A Bitcoin transaction fee is what a user pays to miners to get their transaction included in the blockchain and is an essential component of the network. BTC transaction fees were implemented to prevent spam transactions that could slow down the network. Transaction fees incentivize miners to validate transactions, helping support network security by keeping miners profitable.
The more a user pays, the higher the chance their transaction will be picked up immediately, as there is a limited amount of space in each block.Transaction fees on Bitcoin are mostly determined by the following factors:The “size,” or data volume of the transaction;Users’ demand for block space. The faster a user wants their transaction confirmed, the more fees they will be willing to pay (generally);
Number of inputs and outputs in your wallet;BTC address format;Network congestion, etc.
If you are sending a transaction with the help of a Bitcoin wallet, the wallet should display an option for you to select your fee rate. This fee rate will be calculated in satoshis per unit of data your transaction will consume on the blockchain, abbreviated as sats/vByte. The total fee paid by your transaction will then be this rate multiplied by the size of your transaction.If you wish to have your transaction confirmed immediately, your optimal fee rate may vary depending on the above factors. Best practice in determining an optimal fee rate is to consult your preferred block explorer, like mempool.space. Please note, if you need your transaction confirmed ASAP, better to pay a higher fee.Sometimes, the fee can be too high for some users, especially when the network is busy, or users want to send small amounts. Fortunately, there are some ways to lower Bitcoin fees and save money.
1. Try to use new address formats like Segwit or taproot instead of Legacy, they reduce transaction size and fee accordingly.
Number of inputs and outputs in your wallet;BTC address format;Network congestion, etc.
If you are sending a transaction with the help of a Bitcoin wallet, the wallet should display an option for you to select your fee rate. This fee rate will be calculated in satoshis per unit of data your transaction will consume on the blockchain, abbreviated as sats/vByte. The total fee paid by your transaction will then be this rate multiplied by the size of your transaction.If you wish to have your transaction confirmed immediately, your optimal fee rate may vary depending on the above factors. Best practice in determining an optimal fee rate is to consult your preferred block explorer, like mempool.space. Please note, if you need your transaction confirmed ASAP, better to pay a higher fee.Sometimes, the fee can be too high for some users, especially when the network is busy, or users want to send small amounts. Fortunately, there are some ways to lower Bitcoin fees and save money.
1. Try to use new address formats like Segwit or taproot instead of Legacy, they reduce transaction size and fee accordingly.
2. The number of inputs and outputs affect transaction size (bytes). The more inputs/outpus you have, the larger is the transaction size.So the best is to always consolidate your inputs when the fees are low, so that we the network is congested you can make a transaction with a single input and two outputs (one for change).To consolidate inputs, just make a transaction with the inputs you want to consolidate to an address of yours.At this website you can play around with the number of inputs, outputs and address type, and the respective fee for the transaction. https://www.
3. Choose the right time: Fees on the Bitcoin network are dynamic and can change based on network congestion. You can send transactions during off-peak hours when the fees are lower. To check current BTC gas fees, refer to this website https://bitcoinfees.
4. To accelerate your pending BTC transaction, please use RBF feature (hope it will be implemented into SafePal in the nearest future). In this case, you can increase miners fee and speed up your stuck transaction.
