BitcoinCash fees and why you should set a withdrawal limit

0 17
Avatar for nomadghada
2 years ago

Yes, BitcoinCash has low transaction fees and that is why it is an ideally Cryptocurrency for community platforms like Read.Cash and Noise.Cash

With BitcoinCash you can make & get transactions as low as a few cents and that is an amazing feat in the Crypto World, just imagine trying that with Bitcoin Core or Ethereum.

But many of us you are part of this amazing community don't really dive into how the blockchain technology works, every blockchain is different and functions according to their objectives.

While you don't need to become a blockchain expert, it goes a long way to understand it just enough to get the most value and utilization.

BitcoinCash (BCH) transaction and blockchain

I am no blockchain expert, but I have made a few mistakes when dealing with Crypto, well more then a few mistakes. But I have learnt from them and will try to explain them to you in the non-technical manner that I understand them.

If I make some mistake I apologize in advance and someone with technical knowledge can point it and correct me.

So basically on the BitcoinCash blockchain every transaction is recorded as input and output so all the transaction of say $0.10 that make up the your balance of $10 is actually not a single balance of $10 but 100 balances of $0.10 and when you are transferring that $10 worth of BCH you will be paying a higher transfer fees because you can sending multiple transaction.

That is why you might have problems when transferring a large amount consisting of smaller transaction on 3rd party wallets like Coinomi, because you will be limited by the largest amount transferred to your wallet. This is because you can technical pay the fees to the maximum of that amount.

What does this has to do with Read.Cash & Noise.Cash?

These platforms are great and using BCH the users can get tips as small as $0.01 and sometimes if your content is good and you are contributing value to the community those tips can add up $20 or $30, however some of us just want to transfer whatever we get into our wallets as soon as possible and may not set a minimum withdrawal limit on Noise.cash or would transfer every tip on Read.cash no matter how small to wallets as soon as they are received.

This will not only result in transaction fees on all of the small amount transfers but also higher fees when moving a large amount later on.

Closing thoughts

While I am no expert, I try to understand the blockchain of BCH and even through I only have a very small amount, I have learnt the about transfers from a few mistakes. Furthermore, it is when you have little amount that you are prone for a greater loss because a loss of $1 may not be anything to a millionaire but to someone with $20 or $30 in wallet it could mean a sizeable percentage.

Hope you found some understanding from this article and make better choices in the future.

Chao!

2
$ 0.00
Sponsors of nomadghada
empty
empty
empty
Avatar for nomadghada
2 years ago

Comments