Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: Zed0X on December 20, 2020, 03:26:52 AM
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We are on a bullrun (and we're not done yet) and many traders/investors are moving their funds in and out of exchanges more often which causes the network to clog. There are other factors like the mining difficulty adjustments but that's not the topic I want to address.
As we all know, a congested Bitcoin blockchain leads to high transaction fees like $5 or more. What can you do to avoid paying such fees?
Here are some of the newbie friendly tricks that I use:
1. Use non-custodial wallets instead of custodial wallets.
- Non-custodial wallets allows you to set your desired fees (Electrum, Coinomi, Trust wallet, etc.)
- Custodial wallets will give you a limited option and their recommended fees are usually higher than what is required (i.e Coinbase).
2. Check mempool size and recommended fees on websites like https://mempool.space/ (noob friendly) and https://jochen-hoenicke.de/queue/ Both sites are pretty much accurate from my experience.
3. Send on a weekend. It's been observed that mempool tends to be less congested around these times as traders needs some "rest" too. You can send for as low as 1 sats/vbyte (less than $0.50) and your transaction will confirm in an hour (more or less).
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Binance currently offers 0 fees in the US market.
MoonXBT also offers 0 transection fee for spot and contract trading in all the markets currently.
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:))
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Process your transactions on the platform when there is low traffic on it. The lower the demand for platform services, the lower your transaction fees and the faster the processing of your transaction.
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I am currently using Guarda, it allows you to set fee as well.
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Use the Lightning Network, compare fees from various service providers, time transactions to reduce fees, and more.
Fees for several cryptocurrencies can be found here.
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Reducing Bitcoin transaction fees can help you save money when sending or receiving Bitcoin. But always remember that, it is equally crucial to ensure your transactions are processed promptly and securely. Using extremely low fees may result in slower confirmation times or transactions not getting confirmed at all. Finding the right balance between cost savings and transaction reliability is key.
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We are on a bullrun (and we're not done yet) and many traders/investors are moving their funds in and out of exchanges more often which causes the network to clog. There are other factors like the mining difficulty adjustments but that's not the topic I want to address.
As far as I know, no exchange charge fees based on the transaction fee, it's dynamic but it's like 5x higher than what we pay to transact that TX get included in the next block and they justify that it is one of the way they can make money for the service they are offering.
So reduce your frequency of withdrawal from exchanges on chain or prefer exchanges which supports LN withdrawals.
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So reduce your frequency of withdrawal from exchanges on chain or prefer exchanges which supports LN withdrawals.
Another advantage of reducing withdrawal frequency is that you will have fewer UTXO.
Each withdrawal generates an extra utxo. Utxo will basically increase the fees like a new transaction