Commission when transferring bitcoin, what it depends on and how to save money
Cryptocurrency can be used not only for investment, trading and storage, but also for making cheap payments. The Bitcoin Commission does not depend on the amount, so it is profitable to use the blockchain for large transactions. However, you can get all the benefits if you use cryptocurrency correctly.
What does the Bitcoin Commission depend on?
The Commission for transferring bitcoins is the funds that are paid to miners for including payments in the block. The miner is interested in adding transfers with the highest Commission. If earlier it was possible to conduct transactions without Commission, today due to the high load, it is almost always required. Due to low throughput, payment queues are formed.
The amount of Commission is mainly tied to the network load. The more transactions users make, the higher the average cost per transfer. Bitcoin reached its peak in terms of network load in December 2020. Then, due to the sharp increase in the popularity of cryptocurrencies, the average cost of sending was 30-60 dollars.
The average Commission in the Bitcoin network can be found using the service Blockchair.com or sochain.com
On September 6, 2020, the largest payout to miners was recorded. One of the members of the network were transferred 94 504 BTC is $ 1 billion. For a quick payment, the sender paid $ 700.
Can I transfer bitcoin without a fee
Any payment in the system is presented as a program code that takes up space in the block. The more information specified in the transaction, such as the number of addresses, the more bytes the payment weighs. Accordingly, it is impossible to transfer bitcoin without a Commission, but if you understand the principle of the system, you can save significantly.
The minimum Commission amount in the Bitcoin network is 1 Satoshi per 1 byte. If a user receives digital coins to their wallet from 1 sender, and then also transfers money to another address, then the weight of their payment will be approximately 225 bytes. In this case, you will need to pay 225 Satoshi — $ 0.024 on September 29, 2020.
If a user collects a large amount from 100 incoming payments and transfers it to 1 wallet, then the transaction weight will be 18144 bytes. In this case, the fee for miners will be from $ 1.95 on September 29, 2020.
How to save money: instructions
If the sender does not care about the speed of the transaction, they can set the Commission for transferring bitcoins at the minimum value: 1 Satoshi = 1 byte. In this case, his operation will take place within 10-12 hours. However, in rare cases, it may hang for several days.
To send money urgently, you should focus on the workload of the blockchain. On the BitcoinFees website, you can find out the optimal value for a quick transfer. Now it is 68 Satoshi per 1 byte. In other words, you will have to spend 15,232 Satoshi for 1 transaction. Therefore, speed is important only for large transactions, since it is more profitable to conduct them through Bitcoin than to pay interest in the Bank.
Purchase via the exchange
If you are going to trade on the exchange, then you will not have to pay miners for a transfer every time you make a trade. All transactions are carried out inside the trading platform, so the Commission when buying bitcoin is 0.1-0.2% of the amount, depending on the trading conditions.
The following exchanges are most popular on the market:
Binance;
Exmo;
Bittrex;
Localbitcoins, and others.
Cryptocurrency exchanges offer several ways to buy BTC, which depend on the type of order — market or limit. In the first case, the user buys cryptocurrency at the market rate. In this case, it pays the standard exchange Commission for the transaction. With a limit order, the participant independently sets the rate and waits for the order to be executed. Since the user acts as a liquidity provider-maker, the exchange’s Commission may be lower. However, not all trading platforms offer such discounts to traders.
To buy cryptocurrency through the exchange, follow the simple instructions:
- Go to the exchange’s website — let’s analyze Binance as an example.
- Complete the registration process. To make a Deposit using a Bank card, you may need to verify your identity. It usually takes 1-2 hours.
- Go to the section «Trading» — «Classic».
- Select the «Limit» or «Market» order.
- Specify the purchase amount.
- Click on the «Buy BTC» button.
- The cryptocurrency will appear on your wallet after the order is closed.
Conclusion
Transferring money in bitcoins is profitable for large amounts. To do this, it is enough to make a small calculation. Let’s say a user wants to transfer $ 5,000 to Belarus. When transferring via Sberbank, the sender will have to pay from $50, and the transfer will take up to 3 business days. If you prefer Bitcoin, then you will have to pay up to $ 3 per transaction. Accordingly, the higher the payment amount, the more profitable it will be to use digital assets.