Bitcoin Transaction Fees

[finales]

Hi there,

Let's say I have 6 transactions that I want to be processed. Do I attach a small bitcoin fee per each transaction or is it a flat rate to include a transaction in a block? Also, as a tangent, if a transaction has multiple inputs and outputs, is the fee on each input or the transaction as a whole? Thank you so much for all your help guys!

[NeuroticFish]

Hi there,

Let's say I have 6 transactions that I want to be processed. Do I attach a small bitcoin fee per each transaction or is it a flat rate to include a transaction in a block? Also, as a tangent, if a transaction has multiple inputs and outputs, is the fee on each input or the transaction as a whole? Thank you so much for all your help guys!

The fee is needed for each transaction and it will be cheaper for you if you make one transaction instead of more and that one transaction will send to multiple recipients.

The amount of the fee is related to the size of the transaction. The size of the transaction depends on the number of inputs and outputs.
So yes, the fee for one transaction depends on the number of inputs and outputs.

If you make a transaction, I suggest you use Electrum and set a fee / kb. You should decide the fee / kb by looking at a site like https://btc.com/stats/unconfirmed-tx (or just use the recommended/best fee)

[Velkro]

Hi there,

Let's say I have 6 transactions that I want to be processed. Do I attach a small bitcoin fee per each transaction or is it a flat rate to include a transaction in a block? Also, as a tangent, if a transaction has multiple inputs and outputs, is the fee on each input or the transaction as a whole? Thank you so much for all your help guys!

If you are able to send to 6 diffirent addresses in one transaction u pay fee only once. If you want send 6 times to diffirent address you must pay fee 6 times.
Fee is floating, but in general it must be reasonable enough to be included in block.

[kolloh]

Yeah and the fee is based on the size of the transaction and number of inputs. In general, you will save on fees if you send to multiple addresses at the same time.

If you are curious on the sizing of fees for a transaction, https://bitcoinfees.21.co/ is a good resource for what fees should be used for quick confirms.

[finales]

Oh I see now, as a final note then to summarize:

Let's say my wallet contains 5 Bitcoins, and I want to send 1 to 5 different wallets.
Rather than make 5 different transactions of 1 Bitcoin per wallet, it would be more cost efficient if I created one transaction with the 5 Bitcoins that had 5 outputs of 1 Bitcoin each.

That would be smaller and therefore cheaper to pay processing fees as well as it is only one transaction for a miner to process rather than have 5 different transactions?

Thank you all for your help, this community has been great for helping me learn!

[fathur.aza]

still no transaction fees as well, for me it's okay but what percentage of each transaction?

could in the info?

[Slark]

still no transaction fees as well, for me it's okay but what percentage of each transaction?

could in the info?

Transaction fee is not a percentage of a transaction. It is flat value based of the size of the transaction.
The more bytes of data you send (outputs used), the higher the fee. For fast confirmation you need to include at least 140 satoshis/byte tx fee.
Be wary that you can always use lower fee and try yo use transaction accelerator to boost your transaction.

https://www.viabtc.com/tools/txaccelerator/

[mocacinno]

Oh I see now, as a final note then to summarize:

Let's say my wallet contains 5 Bitcoins, and I want to send 1 to 5 different wallets.
Rather than make 5 different transactions of 1 Bitcoin per wallet, it would be more cost efficient if I created one transaction with the 5 Bitcoins that had 5 outputs of 1 Bitcoin each.

That would be smaller and therefore cheaper to pay processing fees as well as it is only one transaction for a miner to process rather than have 5 different transactions?

Thank you all for your help, this community has been great for helping me learn!

That is correct.
I've seen many good answers to your question, but this is the mathematical answer:

you have 1 input of 5 BTC that can be spend by an address controlled by your wallet, and you want to pay a little less than 1 BTC to 5 addresses (since you'll need to pay a fee, so you cannot send exactly 5 BTC to those addresses, since there would be no room for the fee).

tx size =~ nr of inputs*147 + nr of outputs*34 + 10 + number of inputs
optimal fee according to my node at the time of writing: 149 sat/byte

option 1 => make 5 transactions
tx 1 => input of 5 BTC, output of 1 BTC to the receiver + 4-fee BTC to the change address
tx 1 size (approx) => (1 x 147) + (2 x 34) + 10 + 1 = 226 (estimation)
tx 1 fee  => 226 byte * 149 sat/byte = 33674 sat = 0.00033674 BTC

tx 2 => input of 3.99966326 BTC, output of 1 BTC to the receiver + 2.99966326-fee BTC to change address
tx 2 size (approx) => (1 x 147) + (2 x 34) + 10 + 1 = 226 (estimation)
tx 2 fee  => 226 byte * 149 sat/byte = 33674 sat = 0.00033674 BTC

tx 3 => input of 2.99932652 BTC, output of 1 BTC to the receiver + 1.99932652-fee BTC to change address
tx 3 size (approx) => (1 x 147) + (2 x 34) + 10 + 1 = 226 (estimation)
tx 3 fee  => 226 byte * 149 sat/byte = 33674 sat = 0.00033674 BTC

tx 4 => input of 1.99898978 BTC, output of 1 BTC to the receiver + 0.99898978-fee BTC to change address
tx 4 size (approx) => (1 x 147) + (2 x 34) + 10 + 1 = 226 (estimation)
tx 4 fee  => 226 byte * 149 sat/byte = 33674 sat = 0.00033674 BTC

tx 5 => input of 0.99898978 BTC, output of 0.99898978-fee to the receiver
tx 5 size (approx) => (1 x 147) + (1 x 34) + 10 + 1 = 192 (estimation)
tx 5 fee  => 192 byte * 149 sat/byte = 28608 sat = 0.00028608 BTC

Total fee using option 1 = 0.0016334 BTC

option 2 => make 1 transactions

tx 1 => input of 5 BTC, 4 * output of 1 BTC to the receiver + 1 * output of 1 BTC - fee to the receiver
tx 1 size (approx) => (1 x 147) + (5 x 34) + 10 + 1 = 328 (estimation)
tx 1 fee  => 328 byte * 149 sat/byte = 48872 sat = 0.00048872 BTC

Total fee using option 2 = 0.00048872 BTC

Conclusion => your fee will be a factor +3 times higher if you decide to split up your payments into 5 transactions, compared to pay 5 people in one single transaction

If you want to learn and play with possible fee scenario's, you can use my site to simulate optimal fee settings in different scenario's:
http://www.mocacinno.com/page/feeestimate

[aTriz]

Hi there,

Let's say I have 6 transactions that I want to be processed. Do I attach a small bitcoin fee per each transaction or is it a flat rate to include a transaction in a block? Also, as a tangent, if a transaction has multiple inputs and outputs, is the fee on each input or the transaction as a whole? Thank you so much for all your help guys!

The more inputs and more outputs there is to a transaction, the larger the size.
You can technically pay 0 fees on every transaction but then your transaction isn't going to get included in a block.
Basically, what you should do is look up the recommended fee of your transaction(usually wallets have this function) and follow that recommended fee.
A rule of thumb is that the bigger the size of the transaction is, the more fee you have to pay.

You can include multiple inputs and outputs in one single transaction. So instead of having 6 transactions you only need 1.
You pay a fee, and it's calculated by usually bits/kB.

There is no magical fee setting that is going to get every transaction confirmed first block, if you're wondering. I mean sure you could put 1 BTC as fee but that's not worth it is it.