Bitcoin Forum

Hi


I use Electrum wallet. When I first started out with Bitcoin, I assign a new receiving address for every provider that I uses: for instance, cloud mining fund receiving account, I use address 1, transaction with seller @ certain website, I use address 2, receiving funds from BTCJam, I use address 3.

End of the month, if I need to push the coins to an exchange for whatever reasons, the transaction fees can be quite high.


So I thought, perhaps fees can be lowered by just using one address to receive funds. So I consolidate all my accounts and set only to one common receiving address. But to my shock, when I push the coins to my exchange, the transaction fees are still as high! It is almost no difference from using multiple receiving addresses

Any experts could give advice and opinions?


Thank you.

You should be able to change the fees on the settings on Electrum however it's not recommended unless you know what you are really doing , because if the fees are low then it should be or zero then the transaction may stuck and never get confirmed and it may need few days to come back to you so It's better to leave Electrum make the calculation and set the fees .

Define high?

You can set the transaction fee to dynamic with the lowest fee possible and then the electrum will choose what fee to add, but do remember that it will make you transactions low/medium priority and may take hours to confirm. Or just add 10k Satoshi fee/KB and all your transactions will be sent with that and they will be high priority and confirm normally. There is also an option in electrum to manually enter the fee but as I said, low fee may get your transaction stuck with no confirmations for a long time. If you think about it, 10k Satoshi fee/KB is not that high.

And how exactly high are your transaction fees? Because if you are not collecting dust on your wallet there should not be a problem with high transaction fees.
Don't manually lower transaction fee, because it can cause more problems later with processing of your transactions.

Maybe you are mistaken and think that your fees are high while in reality it is standard transaction fees and you just need to cope with it.

I agree with this, Electrum adjusts it so well you should not even worry about fees.
Just go dynamic fees and pull it to lowest. It will not take so much fee.

Changing fee isn't very difficulty nor dangerous. It would be fine for most people to adjust their fee as long as they keep it above 0.00005BTC/KB. Zero or low transaction fee transactions will eventually confirm if you broadcast it continuously as the coin age will rise. Only when Electrum or any other third party doesn't rebroadcast, the transation can be forgotten by the mempool.
Even if you're not collecting dust, with lots of inputs, the size will rise. Although dusts are most commonly associated with higher fees but it isn't completely true.

Even though I use a common address to do transactions, electrum will throw a warning message when I tried to send all coins "Warning: The transaction fees are unusually high".

When I go to the block chain to look through my transactions, I realised my common address has many outputs after I tried to send all coins. My question is: Aren't all transactions at a common address "merged" or "flattened"?  ???  ???

Please take a look at a sample screen capture:

https://i.imgur.com/uIaKFlG.png

This is my electrum fee settings. Am I overdoing it?  ??? I ever tried to send with minimum fees, and the transaction took eons to clear.  ;D

https://i.imgur.com/Kx1ffE6.png

That is around 8 dollar cents per kb. Do you really think that is that high?

It is more than the recommended 10k satoshi though. Maybe just turn of dynamic fees and put it at 10.000 per kb.

Judging from the amount of inputs you have, the size of your transaction is huge. Since miners uses fees/kb for their calculation of priority, the fees in total would be higher if the client wants it to be confirmed ASAP. Regarding the 0.0001BTC/kb fees, it can be affected by the network load and if miners would be willing to accept it. If you base it on a service which calculates the fees, it isn't fully accurate if the transaction is not seen by it. I would just put 0.0001BTC/KB or go to https://www.blocktrail.com/BTC and add the optimal fee in.

Note: If blocks/Blocks with only coinbase transactions are mined regularly, no transaction can be confirmed till the network relays a valid block with transactions other than coinbase is included.

Nope. It does not matter if you receive coins on a different address or not. Each time you receive coins its an input you can use later. If you dont combine the inputs in advance (and pay a fee for doing so in a TX) they will increase the size of the TX in byte which increases the fee.

What you can do - maybe - to lower the fees is the to lower the number of inputs. If you get them by withdrawing from services, consider withdrawing less often.

Hi all, Thank you very much for the inputs. I think I get it now. :-) I naively believed all the transactions to a common address will be merged/flattened.

Another question: So, it does not matter what wallet I use? Does it help if I were to use only blockchain.info wallet?

Probably no. Both Blockchain.info and Electrum uses compressed keys which does help in terms of the size of the inputs. Some service do pay the transaction fees for their customers but they may have rules you have to follow e.g. no transactions related to gambling.

No, its a network thing. There are services that pay the fee for you though like Xapo. I dont use it though so I am not sure what the catch is.

The amount of the fee that is required to get into the next block is determined by the miner, not the wallet.

Some wallets try to figure out what the minimum fee might be, some require you to decide what to pay, and some are set by the developer.

pool transactions

If you use a wallet where the bitcoins are under your full control (such as electrum, multibit, bitcoin core, blockchain.info, etc), then it is up to you to manage the transactions the way you want to.  You can try to make arrangements to have larger amounts of bitcoins paid you you less frequently so that you have less inputs.  You can use high value inputs to "sweep" up some dust on a regular basis without any fee at all and hope that the high value input has enough priority to get confirmed in a reasonable amount of time. You can just send transactions with insufficient fees and hope that some miner (or mining pool) will confirm the transaction for you anyhow.

Another option is to get an account with a service (such as coinbase).  In this case the addresses (and bitcoins) are actually under the control of the service.  They can manage the inputs and sweep them or use them in ways that reduce their transaction costs.  If they are well managed they may pass those savings on to you (for example by paying the transaction fee for you).

I think if you decreasing the minimum transaction fee your priority will be decrease too.So i think its better to stay on default transaction fee....

The bitcoin developers are about to reduce the transaction fees on the bitcoin network tenfold, thanks to the relatively high value of the digital currency.
Transaction fees are small amounts paid to send bitcoin transactions around the network (think of them like postage stamps) and to get miners to confirm them by including them in a mining block. They're paid in satoshis (tiny amounts of bitcoins), which means that as the price of bitcoin rises, the transaction fees get higher.

Just make new BTC Web wallet here - http://blockchain.info (http://blockchain.info) and then the standart transaction fee will be 0.0001 BTC per transaction. Simple and smart decision, plus you can also use one BTC address - it will save on sending fees  ;) And for larger BTC volumes - buy Trezor, which is safe decision  ;D

The developers have no power over the transaction fee, the only thing that they can try is to lower the minimum relay fee (Minimum fee needed for nodes to relay your transaction). Miners decides on which fee they want to accept.
Nothing changes. It would still take the same time. The fee is 0.0001BTC/KB. The total transaction fee depends on the size. One BTC addresses with lots of inputs wouldn't change the fee, it would still be big.

I am seeing the impact of dust collection on one address.

I am unable to send coins as my wallet returned me an error:

error: The transaction was rejected by network rules. (64: dust)

What should I do now? LOL

Thanks. I emptied that address and sent the funds to a brand new address. My goodness. The txn fees are astronomical and it is taking very long to sign the txn. I guess I have to empty the dust address once in a while as it is still actively in use.

The amount of fees is based on the number of inputs. The more number of inputs, the more tx size. So you have to pay more fees.

Your should increase your sending amount and include the minimum fees.

That's why. Most of these transactions are dust (which takes up too much bytes in a tx. tx fee is calculated per kB) You should take a read on how to work your way out of dust transactions and how to get rid of them. For further reading, see here on how transaction fees are calculated. (https://en.bitcoin.it/wiki/Transaction_fees)

10k Satoshi are 0.03 USD.

Not too high imo.

The fees are ok, as they are not that high. If the value of BTC increases  and the fees stay the same, they can tend to get high though.

The best way to reduce fees no matter what carrier you signed your address to is by making small transactions.

No signing a text message will not change your past or future transaction size. You can attach a message to transaction if thats what you had in mind.

Any fixed fee you will get accustomed to will also be wrong eventually. 100k Satoshi may sound like enough, but its not if your TX is over 3500 bytes. Size in byte has the biggest influence on the fee, because miners typically sort by fee per byte. The amount of BTC you transfer however is irrelevant.

If you dont use a wallet that estimates the fee for you based on the current state of the network (like core or electrum) use something like cointape[1] to see how much a fee you need to pay.

[1] new URL: https://bitcoinfees.21.co/