There you are, playing at a crypto casino and you are wanting to withdraw your winnings. But what is this? You are at the end, about to complete the on-chain transaction, and then boom—the fees hit you like a ton of bricks. You’re asking yourself: Why are they so high? What is going on?
Well, here I am to tell you that this is normal, so no need to panic and freak out.
First, let’s discuss what these fees are. Network fees are the fees that not only crypto casino players pay, but all crypto users pay in order for a transaction to occur on-chain. These fees are then paid to network validators (or miners, depending on the blockchain) who, you guessed it, verify transactions, ensure there are sufficient funds, and check the digital signature. They are basically the security of the blockchain.
Other fees that can occur are:
Gas fees: Fees calculated based on the computational work of the transaction (gas used) times the network demand (gas price). A niche version of transaction fees.
Size-based fees: Fees that fluctuate based on the size of the transaction.
Exchange fees: Fees that are charged by centralized platforms to transfer assets from one wallet to another. These are independent from gas/transaction fees.
Blockchain networks become congested—and no, this doesn’t only happen when flu season is around. This happens when there are many users on-chain making transactions. During these high-use times, the fees spike due to many reasons. One being that the miners get overloaded with work and it costs more to get your transaction done. On top of that, if you want your transaction to be prioritized, you will have to pay even more fees.
Why casino players should care–the bankroll management problem
When these networks become congested, fees begin to spike and any and all transactions start to cost more. That means withdrawals and deposits. Moving your funds from one account to another when the network is congested causes a player to lose out on either the funds they are putting into the casino or the funds they won at the casino.
After moving funds back and forth, it begins to get pricey. You may not notice at first, but after a while your bankroll gets smaller and smaller with these additional fees. Keeping your transactions smaller and more frequent is definitely not helping either. At that point, you are just stacking fees more than you are winning.
Additionally, if your bankroll was on the smaller end to begin with, then at a certain point it feels pointless. You begin to pay more in fees than what your bankroll is actually worth, eating into your profit that you took so long and worked so hard for. Now, this is not to say that you need to be putting in your whole crypto savings at one time, but rather learn how to manage these fees.
How to manage the fees
While keeping your transactions and bankroll small doesn’t help, neither does completing transactions during peak times. Finding and monitoring when the network is least used and congested can directly help you find when the fees are the lowest.\
This is not all that can help. Other ways would be:
Batching your transactions into one so that you pay one fee instead of a bunch of little fees will help long-term.
If it is supported, use cheaper networks that may not charge any additional fees or fees that are very small.
Don’t deposit your entire bankroll if the fees are high. This can cause the fee to be higher due to the size and amount of work the miners need to complete.
Conclusion
No matter what, there will be fees that occur when completing a transaction at a crypto casino, but don't let this take away from your bankroll. You should be able to use the money you set aside to play with without losing it before even beginning to play.
Fees will keep spiking, but it is up to you as a player to decide how to manage them. If you want to learn more about these fees, read our full guide on how gas fees work and how to reduce them. That way you get a more in-depth understanding of what they are. It can also help you manage your bankroll by staying informed.