Bitcoin high fees

[kryptqnick]

The fees have been terrible lately. Two days ago, I created a transaction and paid the recommended priority fee of $33, even though it's clearly a lot of money. My transaction was stuck for hours (at least 4 hours, but I think it was even more than that) because it turned out that the average fees jumped to $60 at that time... By the way, according to Bitinfocharts, the average fee is still around that price... This is too high even for quite big transactions of a few hundred dollars, so the question of a viable solution to this fee problem is very relevant these days.

[Spack17]

I really am unhappy with high fees for Bitcoin transactions. And there is not only high fee problem. The transactions also take a very long time to end. I wonder until what point we will have to deal with these annoying problems. I don't want to pay ridiculous amounts for any kind of transactions and I'm sure that nobody would like to.

[bbc.reporter]

The fees have been terrible lately. Two days ago, I created a transaction and paid the recommended priority fee of $33, even though it's clearly a lot of money. My transaction was stuck for hours (at least 4 hours, but I think it was even more than that) because it turned out that the average fees jumped to $60 at that time... By the way, according to Bitinfocharts, the average fee is still around that price... This is too high even for quite big transactions of a few hundred dollars, so the question of a viable solution to this fee problem is very relevant these days.

However, who are those people that are paying for more than $100 per transaction and where are they sending those coins? There are replies that want to imply those transactions are from exchanges to wallets because exchanges charge high withdrawal fees. I disagree. I speculate that those transactions are from wallets to exchanges and those users want to have their transactions confirm first to dump their coins first.

[JerryKin]

We all agree that a transaction fee is inevitable for everyone in the business of trading the coins. But it becomes ridiculous when one has to pay a fee that is almost half of what is being traded. It's almost no gain having a Bitcoin wallet that is well packed and still almost useless at the of point  one's needs.

 I know the size of the fee depends on the network of transaction and the size of the data being transacted. And there's no single price for the fee meaning it varies almost always

This burden forces alot of investor to rather than trade their coins for their needs to holding it for long till when trading it is really worth the fee.

Solving this major setback (as it seems) would definitely give Bitcoin a new face. Imagine you can actually pay your electricity and water bills at no extra cost or at a reduced and stable cost.

[worldofcoins]

We all agree that a transaction fee is inevitable for everyone in the business of trading the coins. But it becomes ridiculous when one has to pay a fee that is almost half of what is being traded.

I guess trading in the times of now is not in favor of fees and people are preferring to keep their funds on the exchanges if they can't afford the withdrawal fee, which will take a chunk of their Profits if they made any, Otherwise, withdrawal will take a huge % from their deposit or deposit with loss, Mostly for people who trade 200$>

Last month i was able to use 10sat/B and get my transaction confirmed within 10-20 minutes but these days it's taking at least 40sat/B to do the same.

[tyz]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

Hard to say why they are in a hurry, but "high" fees also depends on the amount you transfer. Someone who is transfering 10k from an exchange, don't really care about a fee of $10 or a little bit more. Sometimes buyers also have the obligation to carry out a transaction within 15-30 minutes, which then also has at least one confirmation in this time. This could also be a reason.

[jatin729]

That's really a very big issue in big assets like bitcoin, Eth, etc. as the supply and demand increases it is obvious that fee will rise.
Bitcoin is basically has proof of work ecosystem where we need to confirm the transaction from the 3rd person (Miner), That is why fee is becoming to high as more blocks created.

[famososMuertos]

Really when you immerse yourself in the world of bitcoin for whatever reason, bitcoin rates are part of that environment, maybe for you $ 5 just to mention one figure but it can be much more, it is a lot of money for a fee but in reality Who has to make the transaction only pays and although there are a series of enterprises or companies that are always managing or paying high rates, individuals are the ones who, on average, pay high fees.

That in reference to what involves only bitcoin but when you use Fiat money to make it reach another person between countries, the bitcoin rates are irrelevant, believe me $ 15, $ 20 does not mean anything. For example the issue of remittances who have a purpose to eat today, medicines or in general the livelihood of who receives that money, send $ 200 represent an urgency that the bitcoin fee is worth it, if you compare those bitcoin rates with the traditional rates.

[yohananaomi]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

Hard to say why they are in a hurry, but "high" fees also depends on the amount you transfer. Someone who is transfering 10k from an exchange, don't really care about a fee of $10 or a little bit more. Sometimes buyers also have the obligation to carry out a transaction within 15-30 minutes, which then also has at least one confirmation in this time. This could also be a reason.

I think the high fees can be very true what you say, it just depends on the transactions made or maybe the traffic is really heavy at that time. back again if we make a transaction that is large enough if only to set aside a few $ of course there will be no problem, the important thing is that the transaction can be completed or not delayed. because of the delay at a low cost, the person making the transfer becomes nervous. so it doesn't matter if it happens cause and effect will always happen and we can't avoid it. as long as it is for good to set aside a little is natural.

[ChiBitCTy]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

It is really getting quite annoying how high fees have been.  Even though bitcoin has come down quite a bit in price, and there is much less trading activity, fees still remain stupid high.  There is of course the Lightning Network, and I know that they have been working on that for quite some time but it's like when the heck are they actually going to get it up and running in an easy to use fashion.  I know Rome wasn't built in one day, and that these types of things, especially for a brand new breakthrough technology takes time, but it sure feels like it's been taking a lot more time than necessary.

[ziennakarishma21]

Binance charges 0.0005BTC for each withdrawal. actually I feel the fee is quite high compared to the times I trade and I am really fed up with withdrawals that have to pay such fees.

[rdbase]

We all agree that a transaction fee is inevitable for everyone in the business of trading the coins. But it becomes ridiculous when one has to pay a fee that is almost half of what is being traded. It's almost no gain having a Bitcoin wallet that is well packed and still almost useless at the of point  one's needs.

 I know the size of the fee depends on the network of transaction and the size of the data being transacted. And there's no single price for the fee meaning it varies almost always

This burden forces alot of investor to rather than trade their coins for their needs to holding it for long till when trading it is really worth the fee.

Solving this major setback (as it seems) would definitely give Bitcoin a new face. Imagine you can actually pay your electricity and water bills at no extra cost or at a reduced and stable cost.

It is the price of doing business, of course, if they didn't charge any fee then it would eventually cease to be usable. In other words, it would be slower than it is now if they didn't charge a high enough fee to move the transaction around in a timely fashion.

We all agree that a transaction fee is inevitable for everyone in the business of trading the coins. But it becomes ridiculous when one has to pay a fee that is almost half of what is being traded.

I guess trading in the times of now is not in favor of fees and people are preferring to keep their funds on the exchanges if they can't afford the withdrawal fee, which will take a chunk of their Profits if they made any, Otherwise, withdrawal will take a huge % from their deposit or deposit with loss, Mostly for people who trade 200$>

Last month i was able to use 10sat/B and get my transaction confirmed within 10-20 minutes but these days it's taking at least 40sat/B to do the same.

Thats the problem with keeping anything on exchanges: the fees the user has to endure after their trading session is done.

But if they are not exchanging their bitcoins, there are other ways so the fees can be reduced inorder for a transaction to complete.

source: https://www.skalex.io/what-is-a-bech32-segwit-address

[Vatimins]

Who is paying for high fees and why are they doing this? I am quite certain this is not holders hurrying to buy a Tesla with bitcoins hehe. This might be transactions from exchanges or going to exchanges, however, why the hurry?

     The ones who are most likely to pay high fees are the new comers in this industry. These people tend to not bother about the high fees since they barely know anything about it nor do they know that it is higher than what others normally pay for. Another thing would be people who always transfer funds from hard wallets to exchanges every time they want to make a trade and depending on the urgency, they do not care much about the fees as long as they can be able to make a trade the soonest to not get left behind. And others, due to sudden emergencies.

[buwaytress]

Binance charges 0.0005BTC for each withdrawal. actually I feel the fee is quite high compared to the times I trade and I am really fed up with withdrawals that have to pay such fees.

Haven't done a withdrawal from exchanges for a long time now. Only use them to cash out to fiat, where the fees are either free or 0.80 EUR (Binance and it's instant SEPA so it's not bad). I'd have thought they'd be adjusting fees by now, that's $17.50 at today's BTC price a pop!

I did pay a 60 sat/byte fee last week for a rather annoying urgent tx, but that's a lot, a lot higher than the average or mean I've been paying all year. 1 sat's been smooth sailing for most of this 2021.

Why're you using it to w/d btc so often though? I get it for one-off buys but...

[fiulpro]

Sometimes it's out of necessity. First of all there are people who use nothing but bitcoins. For those who usually do their day to day transactions in Bitcoins they have to pay the fee no matter how unrealistic it is. But there are always some options like using segWit or even using lightning network.

As far as I remember my wallet has been charging 0.0006 BTC which is actually higher than binance but it deals in my local currency therefore it's more or so beneficial either way.

Binance charges 0.0005BTC for each withdrawal. actually I feel the fee is quite high compared to the times I trade and I am really fed up with withdrawals that have to pay such fees.

Try and limit the withdrawals, if you are doing that you can ask your friends if they also need to withdraw some money, doing it together always makes it easier. Plus if you are trading you can convert it into other ATH and then reconvert once they are in your wallet, considering they do not charge much for that. For Litecoin fee is just 1.40$ something and in only 15 min, it gets confirmed. I usually use a wallet where trading is enabled here too. Therefore I can directly withdraw in the bank account.

[CryptopreneurBrainboss]

This might be transactions from exchanges or going to exchanges, however, why the hurry?

Excluding the obvious which have been mentioned by others, of exchanges having their fixed withdraw fees. We still have deposit coming into the exchange with priority fees (high fees) for sole purpose of purchasing newly listed altcoins.

If I'm not mistaken coins are been listed daily on this centralized exchanges and this newly listed tokens get interest from speculators which have to deposit to trade, assuming they don't have funds already on the exchanges and this deposits has to be processed in the quickest time possible to be among the first buyers to increase their chances of profiting.

Also lets not forget most of the wallet have a default fixed withdrawal fees that you'll have to adjust the fees to not over priced your transaction but many are yet to know this and just go with the default charges the wallet recommend.

[cotton ball]

I really am unhappy with high fees for Bitcoin transactions. And there is not only high fee problem. The transactions also take a very long time to end. I wonder until what point we will have to deal with these annoying problems. I don't want to pay ridiculous amounts for any kind of transactions and I'm sure that nobody would like to.

I think you are not the one who is disappointed with the high cost of bitcoin, and slow transactions, but everyone on this forum is also disappointed, maybe because the offer has increased, so there is a high fee, we only hope that in the future bitcoin transaction fees be more stable,

[Vishnu.Reang]

Excluding the obvious which have been mentioned by others, of exchanges having their fixed withdraw fees. We still have deposit coming into the exchange with priority fees (high fees) for sole purpose of purchasing newly listed altcoins.

If I'm not mistaken coins are been listed daily on this centralized exchanges and this newly listed tokens get interest from speculators which have to deposit to trade, assuming they don't have funds already on the exchanges and this deposits has to be processed in the quickest time possible to be among the first buyers to increase their chances of profiting.

Also lets not forget most of the wallet have a default fixed withdrawal fees that you'll have to adjust the fees to not over priced your transaction but many are yet to know this and just go with the default charges the wallet recommend.

I understand that sometimes the users need to deposit their coins in a hurry and can't wait to make use of the purchasing opportunity. But I would recommend to always keep a small amount of BTC in the exchange wallets. So when a new altcoin is listed, you don't have to run around to make the arrangements. I know that very few people would like to store their BTC in exchange wallets, but you can decide on the amount in this case, and withdraw the coins, if you think that the exchange is in trouble.

[CryptopreneurBrainboss]

I understand that sometimes the users need to deposit their coins in a hurry and can't wait to make use of the purchasing opportunity. But I would recommend to always keep a small amount of BTC in the exchange wallets.

Here's the catch, the most popular advice has always been, never to store coins on exchange which is great assuming your sole purpose of purchasing is for investment and long term holding purpose. But if you're interested in scalping or making profits off this new listing then keeping some funds for n exchange is then highly recommended. (Note: this is a very risky way of ttrading as price volatility is usually at its peak)

Newbie can easily get confused/misunderstand information which is why instead of differentiating the times funds can be kept on exchanges, the advice is simplified to not keeping coins on exchange at all. The idea behind this advice is not to use exchange as wallets.

But just as you said, funds that are intended to be used for trading is ok keeping them their but it shouldn't be funds you won't be comfortable losing as it's no news exchanges are vulnerable to hacks and centralized features like fund seizure etc.

[hardiksoni966]

bitcoin is in a bull run and more users are rushing to use the digital currency, bitcoin transaction fees are shooting up again. Lately, the average bitcoin transaction fee has fluctuated between $24 and $31, according to data provider Bitinfocharts.