How to Calculate Bitcoin Transfer Fee

You have to pay for transfers in the Blockchain network. This fee is called a commission and it goes to the miners - the people who form the blocks. Bitcoin transfer fees are variable. It decreases and grows depending on the network load. If at the beginning of its existence, commissions for Bitcoin transfers could not be paid at all, then for several years the fee has continued to grow.

In principle, you can change the standard fee by setting more or less. But then it’s not a fact that your transaction will not replenish the already existing number of unconfirmed transactions. To prevent this from happening, the Bitcoin transfer fee must be adequate.

Content

1 Bitcoin Transaction

2 Bitcoin transaction fee calculation rules

3 What factors determine the Bitcoin commission

4 What can be the commission

5 Minimum transaction fee

6 Bitcoin fee calculator

7 Fee for withdrawing Bitcoins to rubles

8 How to save on bitcoin transfer fees

9 Conclusion + related video

BITCOIN TRANSACTION

For full-fledged work in the Bitcoin network, you need to pay a commission. But first, let's look at how deductions will be made: 1 Bitcoin = 1000 mBTC = 100 million Satoshi. That is, 1 Satoshi is 0.00000001 Bitcoin. It is Satoshi that deductions are made to pay for transfers.

Transactions have their own characteristics. Let's say you have one Bitcoin . To send 0.5 BTC, you will receive 0.5 BTC change. Each translation is a program code. It is generated based on where the coins came from and where they go.

You don't even need to think much about specifying the amount of the fee for a transaction. A modern Bitcoin wallet is configured in such a way that when a user makes a transfer, the fee window already displays the amount that the system recommends paying in order for the transaction to be competitive.

But the user has the right to specify the amount that is convenient for him.

The smaller the amount, the longer you have to wait.

If you pay a lot, the transfer will be included in the next block, and if you are greedy, it is not a fact that the transfer will be included in the 25th block. Also, the cost of cryptocurrency transactions depends on the price of Bitcoin. Since when the coins rise in price, the activity on the network increases noticeably.

BITCOIN TRANSACTION FEE CALCULATION RULES

You can find out what the commission for Bitcoin transactions is with the help of a special service - Bitaps processing. This is done as follows:

• Go to the site at the link bitaps.com ;

• In the block "Bitcoin network" on the main page of the site, see the line "Recommended commission";

• You will see a line with three different colored numbers. They are blue, green and black;

• Blue is a high priority, that is, if you specify the value indicated in blue as a commission, there will be a very high probability that your transaction will be included in the next block. Green is medium priority. Black is low priority.

• Pick a number and divide it by 10,000 to get the bitcoin value. This will be the amount of the commission.

The commission is calculated as follows:

On the screen above, the value of 40 satoshi per byte is indicated in blue. To determine how much a transaction with a high priority in bitcoins will cost, you need to divide 40 by 10 thousand. We get 0.004 BTC. That is, in order for your transaction to have a high priority, the commission must be 0.004 BTC. Similarly, the calculation is made for transactions with low and medium priority.

WHAT FACTORS DETERMINE THE BITCOIN COMMISSION

Bitcoin commission depends on several factors.

• First of all, these are transactions. The more participants, the larger the deal code. Each new point adds a certain number of bytes to the deal (mempool size is 15 mb). At the same time, keep in mind that the minimum price for translation increases depending on the size of the code. Every 1000 bytes = 0.0001 Bitcoin.

• How many addresses are involved in the transaction.

• Network loading. The more transactions are carried out at the same time, the higher the commission will be. It prevents the congestion of the Bitcoin network, as not everyone will agree to pay more.

Transactional operations are performed by miners, and commissions are their reward. Thus, the amount you transfer has practically no effect on the size of the fee. But still, there is some regularity, although it concerns the frequency of the transaction:

• A large number of small amounts is a high price;

• Rare, but large Bitcoin transactions - the price drops noticeably.

WHAT CAN BE THE COMMISSION

The size of the Bitcoin commission is volatile, but sometimes users are faced with too high volatility of this indicator. For example, consider the fluctuations for 2017, when the price for a transaction with Bitcoin could fluctuate from 1 satoshi to 500 satoshi at the time of the highest price of Bitcoin. As a result, it was not profitable for users to make transactions, as they could not navigate.

They are trying, like at an auction, to outbid each other. The speed of the transaction will depend on what commission to put when transferring bitcoins. The one who put the highest price will complete the transaction the fastest and get their Bitcoins to the account.

On average, a block is formed in 8 minutes, but the inclusion price in this block is set before it is formed. If you set low prices, a queue is formed that can move for days. In this case, your transaction will hang, waiting for its turn. That is why, before sending a transaction, pay attention to the recommended commission. The recommended fee is the average at which a user can expect to quickly complete their Bitcoin transaction. If you specify a higher price than the recommended one, there is reason to believe that such an operation will be faster.

Consider the example of a deposit in ICO:

• We make an ICO deposit in the amount of 0.01 Bitcoin (about $82).

• When transferring, the commission is 0.004 Bitcoin (almost $ 33). This is the amount that must be paid on top of the money being sent.

• Let's do some simple calculations. If we manage to return the invested 0.01 Bitcoin + 20% profit, we will get 0.012 Bitcoin ($98).

• Everything seems to be fine, we are in profit. But remember 0.004 Bitcoin fees. That is, we spent 115 dollars, and received only 98 dollars. Loss $18.

As a result, making a deposit with such prices is completely unprofitable. If you lower them, the fee will go back to the bitcoin wallet, and not go to the wallet of the addresses involved in the transaction. But with large amounts of transfers, everything is not so regrettable.

MINIMUM TRANSACTION FEE

The minimum commission for transferring Bitcoins can be 0%. But, unfortunately, such a "theory" has long outlived its usefulness. Today it is impossible to transfer Bitcoins for free. Such transfers are non-competitive and are delayed in the network for an indefinite period of time. As a result, Bitcoins are returned to the person’s wallet with advice to increase the commission.

But once such transactions were carried out, however, on certain conditions. Here they are:

• The transaction size must be less than 1000 bytes.

• Each output should have been from 0.01 Bitcoin.

• High priority level.

Today, the fees for transferring Bitcoins make up a decent percentage of the transferred amount, especially if the amount is small. At the moment, the minimum commission that is requested for transactions is 0.0001 Bitcoin (at the current exchange rate, this is 82 cents). But by setting this price, it makes no sense to hope that your transaction will be included in the next block. It is not a fact that with such a rate it will be possible to make a transfer at least on the same day.

BITCOIN FEE CALCULATOR

Today, few people calculate the price of a cryptocurrency transfer manually.

• Estimatefee.com. A fairly simple platform where you can calculate the price of a transaction based on how quickly you need to complete a transaction. The service allocates a range of commissions that can meet the needs of the client.

• bitcoinfees.info This site helps to allocate commissions for several types of transactions at once: slow / medium / fast. All that remains for a person is to choose the method that suits him.

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• bitcoinfees.earn.com. This tool shows the transfer fee in Satoshi.

Transfer fees are highly variable. While you are forming a deal, its price can change dramatically up or down, so the information quickly becomes outdated.

And let professionals use byte calculators. For example, people involved in mining (the commission is paid for their work). By the way, despite the fact that theoretically anyone who has electricity and processors can engage in mining, in reality you need powerful equipment that is not cheap. Therefore, mining is the business of professionals, and professionals want decent pay for their work.

COMMISSION FOR THE WITHDRAWAL OF BITCOINS IN RUBLES

You can find the most favorable exchange rate of Bitcoins for rubles on the monitoring of BestChange exchangers. Exchange rate fluctuations largely depend on how active the demand for this cryptocurrency is on the market. The pattern of work of exchangers is obvious:

• If the Bitcoin exchange rate falls, then the exchanger will deliberately underestimate the exchange rate or raise commissions in order to earn more.

• When the rate rises, exchangers will overstate the purchase rate.

There are other ways to withdraw Bitcoins to rubles:

1: Cryptocurrency exchange. As a reliable exchanger, we advise you to pay attention to the Russian-language multicurrency service Matbi , which has been operating on the crypto market for the 6th year. It can exchange Bitcoin, Dash, Litecoin and Zcash. The service is equipped with built-in crypto wallets for convenient and safe storage of digital assets. To exchange Bitcoin for rubles, you need to go through a few easy steps, namely:

• pass a simple registration on the site;

• send bitcoins to your bitcoin address in Matbi;

• exchange cryptocurrency for rubles;

• send rubles to your bank card (Sberbank, VTB, Alfa-bank, etc.) or electronic wallet (QIWI, Yandex.Money). The entire procedure takes no more than 15 minutes on average.

2: Cryptocurrency exchanges . Only a few sites work with BTC and rubles. On stock exchanges, the exchange rate is more profitable, but the exchange is more difficult. Verification is needed and the exchange procedure itself is not the easiest, especially for beginners. Exchange trading commissions are at the same time slightly lower than in exchangers, in addition, commissions must be paid when withdrawing from the exchange.

3: To the account of the payment system. For example, the most profitable option is WebMoney. That is, in fact, exchange Bitcoin for Webmoney . If you have a formal passport, you can get a WMX wallet (1 BTC = 1000 WMX). Money can be withdrawn from a WebMoney wallet to a bank card (2%), Yandex.Money (3.7%), QIWI (2.2%), cash (from 1%).

It is not possible to exchange Bitcoins for rubles for free. In addition, you need to follow the safety rules, because if the transaction is carried out without intermediaries, there is a big risk of meeting with scammers.

HOW TO SAVE ON BITCOIN TRANSFER FEES

Although you will have to pay for the transfer anyway, if you need to transfer a small amount of Bitcoins and the commission component is too high, you can save money.

In particular:

Simply enter commissions that are less than the recommended amount. This can be done if the speed of the transaction is not critical for you;

Perform Bitcoin transfers when the number of transactions on the blockchain network is less than usual. For example, the flow is much less at night and early in the morning;

Check the time for the transaction on the official website blockchain.info.ru. In particular, if the value is less than 10 thousand, then you can reduce the commission, and if more, it is better not to risk it.

But given that transactions with a small reward for miners may not be confirmed on the network, there is a big risk of wasting time without sending money. At the moment, the number of unconfirmed transactions is more than 162 thousand, and I would not want yours to add to this list.

CONCLUSION

Blockchain and cryptocurrencies are a new financial system. Naturally, it has a lot of drawbacks, and unstable, sometimes disproportionately high commission fees are one of the biggest problems. But this does not detract from the revolutionary nature and convenience of the technology. In the future, bitcoins may well replace standard banking technologies, as they allow you to get rid of the control of modern banks.