So what is best way to calculate fee? whenever I try to send something from my electrum I have to pay in sat/byte. All i know is scroll it to right to quick and fast and scroll it to left for slow settlement time.
Since you're using Electrum, the default "
ETA" slider already did that for you.
Its estimates are close at best to its intended target block (
Within 1 block, 2 blocks, etc...), one block is an average of 10 minutes of waiting.
You can also switch to "
mempool" slider for better control since you can specifically target to position your transaction within the maximum block size, but it depends on the timing.
You can set it to "
1mb from tip" or lower 'mb from tip' and it'll be in a good spot;
But as I've said, if you timed it bad when a lot of transactions are broadcasted right after it, more high-feerate transactions could boot it out of that "
1m from tip" position.
The catch is, it's not possible to compute the "
correct" fee rate because mempools and mining are unpredictable.
So it's up to you if you want to pay more or less than the suggested fee rate.
Just wanna know what this sat/byte is and how to set it effectively.
That's the "
fee rate", as you can see in Electrum's 'New Transaction' window, it's multiplied by the transaction's total size to get the "
absolute fee" (
total fee).
The larger the transaction's size is (
not the amount), the higher the 'absolute fee' will be, so be careful on setting high 'fee rate' on transactions with multiple inputs.
Enabling "
Show inputs and outputs" in 'New Transaction' settings is useful in this case so you can see how many inputs you're trying to spend.
Also, the term sats/byte is used mainly for legacy addresses only. As we are shifted to segwit you'll see the term "sat/vB" used more often.
Take note that in Electrum, the fee rate is actually shown as "
sat/byte" but the actual calculation behind it is "
sat/vB".
The developers didn't changed it after SegWit update because they believe that changing that will confuse the users,
here's the reference:
https://github.com/spesmilo/electrum/issues/6961#issuecomment-765541935
