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    How Much Does It Cost To Send USDC?

    Updated: Jan 9th, 2023
    Kevin Groves
    Kevin Groves
    How Much Does It Cost To Send USDC?

    USDC features a wide variety of use cases when considering the crypto industry as a whole. The token is primarily used on Defi platforms, by traders on exchanges, for staking and payment for goods and services. Each use case involves the transfer of USDC tokens from one place to the other. Naturally, it is important to understand the costs associated with sending USDC tokens. This article will review how much it costs to send USDC, explain the reason for the fees, what is the minimum and maximum fees that can be incurred, and whether the USDC transaction costs can be lowered.

    How Much Is It 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. The token is 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.

    What Is 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 exchangeUSDC Transaction fees
    Binance0.29 (BEP-20), 3.2 (ERC-20), 0.8 (SOL), 0.8 (TRC-20)
    Kraken3.55 (ERC-20), 2.5 (TRC-20)
    Crypto.com Exchange10 (ERC-20), 0.8 (BEP-20)
    KuCoin25 (ERC-20), 1 (TRC-20), 1 (SOL), 5 (BEP-20)
    Coinbase1% of transaction amount

    What Is 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 Is The USDC Transaction Fee So 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.

    Can USDC Transaction Fees Be Lowered?

    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

    Ethereum is currently the most expensive blockchain network when it comes to transferring USDC. While using this blockchain network, the fees may even end up going as high as $30.

    No, a transaction fee is an amount charged by the crypto for facilitating the transfer. However, some cryptocurrency exchanges refund the amount if the users send USDC to another account of the same exchange. A great example of the same is Binance. On this exchange, the fee charged will be refunded to the user if the destination is also another Binance account.

    Conclusion

    USDC can be sent through various exchanges or wallets. However, the fees charged for the same vary greatly depending on the aforementioned exchanges and blockchain network chosen. At the moment, Binance smart chain is the cheapest blockchain network to transfer USDC, while Avalanche, Tron and Polygon also have low fees compared to Ethereum. When it comes to exchanges with the lowest USDC withdrawal fees, Binance is one of the cheapest places to send USDC.

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    Kevin GrovesKevin GrovesKevin Groves

    Kevin started in the cryptocurrency space in 2016 and began investing in Bitcoin before exclusively trading digital currencies on various brokers, exchanges and trading platforms. He started HedgewithCrypto to publish informative guides about Bitcoin and share his experiences with using a variety of crypto exchanges around the world.

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