Many people wonder: Why do I pay higher transaction fee than normal when I withdraw my money from noise.cash? Aren't Bitcoin Cash transaction fees supposed to be very low? Should I not pay less than one cent? Why do I sometimes pay several cents?
To understand this, you need to understand how a Bitcoin Cash wallet works. I have already written something about it here. Your Bitcoin Cash wallet is similar to your normal phisical wallet. When you receive a deposit, coins are assigned to your address in the blockchain, as in your phisical wallet. These coins are so-called your unspent transaction output - UTXO's.
Here you can see my UTXO's on memo. You see, there are very very many, because I got a lot of small tips on Memo. My memo wallet is therefore very "heavy" (you have to imagine you have a phisical wallet with several hundred one cent coins, it would be very heavy, wouldn't it?).
The fees for a Bitcoin Cash transaction are calculated based on the "weight" of the transaction. The cost are approx . 1 Sat per byte. It doesn't matter how much BCH you send. It is important how many coins (UTXO's) are in your transaction. Sending a coin costs about $0.001.
Imagine you have 200 one cent coins in your wallet. If you tip someone $0.02, two 1 cent coins are used and a small fee of about $0.002 is charged. But if you want to transfer $2 it will cost you about $0.20. If you send $20 with 2000 very small coins, it can even cost $20. All because your transaction contains a lot of very small coins and is therefore very "heavy".
Explained in another way. Imagine you have three wallets A, B and C. In wallet A you have $2 in one coin. In the first attempt you transfer $2 dollars directly from wallet A to wallet C. You move only one coin and pay a small transaction fee of $0.001.
In the second attempt you do it differently. First, you make 200 very small transactions worth $0.01 from wallet A to wallet B. Your $2 coin is split into 200 1 cent coins, you move one coin for each transaction and for each transaction you pay also a small fee of 0.001$. You have now 200 very small coins in wallet B. Now you transfer your 2$ in one transaction from Wallet B to wallet C. Since you have a lot of small coins in Wallet B, the transaction fee is much higher because you have to pay for the movement of each coin. You have to pay about as much as you paid for the 200 transactions from A to B in total (i.e. about 0.20$).
It is advisable to swap the many small coins for one large one from time to time. This is called consolidation. You can do this by sending all the coins to yourself in the same wallet. You will see that this will cost you a little and reduce the amount of your wallet a little, but you can be sure that your next transaction, no matter how big it is, will cost you a fraction of a cent. The fee you pay for consolidating will be paid sooner or later, so don't be so sad that your amount after consolidation is a little lower. It is lower, but it is correct now. Please consolidate soon after a block is found, otherwise you may run into the 50 chain transaction problem with this many coins. Here you can see a transaction where many small coins were consolidated into one big coin.
Note that a Bitcoin Cash transaction can be a maximum of 100000 bytes. This means that if you have a lot of very small coins, you cannot spend them all at once. You have to split your transaction into several transactions and spend your money step by step.
If you want to see how many coins are in your wallet, install electron cash for PC and import your seed. Please make sure that you use the appropriate derivation path. You can read about derivation path here.
Very good electron cash youtube tutorials you can find here.
PS
It is a simplified explanation for people who are not technically savvy.
PS 2
For some time now, noise.cash has not been sending very small amounts to your wallet, so consolidating is hardly necessary.
...and you will also help the author collect more tips.
You explained a complex matter very clearly. Consolidation is required before withdrawing.