This Is How Much It Costs To Send USDC

Key Takeaways:

• The average transaction fee for sending USD Coins from one wallet to another is 4.21 USDC. The fee is paid by the USDC sender and covers the computing costs to validate and process the transaction.
• Large crypto exchanges typically have the lowest USDC transaction fees. Currently, Binance has the lowest fee at approximately 0.29 USDC.
• Choosing the right blockchain network (e.g. BEP-20) to send USDC plays a major role in determining the transaction fee.

The Costs Involved To Send USDC

Sending USDC tokens involves a transaction fee when transferring between others. The fee may vary largely, depending on various exchanges and wallets. The average fee to send USD Coin is approximately 4.21 USDC at the time of writing. However, there are exchanges that also facilitate the transfer of USDC tokens for as low as 0.8 USDC such as Binance. Other exchanges, such as Bitstamp, can charge 20 USDC for a single transfer to an external wallet.

Why Does USDC Have A Transaction Fee?

USDC is a “stablecoin” that was created by CENTRE, which was the brainchild of two highly popular companies- Coinbase and Circle. It happens to be one of the safest stablecoins that are pegged to the US Dollar, making it comparable to the fiat currency. However, it is not a fiat, which means that every transaction carried out isn't managed by an authoritative figure like the government. Powerful computers and groups of individuals across the globe put in efforts to ensure that the USDC transfers and activities run smoothly. Therefore, the USDC network charges a fee every time the user makes a transaction to cover the computing costs to validate and process the transaction on the blockchain.

Who Pays The USDC Transaction Fee?

Like any other crypto transaction, the owner of USDC, who transfers the tokens to another destination, pays the transaction fees. This remains the same across all exchanges and platforms. USDC is a token that is part of the crypto ecosystem for blockchain projects such as Ethereum, Hedera, Flow, Stellar, Avalanche, Solana, Algorand, and Tron. Subsequently, the charge for transferring assets on all these chains varies based on factors like blockchain congestion, exchange, etc.

The Lowest USDC Transaction Fee

The lowest USDC transaction fees can generally be found on the larger crypto trading platforms. For instance, one of the cheapest ways to transfer USDC is using the BNB Smart Chain (BEP20) on Binance. The fee to transfer USDC is approximately 0.29 USDC which is one of the smallest fees at the time of writing. Sending USDC tokens through the Avalanche, Tron, or Polygon chain has an average transaction cost of 0.6 USDC. In contrast, if using the Ethereum network the transaction cost is 3.20 USDC.

Cryptocurrency exchange	USDC Transaction fees
Binance	0.29 (BEP-20), 3.2 (ERC-20), 0.8 (SOL), 0.8 (TRC-20)
Kraken	3.55 (ERC-20), 2.5 (TRC-20)
Crypto.com Exchange	10 (ERC-20), 0.8 (BEP-20)
KuCoin	25 (ERC-20), 1 (TRC-20), 1 (SOL), 5 (BEP-20)
Coinbase	1% of transaction amount

The Maximum USDC Transaction Fee

Fees for a transaction depend heavily on the exchange as well as the blockchain network being considered. Ethereum is the blockchain network that charges the most amount of fees across every cryptocurrency exchange. Based on our research, Bitstamp charges one the most fees on the Ethereum chain when it comes to USDC transfers at 20 USDC per transaction. Moreover, Coinbase is another expensive exchange to transfer USDC which charges a flat 1% fee on the withdrawal amount.

Why USDC Transaction Fees Are High

As compared to other cryptocurrencies, USDC is a cheaper alternative when it comes to the transfer fee. However, there are certain elements that can increase the price of sending the token to another location. This applies to not just Ethereum, but every other network that supports USDC transfers. Some of the reasons that can result in higher fees include:

• Blockchain congestion. Congestion is one of the reasons the USDC can increase. That is, a high volume of transactions occurring during the same period can increase how long it takes to transfer USDC. If a transaction is made during this period of time when the blockchain is busy, then the fees to validate and transfer USDC tokens may increase.
• Market conditions. Increased volatility can lead to an influx of USDC transactions across the network. This can cause congestion, as explained above, and cause the fees to rise slightly.

You Can Reduce The USDC Transaction Fees

There isn't a guaranteed way to lower USDC fees for transactions on the blockchain, however, there are a few strategies that users can undertake to reduce the exchange fees for USDC withdrawals. These include:

• Filtering through exchanges that feature a lower fee overall. Various exchanges have various rates when it comes to the fee structure of a crypto transfer. Some platforms may charge lesser fees while some may feature high amounts. Filter through top exchanges to find out which platform boasts the lowest fees for USDC token transfer.
• Choosing the cheapest blockchain network. There are many blockchain networks that can be used to transfer USDC. While sending the crypto, simply choose the blockchain network that features the lowest fees. Almost every blockchain network that supports the USDC token transfer is a trusted entity. Thus, the user can send USDC for a lower fee without any worry about security.
• Using rebates, coupons, or exclusive promotions. Various exchanges feature events or promotions that may allow users to transfer crypto for nominal rates or none at all. Sometimes, even signing up may help users win rebates or coupons that can be used for cheaper transaction fees.

Frequently Asked Questions