Reducing Bitcoin’s High Transaction Fees !

Transaction Fees

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The total fee for a bitcoin transaction is $23. There are, luckily, cost-cutting solutions open. It was just a matter of time. Bitcoin exchange costs and Bitcoin transaction fees are increasing again now that bitcoin is in a bull market, and more consumers are flocking to access the digital currency.

As per tracking service Bitinfocharts, the daily bitcoin transaction fee has been fluctuating between $24 and $31 lately. Higher fees are paid as the blockchain gets overloaded. On the blockchain, a certain amount of room has been set aside. When the lanes are packed, transfers travel more slowly, close to a traffic jam.

The number of transactions waiting to be approved by the network has risen dramatically over the last few months. In addition, consumers must pay a charge to the Bitcoin network’s miners in order for their transfers to be approved.

Since miners have a stronger desire to include more lucrative transactions in the blocks, they mine, adding a higher charge to your transaction would bring it through quicker. Since they compensate miners and allow them to engage in the process, these payments often foster a cleaner and more stable network. For everything, you want to know about the bitcoin market visit https://bitcoin-champion.com

Fortunately, there are opportunities to reduce expenses if you have the ability to understand how the Bitcoin network functions and how to use the best software.

1. Be Polite and Wait for Right Time

There are a range of choices to explore if you have moments on your hands. Choose a moment when the blockchain is not as crowded. Businesses are closed on weekends, for example, and fewer sales are made overall. This makes for a bit extra time for transfers to clear.

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Alternatively, you might submit the transaction for a cheaper charge and just wait for it to clear. While the average Bitcoin transaction could be about $25, the median is more likely to be what the bulk of consumers would need to spend. As per bitcoinfees.earn, the most inexpensive transaction fee is around 102 satoshis/byte if you want to submit a transaction right away.

This converts to a fee of 22,848 satoshis, or $11, with a median transaction volume of 224 bytes. If you don’t bother staying around a couple of hours, the cost is 83 satoshis per byte, or around $9 if you’re able to stay a bit while the price will begin to decline.

You’ll need to use a wallet that enables you to configure custom transaction fees for this technique to function. Many do, but others don’t so double-check if the wallet you’re using helps you to set custom fees. It’s also worth finding out that this technique is highly risky. If the fee is too big, the transaction can get stuck or fail to complete entirely.

If you’re nervous about this prospect, go to a place like mempool.space to get a sense of the latest fees involved with bitcoin purchases. Fee recommendations for low-, medium-, and high-priority transactions are shown on the web. Transactions would pass quicker because of the higher priority payments. If you’re not in a hurry, though, you should opt for a cheaper fee and wait for it to be added later.

2. Lightning to The Rescue

Rising transaction fees as more people flock to Bitcoin have long been expected by developers. That’s one of the reasons they’re working on the Lightning Network, a network designed on top of Bitcoin that will enable the network to accept further transfers while also reducing congestion.

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Although the typical on-chain bitcoin transaction fee could be $25, the typical Lightning transaction fee is a fraction of a penny. For users who plan to make several purchases in the future, this is the perfect long-term option.

3. Allow Use of Wallets That Are Compliant with Scaling Technology

Returning to the environment of bitcoin transaction payments on the blockchain: SegWit transfers, which the Bitcoin group introduced in 2017, will charge rates that are up to 30% smaller than legacy transactions. In other terms, if a legacy transaction costs $15, in the best-case situation, a SegWit transaction might cost as little as $10.50.

Bitcoin transaction fees article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on March 8, 2021.

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