Financial transactions using cryptocurrency are already commonplace for many people
– constantly there are online stores and other sites where you can pay with digital
moneys. The number of transactions in Blockchain systems is only increasing, which is why
the Commission for transferring money is constantly changing. To make transfers with minimal
for example, you need to know what its price is based on and how it can be used
reduce.
What is the Commission charged for transactions?
A cryptocurrency transaction is the process of transferring coins from one user to another.
For a transaction to be completed, the Blockchain network must process it and write it to the block.
Confirmation of the transfer requires certain expenses, which are compensated by the Commission.
First of all, it is used to maintain the network and reward miners. Besides,
the transfer fee was introduced to determine the priority of the transaction. If you need to translate
money within a few minutes – you will have to pay extra for the urgency.
When transferring Fiat funds, the Commission is set based on the transaction amount. In
In cryptocurrency blockchains, everything is different – the Commission depends on the amount of information that
contains a transaction. For example, the sender's address usually has 140 bytes, the recipient's address –
30 bytes, information about the translation process takes about 15-20 bytes.
If we take Bitcoin As an example, then each block weighs 1 megabyte, and the generation
performed every 10 minutes. During this time, several thousand transactions occur. If
the translation was not recorded, it will wait for the next block to be generated.
First of all, the change in costs will depend on the network load. Each Blockchain
it has its own bandwidth, so some coins can provide very
low Commission rates. The Commission is charged in cryptocurrency, so the cost of the transfer
it also depends on the course.
How do I reduce the transaction cost?
Users can set the cost of the Commission they are willing to pay for the transfer. From
this will greatly depend on the time of transfer, so most cryptocurrency wallets
automatically determine the optimal cost of Commission costs.
If the transfer is not urgent, you can specify the cost yourself. This will help you save money
a few tens of cents for each transfer. Some wallets have
the function of dynamic changes of the Commission. It will be useful if
the previously set price was not enough for a quick transaction.
Amount of Commission for transactions in cryptocurrencies
Let's look at how much a transfer can cost in popular cryptocurrencies.
The Commission Bitcoin
The Bitcoin blockchain allows you to not pay for transactions at all. But usually they
they are very slow (more than 24 hours), so many users decide to pay
certain percentage.
Most often, the Commission can be 5-20 Satoshi per byte of information. Thus,
the transaction will cost about 0.3-2 dollars and will take about an hour. To implement
transfer in 10-15 minutes, you will need to pay a priority Commission, which is equal to 3-5dollars.
But remember the priority Commission does not always guarantee a quick confirmation of your Request transactions, as there are cases when the network is overloaded and blocks are formed for a very long time.
The Commission Litecoin
On average, transactions in the Litecoin network have a Commission of 0.1 dollars, they take about 5
minutes. This is because the transaction is considered confirmed after registration
the next 6 blocks after it. This avoids performing a single transaction multiple times
once.
Cost of transactions on exchanges
In addition to direct transfers to other users wallets, many people use
cryptocurrency exchanges – these platforms also take a certain percentage from each
deals. Consider the cost of transactions on the most popular ones:
Binance. The Commission is 0.1% of the transaction amount. If the total trading volume for
the last 30 days exceeds 100 BTC, it will be from 0.09% to 0.02%;
OK OKEx. Costs are calculated in the same way as on Binance;
Huobi. The Commission is equal to 0.2% of the transaction amount. When receiving VIP status on the site,
costs can be reduced by 10-40%;
Bybit. This exchange has a maker-taker system. For the taker (user,
the Commission is 0.075% for the person who placed an order at the market price. For makers
(a user who placed an order at a price that does not match the market price).
a discount of 0.025%.
Why do commissions interfere with daily payments in cryptocurrency?
As you can see on the charts, in December 2017, due to a large number of
however, Bitcoin transactions were carried out very slowly. This forced users to
increase the cost of commissions that were at the level of 30-50 dollars. Now costs at
transfers of Bitcoins are about 0.5-0.6 dollars, but with any increase in demand for
cryptocurrency they can quickly increase by 5 times.
The network at that time was not ready for such a large number of transfers. If you perceive
cryptocurrency transactions as the future – it is very important to solve the issue of scaling and
high commission.
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Here's a quick reference: Exchange Bitcoin to Privat 24 UAH
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With Respect the service team 7money.co