Network fees or transaction fees or network confirmation fees are additional amounts you pay to get your transaction to be confirmed on the blockchain. Each transaction requires this fee.
A crypto newbie might not be aware that calculating transaction fees is not just looking at averages fees. Transaction size (as measured in kilobytes) also affects miner incentive to take your transaction out of the mempool waiting room and process it. The fee is usually low, however as Bitcoin transaction volumes increase and so does mempool, fees get higher and sometimes your transaction gets caught on the mempool and it might take long time to complete your transaction.
We will explain why this happens and how you can avoid high blockchain fees. Let’s start with understanding network fees first.
For lower fee transactions we recommend using LTC, DASH or Lightning Network.
Understanding Network Fees (aka Transaction Fees or Network Confirmation Fees)
Network fees or transaction fees or network confirmation fees are additional amounts you pay to get your transaction to be confirmed on the blockchain. The network fee is required for every transaction you do without exceptions. This fee depends on the congestion of the network (network load) and the size of your transaction.
Since transactions with higher estimated fees are prioritized, you need to use a resonable fee for the transaction to be processed in a reasonable timeframe. If you would like your transaction to have a timely confirmation on the network, then you need to be sure that a sufficient network fee from your wallet is included. But if the fee estimations are not accurate and when there is a high load on the network, transactions can take long time to be confirmed.
If you make a payment from your wallet:
Most wallets take fees into account for outgoing transactions which will help make sure your transaction is confirmed on time. You can check your wallet settings to make sure your wallet include a dynamically-calculated fee to enable this.
If you make a payment from an exchange:
If you are sending from an exchange or custodial wallet, you might also be charged a withdrawal fee and they might deduct it from the amount you are transacting. So there might be extra fees that you need take into account and many exchanges take hours on withdrawal requests. We don’t recommend sending funds directly from an exchange or custodial wallet.
What can you do when Transaction Fees are too high
As mentioned above, there might be other causes of higher blockchain fees, but for the most part, blockchain fees depend on factors including congestion of the network (network load), transaction confirmation times (affected by liquidity providers), and size of your transaction (as measured in kilobytes).
CryptoRefills cannot influence the blockchain’s capacity and average transaction fees but when transaction fees are too high, you can avoid increased Bitcoin network fees and long waiting times by using alternative payment options you will have at CryptoRefills to lower transaction fees.
On top of Bitcoin payments, CryptoRefills supports other payment options.
- You can start using The Lightning Network (LN). CryptoRefills supports the Lightning Network payments and there are a lot of wallets supporting the LN
- You can use Litecoin. Average transaction fees of Litecoin is cheaper to send and use than Bitcoin. You can convert your Bitcoin to Litecoin, then use Litecoin you converted to make payment.
- You can use Dash. The fees to transact using Dash are known to be much lower than those using Bitcoin.
- You can consolidate your orders in one shopping cart if you are used to make small single orders regularly. You can pay for more products at one go as one single order and transaction at CryptoRefills by using shopping cart function. This can help you reduce the fee as you will not pay a transaction fee at every single order.
- If your transfer is not time-sensitive, you can monitor the average blockchain fee in the network and can wait until the average fee amount drops.
That’s it! That’s all you need to know about how to lower transaction fees at CryptoRefills.
Happy low fee transactions!
Disclaimer: This post is for informational purposes only, and none of the information above is intended to be legal, investment, financial, or other advice.
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