HitBTC Implies Adamant Fees on Bitcoin Deposits

HitBTC Implies Adamant Fees on Bitcoin Deposits

Clients of the Europe-based cryptocurrency exchange HitBTC, which was launched back in 2014, should brace for fees. On December 22, the company announced that a fixed fee for all bitcoin deposits is going to be charged. However, earlier this platform was known for no fees for deposit and minimal network fee for withdrawal both for Bitcoin and the rest of the currencies. Now all the clients are supposed to pay a fee to deposit into HitBTC.

The company is justifying such a novelty by the high load on the network concerning Bitcoin transactions. However, the platform could have also stopped accepting newcomers or urged its clients to use any other cryptocurrency instead of Bitcoin.

Our top trading bots

Deposit Fees

Currently operated by Hit Techs Limited in London, HitBTC has a daily volume of over $500 million just in December 2017. However, the platform faced a lot of pressure because of the high number of bitcoin deposit transactions. To solve this problem, HitBTC has decided to deduct from any amount of the incoming operation a fee at the rate of 0.0003 BTC. Every client should take into account that no matter how low the deposit is, the fee will remain the same. So if your deposit is smaller or equal to the fee, the whole amount will be used to cover the fee and your money will not be refunded.

“We are announcing that starting from 22/12/2017 a fixed fee for all Bitcoin deposits is to be charged,” HitBTC notified its clients. “This measure is going to be introduced in order to strengthen all Bitcoin processes on HitBTC and provide stability in functioning of the major cryptocurrency.”

As News.Bitcoin.com reports, currently, high fees are a severe problem for all businesses that deal with Bitcoin. But those, who have the higher volume of transactions, are suffering the most. Recently, the US-based global bitcoin payment service provider BitPay explained that BTC invoice payments below $100 are made uneconomical and unbusinesslike due to high fees. The provider also banned such transactions before hurriedly re-authorizing them under pressure from the Bitcoin brethren.

Tough Times

“Bitcoin network has been experiencing difficult times in the last weeks. Due to heavily increased demand, a large number of transactions passes through BTC network. It leads to a significant amount of transactions waiting in the mempool, longer processing time and unprecedented fees,” such an announcement was published on the HitBTC website a few days before Christmas.

This indicates that the platform explains the decision to impose fees on its clients by the tough times that the bitcoin has been living through within the past weeks. Interestingly, on December 22 Bitcoin experienced a devastating crash to $11,885, just a week after bitcoin-based futures were introduced for trading on the CME Group Inc. (Chicago Mercantile Exchange & Chicago Board of Trade). The Bitcoin started losing in price after getting tied to this futures giant.

The company defends its position also by claiming that fees on Bitcoin deposits would strengthen all the transactions with this cryptocurrency. Moreover, according to HitBTC, it is going to provide stability in the way bitcoin is functioning. “It would help facilitate processing of incoming transactions and maintain the liquidity and security of Bitcoin on HitBTC at a level we deem worthy of our traders,” claimed HitBTC.

However, after the December 22 drop, the crypto market on the whole and Bitcoin, in particular, have demonstrated positive signs of recovery. Despite the fact that the total capitalization of the market and the price of every cryptocurrency has not come back to the previous rate, there is still some hope that “difficult times” will pass by and the fees at HitBTC will be removed.

US Bitcoin ETF favors Australian approval, but Aussies need to go further
On Oct. 19, 2021, the ProShares Bitcoin Strategy ETF (BITO) launched on the New York Stock Exchange. On its first day, the exchange-traded fund (ETF) saw...
Spanish regulator raises alarm on Binance promo by soccer star Iniesta
A major financial regulator in Spain has put out a warning regarding soccer star Andrés Iniesta for promoting major cryptocurrency exchange Binance.Iniesta,...
Enjin wants to decentralize its metaverse with new $100M fund
Blockchain gaming platform Enjin is establishing a new fund to support the development of the metaverse ecosystem and make it more decentralized.Enjin,...
Top 5 cryptocurrencies to watch this week: BTC, DOT, UNI, LINK, XMR
Bitcoin (BTC) has continued to trade near the $55,000 level. The sharp rally in Bitcoin has pushed its market dominance from 40.70% on Sep. 12 to about...
Arcane Research predicts 700 million Lightning Network users by 2030
The research unit of Arcane Crypto predicts the Lightning Network will go parabolic as adoption of the Bitcoin layer-two payment protocol ramps up over...
Big investors pivoting from Bitcoin to Ether futures: JPMorgan
American multinational investment bank JPMorgan has revealed that institutional investors are starting to shy away from Bitcoin futures in favor of Ether...
New NY Gov. taps former Obama official to head state's financial regulator
Kathy Hochul, the governor of New York who has been in office for only a week since the departure of Andrew Cuomo, has nominated Adrienne Harris to lead...
Bitcoin rejects $51K after Michael Saylor reveals new BTC purchase — What’s next?
Bitcoin (BTC) is currently facing a crucial resistance to break through after a massive rally of 70% since the recent low in July at $28,000. This resistance...
USDC to consolidate reserves into cash and US treasuries
Coinbase president and COO, Emilie Choi, has announced that the reserves backing the stablecoin USD Coin (USDC) will be consolidated into cash and U.S....
Analysis-Decentralised finance: Latest front in crypto's hacking problem
By Tom WilsonLONDON (Reuters) - For most of the 13-year life of cryptocurrencies, exchanges were the epicentre for cyberheists. Now, a bigger hacking risk...
GoldenTree Asset Management is reportedly investing in Bitcoin
New York-based asset management firm GoldenTree has reportedly added Bitcoin to its balance sheet, though the amount of this supposed investment remains...
Fidelity to hire more crypto hands amid growing institutional interest
Fidelity Digital, the crypto arm of the global asset management giant Fidelity Investments Inc., will reportedly hire more people for its expanding cryptocurrency...
Altcoins just repeated a move that could launch them 27,000% higher in 2021
Altcoins have delivered huge gains this year, but if they repeat their 2017 moves, hodlers may be looking at an insane 27,000% moonshot.According to popular...
Indian Central Bank to Stop Dealing With Crypto-Friendly Clients
The governments all over the world keep a hardline stance on cryptocurrencies, and now it’s the turn of India to officially announce its clampdown on...
South Korean Central Bank: 20% of Adults Eager to Buy Cryptos
The recent survey, conducted by the central bank of South Korea, has shown that over 20% of majors are enthusiastic about piling into cyber assets. Such...