their payouts in an asset like Dash or Ethereum, which do not use the same UTXO based system as Bitcoin or Litecoin, and thus will not have exorbitant mining fees because of it.