Owning and storing A coin on your wallets is pretty cool but what gets most pissed up is having to pay huge transacting with the coin, especially when transacting with Bitcoin. Transaction Fees are an attached fees in a transaction used to mine a transaction into a block, this may get higher when multiple transactions are being made.
Get to know with this article, how to track and adjust Bitcoin and Bitcoin Transaction Fees using the bitcoin.com wallet.
Why Do We Pay Transaction Fees?
Are we not supposed to transact for free? Why are we paying fees for transacting? These are questions some people do ask some times. Now here's the reason why we pay fees for transacting.
The Blockchain is a chain of blocks and for any transaction to be considered successful or valid, it must be added to this chain. The process of adding this transaction as a valid transaction to the blockchain is done by miners. Just like everyone works to get rewarded someday, these Transaction Fees are being rewarded to the miners after a successful block is being mined.
How To Track Transaction Fees on Bitcoin and Bitcoin Cash
Using bitinfocharts.com, anyone can make track of how much transacting with Bitcoin and Bitcoin Cash would cost. The website shows averagely how much Bitcoin's transaction fee would cost in blue compared to that of bitcoin cash in red over the past three months in USD.
Generally, Bitcoin charges more for transactions due to its block size, limited to 1mb while you could have cents paid over transacting Bitcoin Cash because it has a larger block size. Altogether, their fees get to vary when there is a network congestion. It gets worst on Bitcoin obecause some users due to urgency would set a higher fee in order to get their Transaction processed quickly.
Also, anyone can track Transaction Fees for bitcoin and bitcoin cash using bitcoinfees.cash. It displays in a digestible, comparative format what the fees would be on the next block between Bitcoin Cash and Bitcoin Core.
According to Bitcoinfees.cash;
Bitcoin is made up of transactions which fill blocks, which then get chained together, forming an immutable blockchain. Each block processed takes about ~10 minutes. For example, to process 6 blocks takes about an hour on average. Typically, most people using Bitcoin as a currency don't want to wait many blocks for their transactions to be confirmed, so they pay next block fees to get their transaction confirmed within 10 minute block times. Median fees are just the middle range of all the fees to give users a better idea of the average amount being paid by everyone, discarding high and low fees.
How To Adjust Transaction Fees Using Bitcoin.com Wallet.
All transactions by default includes a transaction fee which is automatically set by preference of urgency and the size of transaction being made. Transactions on the Bitcoin Cash (BCH) network are much cheaper than on the Bitcoin (BTC) network, but the two networks are distinct.
Using the Bitcoin.com wallet, transaction fees can adjusted depending on how urgent a user needs the transaction to be processed. This means that if a user needs a transaction to be processed within the next 10 mins, the user gets to pay a larger fee. Also note that fees for performing 6 Transactions and that of performing just one Transaction will differ.
To adjust your Transaction Fees using the bitcoin.com wallet, follow the steps below;
Launch Your Bitcoin.com Wallet application
Tap on Settings > BTC Network fee policy
Adjust your fees depending on how fast you need your Transaction to be processed.
Note: Faster Transactions is equal to larger fees.
