Bitcoin Forum

Somehow it's kinda annoying when the transaction takes really long

I use blockchain wallet, i put the amount of fee as high as i can, then it lower down to the minimum amount where it will sent within ~10minute.

But still after half and hour, still 0 confirmation.

Just wanted to check out, how does the miner fee work?

I mean everything in blockchain is automated

So if i sent $10, with Fees $1, it will be instant transfer?

So if i sent like $5000, i will need very big fees for the process to be faster? Or there's a fix amount of fees for instant process

Thanks!

most wallets set an automatic fee that should be high enough to get confirmations within the next 1-3 blocks. the important thing is to see the fees related to the transaction size in kb and not related to the amount or value send.

It isn't the amount of BTC transferred that makes the fee big or small, it's the amount of inputs and outputs of a transaction.
For example:
you have the private key for address AAAAAAAAAAAAAAA and BBBBBBBBBBBBBBBB.
I create 10 transactions, each one having one 1 BTC output to AAAAAAAAAAAAA.
In the meantime, i also generate 1 transation having one 10 BTC output to BBBBBBBBBBB.

If you want to use the 10 inputs to AAAAAAAAAA to send 10 BTC to a friend, your fees will be much higher than when you would use 1 input of address BBBBBBBBBBB


Why?
Because when creating a transaction in the first case (using 10 inputs), the transaction will basically say (very simplified):
- use input 1 of 1 BTC
- use input 2 of 1 BTC
- use input 3 of 1 BTC
- use input 4 of 1 BTC
- use input 5 of 1 BTC
- use input 6 of 1 BTC
- use input 7 of 1 BTC
- use input 8 of 1 BTC
- use input 9 of 1 BTC
- use input 10 of 1 BTC
- create output 1  of 10 BTC

In the second case, your transaction will say
- use input 1  of 10 BTC
- create output 1  of 10 BTC

You clearly notice the transaction in the second case has much less bytes... The fee is calculated in satoshi per byte...

To answer your question: it's impossible to tell you how much fees to add to a transaction without knowing how many inputs you'll use, and how many outputs there will be... $0.1 might be enough to send $1000.000 in BTC, while $1 might be insufficient to send $5.

Thanks alot Senpai!

Therefore in this case

https://blockchain.info/tx/d7652107b39154b6cb15a81ef2ed081db35d0700e3ce68217961cfa452359b12

136qWTQMGDH5iyKBrgRe7FvavHmvPyXuoC >
14Sdg5cB1iTQrLSd7f2pVSKmoAXmSYvJxD $ 36.27
1MdmfFL3TU37Ds1pjivW4kDDZWxrkcbfw3 $ 52.21

The transaction goes from The First transaction where it sent to the address 14Sdg5cB1iTQrLSd7f2pVSKmoAXmSYvJxD $36.27 , and then it sent the leftover back to 1MdmfFL3TU37Ds1pjivW4kDDZWxrkcbfw3 $ 52.21 as thats the balance of $88 - the initial $36.27

Therefore in this case

It creates 2 transaction?

1) 136qWTQMGDH5iyKBrgRe7FvavHmvPyXuoC > 14Sdg5cB1iTQrLSd7f2pVSKmoAXmSYvJxD $ 36.27
2) 136qWTQMGDH5iyKBrgRe7FvavHmvPyXuoC >1MdmfFL3TU37Ds1pjivW4kDDZWxrkcbfw3 $ 52.21

Am i right? Or kinda near to it? Thanks alot!

of course it will be transfer but all transaction can not be instant, it needs to be confirmation first and then it could be transferred into destination wallet. the point is no matter how much you send, if the traffic is busy or overload, then the confirmation will be slow.

from your example sending $10 worth amount of bitcoin with fees about 10% of it ($1) is just too much, fees depend on transaction size and being multiplied with recommended fee/byte rate
for information about the current fee/byte rate go here: https://bitcoinfees.21.co/
and also beside of setting up the fees as one of the factors which make your transaction can fastly confirmed, it's also depends on the block and how much time needed to be solved i guess

Let's take a look shall we ;)
You created transaction d7652107b39154b6cb15a81ef2ed081db35d0700e3ce68217961cfa452359b12
It has one input of 0.12 BTC and 2 outputs (~0.05 and ~0.07). Therefore it's allmost ideal (feewise), since one input and two outputs results in a really small transaction :)

Your transaction seems to be 225 bytes. You added 10170 satoshi's as a fee => 45 satoshi's per byte fee :)

https://bitcoinfees.21.co/ teaches us that at the time of writing, 80 satoshi's per byte would be recommended for a big chance of getting into the next block.

The ESTIMATED waiting time for a tx of 45 satoshi's per byte is between 15 and 540 minutes.

This is an estimation... A miner is completely free to pick any unconfirmed transaction that is currently in his mempool and add it to the block he/she is currently working on. This means that if you're really lucky, a 45 satoshi per byte fee might get you in the very next block... It's also possible the transaction is never added to a block, and eventually dropped/forgotten by the network (in which case, depending on your wallet, it'll be as if the transaction never happened). Some wallets keep on re-broadcasting transactions to the network tough...

OMG, THANKS ALOT, previously i have really 0 idea on how much fee and how the transaction works,  now i have a clearer picture of it! Thanks alot!

And also thanks for everyone who explained!

I think this is already  clear explanation on the question about fees. Me too believe that the bigger the amount, the higher the fees But Iwas wrong and thank you for this effort to clarify. This is the most common misconception about bitcoin fees.  ;D

It appears that you've already got your answer.

However, I would recommend using third-party wallets like coinbase or xapo for small transactions (below $50) to avoid thinking about the fee else (they handle it on your behalf). For big transactions 0.001 BTC would be more than enough for the transaction to be accepted by the network.


Ultimately, whatever fee you enter does not assure you whether the transaction would be confirmed in time as many times the network fails and due to this several transactions remain pending in the network. Bitcoins are never sent out instantly unless the sender and the receiver use a third-party wallet (like coinbase-coinbase or xapo-xapo transactions).

Using coinbase and xapo will be risky for sure because there is lot more KYC policy and verification requirement. You shouldn't be surprised to see your xapo, coinbase account got frozen or ask for verification after using them for some time.

Better not to choose them just to save on fee, electrum and blockchain.info wallets will never ask for verification nor block/froze your wallet. Also blockchain.info have inbuilt fee recomendation system enough to make your transaction get included within first block that will mined next.

I am using bitcoin wallet in my country which is coins.ph but every time i do sending money to my family and friends i do not see that there is a hidden charge they only deduct the exact amount bitcoin i sent.

From the experience I can say that is always best option to stick to the recommend fee and then you will have no problems. I also use blockchain wallet and there you don't have to adjust the fees.
If you put your own customized fee it may happen that you will be having problems with transaction confirmation.

Here's (https://en.bitcoin.it/wiki/Transaction_fees) something about fees that might be of your interest. Here's (https://bitcoinfees.21.co/) a site where you can estimate the fees you need for next block confirmation.

Well, there might be faced some problem using this third-party wallets like coinbase or xapo anytime and obviously you may choose it if there have a point to save money. In security purpose ive not recommend you using this one.

You obviously used 3rd party like xapo or coinbase where they pays the miner fees for you but i think the site that you've just mentioned above is not categorized as a wallet but as an exchanger in my opinion. However used this such a service is a good way for sending little amount, well seems like the confirmation time is a bitcoin's big problem, We live in a technological age where everything should be faster.

There is no such thing. You still have to wait somewhere from five to ten minutes if you placed the correct amount of fees. The fees would depend how big your transaction's block size (which is measured by bytes). I think people above has already pasted a link how to compute it, but for me I usually just stick with what my wallet recommends me to put in there as fees.

Putting aside transaction fee for a moment today for unknown reason we have bitcoin ledger overloaded, you can check this here:
https://tradeblock.com/bitcoin/

there are informations like:
- specification of latest blocks
- total transactions unconfirmed
- total bitcoins sended unconfirmed
- size in Bytes of all unconfirmed transaction in mem pool
- average fee/size (better if your transaction have greater ratio than this)

If someone sent transaction in days like that with even recomended fee, could end up with transaction stuck in hours, so be aware guys  ;)

Transaction size determines fees and not the amount. Network activity the moment of transaction is another one factor. But there companies understand that as a big hassle in everyday life transactions and especially in micro-payments so they try to develop strategies like as BitGo http://www.coindesk.com/bitgo-instant-bitcoin-transaction-tool

 

I don't set any transactions fees it sets on its own and I don't have to wait for a long time. In average i could transact within 30 seconds to 1 minutes. I am worried why users across the world are finding such difficulties.

The transactions are always instantly sent as in transmitted to the blockchain. As soon as you send it in your wallet, it should appear as a pending transaction.

Confirmations are a different thing, those are required to make sure the transaction does not get reversed anymore. This can take longer or shorter than average depending on how congested the network is and how fast blocks are being found currently.

transactions are always instant no matter you pay high fees or low fees or does not pay any fees at all it will be transmitter from one wallet to another wallet instantly after that it takes time while getting the confirmations

if you are going to send a tx today make sure you include a HUGE fee.. like .0007 to .0009 /Kb

the mempool is really overloaded.. its at nearly 45 MB.

i sent a tx with electrum with the "let server choose the fee" checked and i got this :(

https://www.blocktrail.com/BTC/tx/27483a43b2c1fca22be3d0532ead9e7257f673ea2657fd8b689770072ad9edaf

its been over 13 hours.. electrum has never failed me before on fees.. not sure why it did this time tho..

Yes, the transaction is  always instant, but the conformation message depend on the fee structure also. As differne exchanges  charges different transaction fee. But if you pay a little high fee then your conformation can be fast but in yobit it is fixed and and when you transfer bitcoin the fee deducted from your account automatically.