Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: Zed0X on December 20, 2020, 03:26:52 AM
-
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).
-
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.
-
:))
-
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.
-
I am currently using Guarda, it allows you to set fee as well.
-
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.
-
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.
-
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.
-
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
-
Here are some of the newbie friendly tricks that I use:
I think @op forgot to add the most important tip of saving on bitcoin transactions, using bech32 addresses (starting with "bc1")which is known to increase transaction weight efficiency by up to 50%. The lower the transaction size, the more fee save.
This also helps save block density and allows more transactions to be confirmed in 1 block.
-
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.
You're absolutely right! Striking that balance is key. Opting for extremely low fees can delay confirmations, and no one enjoys a stuck transaction. A better approach is to adjust fees based on network congestion—use tools like mempool monitors to ensure you're not overpaying but still getting timely confirmations. Smart, secure, and cost-effective!
-
May I also add sending transactions on midnight? Although that is wildly dependent on timezones, I'd think that sending at midnight in UTC-5 or UTC-6 means that you will catch a lot of Europeans sleeping at that time too, so I guess that is another time when you can catch fees going very low, in there is a crazy fee market going on like what happened several months ago.
-
Thanks for sharing these tips! I agree—using non-custodial wallets and adjusting fees is a game-changer. Checking the mempool size before sending is critical, and weekends have also been the sweet spot for me. Great advice for newbies to avoid those crazy $5 fees. Thanks for the resources as well!
-
Thanks for sharing these tips! I agree—using non-custodial wallets and adjusting fees is a game-changer. Checking the mempool size before sending is critical, and weekends have also been the sweet spot for me. Great advice for newbies to avoid those crazy $5 fees. Thanks for the resources as well!
The fee won't be $5 all the time, it changes according to the mempool congestion, right now it only costs cents for a TX with one input and one output.
Another thing which isn't mentioned clear here is about consolidating the smaller UTXOs when fee is lower, at the moment is perfect for consolidation so whenever the fee spikes you don't have to bear that much on the fee.
-
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).
I don't think this is effective.... sending on weekends won't make much difference.
Fees are much more controlled by price and market timing than to weekdays/weekend
Understand coin control control is a very important feature which is not mentioned.
You can use less utxo if you understand coin control, making transaction size smaller ,i.e. , lower fees
-
Understand coin control control is a very important feature which is not mentioned.
You can use less utxo if you understand coin control, making transaction size smaller ,i.e. , lower fees
All these methods can only save fees while depositing but withdrawal fee will be outrageous not only when the mempool is congested but all the time especially for bitcoin so people can prefer the LN deposits and withdrawals which incorporated in major exchanges so people can make use of LN especially while withdrawing that let them to move their bitcoin out of exchanges just for few cents instead of spending 10 or 20 dollars per withdrawal.
-
All these methods can only save fees while depositing but withdrawal fee will be outrageous not only when the mempool is congested but all the time especially for bitcoin so people can prefer the LN deposits and withdrawals which incorporated in major exchanges so people can make use of LN especially while withdrawing that let them to move their bitcoin out of exchanges just for few cents instead of spending 10 or 20 dollars per withdrawal.
Withdrawal fees depends on the exchange.
I remember FTX a few years ago. They had zero BTC withdrawal fees (but mining fees were very low).
Certainly LN is good, specially when transfering money between exchanges. Personally, I don`t like LN wallets and I think all of them are somewhat unsafe and nobody should use for high amounts
-
All these methods can only save fees while depositing but withdrawal fee will be outrageous not only when the mempool is congested but all the time especially for bitcoin so people can prefer the LN deposits and withdrawals which incorporated in major exchanges so people can make use of LN especially while withdrawing that let them to move their bitcoin out of exchanges just for few cents instead of spending 10 or 20 dollars per withdrawal.
Withdrawal fees depends on the exchange.
I remember FTX a few years ago. They had zero BTC withdrawal fees (but mining fees were very low).
Certainly LN is good, specially when transfering money between exchanges. Personally, I don`t like LN wallets and I think all of them are somewhat unsafe and nobody should use for high amounts
Nowadays the withdrawal fees are huge, especially for retail investors so they are forced to withdraw in less frequency which puts their assets at risk.If they optimize LN they can withdraw using LN and simply move the funds to their wallet once their received via LN by that they only pay the mining fees not the withdrawal fees to the exchanges.
Users are still new to LN and they need to increase their inbound value if they want to receive via LN more often.
-
Thanks for sharing these tips! I agree—using non-custodial wallets and adjusting fees is a game-changer. Checking the mempool size before sending is critical, and weekends have also been the sweet spot for me. Great advice for newbies to avoid those crazy $5 fees. Thanks for the resources as well!
Not sure about this, although during weekends there's not much movement as the players are either enjoying the weekends with their families that's why there are no movement at all during this time, or maybe some investors are not resting.
So it's not at all guarantee that weekends fees are lower, you really have to check mempool first before sending or making any transactions.
Time the market, and you will be good.
-
Great tips for reducing transaction fees! I'll definitely check out the mempool sites and try sending during weekends to save on costs.
-
1. Use Low Network Traffic Times
Bitcoin transaction fees depend on network activity. Check platforms like Mempool or BTC Explorer to see when activity is lower and send transactions during those times to save on fees.
2. Choose a Lower Fee Option
Most wallets let you manually set your transaction fee. Choose a lower fee option if your transaction isn’t time-sensitive.
3. Use SegWit Wallets
Switch to a SegWit-enabled wallet (e.g., those with addresses starting with "bc1"). SegWit transactions use less block space, which lowers fees.
4. Batch Transactions
If you’re sending Bitcoin to multiple addresses, combine them into one transaction instead of sending separately. This reduces fees.
5. Consolidate UTXOs
If your wallet has many small unspent transaction outputs (UTXOs), consolidate them when fees are low. Fewer UTXOs mean lower transaction costs later.
6. Consider Layer 2 Solutions
Use the Lightning Network for smaller or frequent transactions. It’s faster and significantly cheaper than on-chain transactions.
7. Double-Check Fees Before Sending
Some wallets automatically choose high fees for faster confirmations. Always review and adjust the fee manually if needed.
-
1. Use Low Network Traffic Times
Bitcoin transaction fees depend on network activity. Check platforms like Mempool or BTC Explorer to see when activity is lower and send transactions during those times to save on fees.
2. Choose a Lower Fee Option
Most wallets let you manually set your transaction fee. Choose a lower fee option if your transaction isn’t time-sensitive.
There's no such thing as low traffic on the network, it's just random and people always believe that on weekends it's little less but it's just an assumption though, it seems same everyday.
The fee should be appropriate not lower or else the TX might get stuck for a while so either it has to be purged or replaced with higher fee.
Apart from consolidating UTXO, it's important to use the wallet which offers address control that let you to select which UTXO that you want to participate in this TX.
-
Sending on weekends is the best strategy that has worked for me.
-
Blockchain technology continues to revolutionize industries, and one of its most practical use cases is **crypto staking**. By staking cryptocurrencies, users can earn rewards simply by holding and securing the network, all without needing expensive mining equipment or high energy consumption. This method is not only sustainable but also an excellent way for both beginners and seasoned crypto enthusiasts to generate **passive income**.
For anyone looking to get started with staking, choosing the right cryptocurrencies is crucial. Factors like staking rewards, project stability, and network security play a big role. If you're exploring options, learning about the **Best Cryptos to Stake** can help you make informed decisions and maximize your rewards.
This approach ensures you get the most out of your staking journey while contributing to the network's overall security and decentralization.
-
-snip-
This has nothing to do with saving Bitcoin transaction fees. Not to mention there is no staking on the Bitcoin network either. CMIIW.
Sending on weekends is the best strategy that has worked for me.
As mentioned above, it just feels that way because you have this preconceived notion that the weekend is cheaper. For the last few weeks or so the network has been quite cheap regardless of when you make your transactions. You don't have to wait for weekends unless you're looking to get lucky with your consolidation transaction.