What are they?
Bitso tries to estimate in the best possible way the fees (payments to miners) by constantly iterating a dynamic algorithm, which will be incurred upon a withdrawal on the Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) networks.
First, as a cost-saving measure we group all withdrawals from users on 1-minute windows, i.e., we group withdrawals from all users that occur within 1 minute in a single trade, therefore, the cost of the trade is divided among all those users.
How are they calculated?
In order to calculate how much each user will be charged, we consider the average fee cost from the past trades, divided by the total number of withdrawals included in such trades; i.e., we estimate the cost per withdrawal using as the average the historic cost of the most recent trades.
To learn more about: What are Bitso’s fees? click here.