Whether you use Bittrex, Coinjar or any other exchange to manage your Crypto Currencies, the process of making a payment for the exact amount can often be tricky to understand. Even more so when factoring in the exchange’s transaction fee, the post here is to help clarify this process by creating a clear understanding of how to Transfer Crypto Currencies from an exchange.
I will be basing this example from an account on Bittrex and paying to an Order created on the Bit2Bill platform. The concepts and process outlined here will apply to all exchanges.
Using Bittrex to pay an Bit2Bill Order.
First things first, you want to make a crypto payment. So with that in mind you will have to know which Crypto Currency you are going to be paying with. For this example that choice is easy. I have created an Order with Bit2Bill to pay my internet bill using Ethereum. (If you are not making a Bit2Bill payment, don’t worry the following steps apply to any crypto payment made from your exchange)
1.Log Into your exchange and navigate to your ‘Wallets’ section. Here we will search for Ethereum (ETH).
2. Click on the withdrawal icon (this is the red ball and arrow icon )
3. Now we need to know how much Ethereum we are going to be transferring. Looking at the Bit2Bill Order below the amount we need to transfer is 0.16188106
4. Enter the amount of Ethereum required to pay the order into the ‘Quantity’ box (0.16188106)
IMPORTANT – This is where I found things to be a little tricky to understand.
Why do I say that? Well take a look at the three Amounts shown.
Firstly, let me draw your attention to the Third amount Total Withdrawal. This is the final and actual amount that will be sent. If we look at the Total Withdrawal amount we will see that it is not the amount we had entered in to be withdrawn. We wanted to withdraw/pay 0.16188106 ETH instead the Total withdrawal is showing 0.15588105 ETH.
What’s going on here? Exchanges do NOT add their own Transaction Fee on top of the amount you are wanting to Withdraw. Instead they deduct from the amount you want to withdraw. Effectively you will not be withdrawing the amount you thought, rather a lesser amount. Now if you are making a payment to someone else this means you are short paying them.
To solve this and to always ensure that you pay the correct amount, simply add the Transaction Fee amount to your Quantity(Order amount) i.e. 0.16188106 + 0.006 (transaction Fee) = 0.16788106.
Now replace the amount in your Quantity input with our Order Amount + Transaction Fee which is 0.16788106. Now your withdrawal form should look something like this.
Take note that the Total Withdrawal amount now matches the Amount we wanted to pay in our order.
5.Copy the address to which you will transfer your Crypto Currencies to. Below is the Bit2Bill Order address we are paying to.