How is the Bitcoin transfer fee calculated?

bitcoin transfer fee

One of the questions for people interested in Bitcoin is how much is the Bitcoin transfer fee? Bitcoin was originally created for high-speed, low-cost transactions. But it can be said that this goal has not been fully achieved. Bitcoin transaction fees are relatively high. In this article, we’ll look at how to calculate bitcoin transfer fees.

Bitcoin transfer fee on the network

Bitcoin network blocks have one megabyte of storage space for transaction information. The fee set by the Bitcoin sender during the transaction indicates the priority of the transaction to be in the block of one MB. In fact, transactions with lower fees are less likely to be blocked. When the bitcoin transfer fee is too low, the transaction delay is so long that it never takes precedence for approval.

Who sets the transaction fee?

Bitcoin miners receive a part of the transaction fee and a number of bitcoins after the extraction operation. They can increase this reward in two ways. The first method is to find more blocks and therefore more rewards. The second method is to enter transactions that have higher fees in the blocks. Technically, finding more blocks requires a lot of time and money. As a result, the second method is more logical. So the bitcoin transmitter tries not to choose a small fee for its transaction. Free market users and blockchain size both have an impact on determining Bitcoin transfer fees.

What is the current fee rate?

Usually, different wallets set the appropriate fee for the transaction when transferring Bitcoin. The maximum and minimum wage values   vary. So you can use the Bitcoin Fiz site to view the amount of Bitcoin transaction fees.

Determine the best commission rate

An important factor in determining the Bitcoin transfer fee is the size of your transaction in bytes. This is important because miners pay attention to the fee per byte of transactions. The amount of bitcoins you send has no effect on this. Because the amount of bytes in ten dollar and ten million dollar transactions can be the same. You can search for a fee per byte from your previous transactions. Then see how successful each transaction is. Then you will have a criterion for determining the best wage.

How to reduce transfer fees?

You can use Segovit addresses to reduce the bitcoin transfer fee. Thus, reduce the transfer fee by 50 to 70 percent. Ledger Nano S, Treasures and Green Address are some of the wallets that use Segovit.

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