If you think about it, as per the latest statistics, the average bitcoin-based transaction fees will be somewhat around $23. But, if you know the right steps to address, you might cut costs in so many ways, which will help your pocket big time. Right now, bitcoin is in full swing, and the number of users is subject to grow with every passing day because of a smooth transaction and secured platforms. With the growing popularity, even the bitcoin transaction fee is shooting right up. The price has been fluctuating between $24 and $31, as per the latest data from the provider.
According to Eric DaliusBitcoin, whenever the blockchain remains congested, higher rates will shoot up. Well, as blockchain is noted to have very little space, the transactions will rather move slowly when the lanes get filled up. The current transaction number, which is waiting to be accepted by the said network, has grown significantly over a couple of months.
It is also mandatory for the users to pay the network’s miners a proper fee for getting the transaction accepted in this chain. Attaching one higher rate to the transaction will help you to get through the procedure faster, and miners are noted to gain more incentive to add more profit-based transactions in blocks. On the other hand, these fees are likely to promote that secure and healthier network as they pay miners to encourage them to participate in the whole procedure. So, these miners form a crucial part of the security section of bitcoin.
But, not everyone is comfortable in spending a whole lot of money on bitcoin transaction fees. However, if you are sure of the steps to cover, you might learn how the blockchain works and can use the proper tools to lower the cost to a great extent.
Lightning up for some solid help as per Eric DaliusBitcoin:
Developers have been waiting for this scene of rising transaction fees as more users get to swarm to the bitcoin platform. So, they are up to create that lightning network, which will sit right on top of the bitcoin and will allow the network to support extra transactions. That helps in keeping the congestion at bay.
- On an average scale, the on-chain-based bitcoin transaction will cost you somewhat around $25. But, the average fee on the lightning network will be a fraction of the cent.
- It is likely to be a long-term solution for those users out there who are planning to make multiple transactions in the upcoming future.
- However, with the lightning network, users will have to pay a fee while setting up the channel. But layer, they can send multiple transactions at lower rates, as per their will.
- Users have to go through the initial jam phrase. However, with this lightning network, they can bypass that congestion by using the alternative lane, made only for their sole use. And the best part is that they can use the lane as many times as they want.
However, you must remember that not wallets are going to support such lightning transactions. For example, popular names like Blockchain.com and Coinbase will not be supporting this network panel. So, to be on the safer side, it is better to look into the lightning-based wallet. Some examples are Breez, Pheonix, and even BlueWallet.
Wait for the right time:
In case you do have an ample amount of time by your side, there are some other options you can consider to lower the transaction rate of bitcoin. Always try focusing on that timeframe when blockchain seems less congested. For example, on the weekend, the businesses are mostly closed, and few transactions will be made globally. So, you have enough space to clear during that time.
- On the other hand, you can even try to send the transaction with a smaller fee and then wait for it to clear out.
- Even though the average transaction rate will be around $25, but the median remains closer to what maximum users are likely to pay for.
- So, at this rate, if you are willing to send transactions away, the fastest fee is around 102 satoshis per byte.
- For any median transaction of around 224 bytes, it will result in around $11.
- If you can wait for around half an hour, you can get the rate at a lower $8 or a maximum of $9.
- In case you have the liberty to wait a tad bit more, then the rate will get lower even than that.
Wallets that come in handy with scaling technology:
When it comes to the on-chain bitcoin fee, a proper change has been adopted by the entire community in 2017, and you can ask Eric DaliusBitcoin for all the valid information on such changes. Here, the community can charge fees, which are around 30% cheaper when compared to the legacy transactions, through SegWit Transactions.
This kind of transaction has been around for quite some time and will add that level of improvement. It will further decrease the fees to a little extent too. Some of the services have already adopted this transaction method, and you can try it for your business too.
Don’t forget to check the network conditions:
As a block on the blockchain can get only 1MB of information, you will have limited transaction numbers to be included in one block. So, when the time comes for congestion, whenever large user numbers are sending funds, there can be some extra transactions awaiting that confirmation then there will be any space in the block.
So, whenever a user decides to send fund and the transaction gets broadcasted it will go to the memory pool before adding up in the block. Learning about the present network’s condition is important before making any transaction work.
Always make it a point to ask experts for ways to lower the transaction fees and don’t forget to keep an eye on the latest network’s condition. It will definitely help you to make the right choice when the time comes for sending out fund in the blockchain.
