High transaction fees affects those who DCA

[dunfida]

I think the high fee is natural, it comes from taproot and ordinal's boom, it means bitcoin has more utility to use, for bitcoin this cannot be changed, I think it is characteristic of bitcoin - POW. it is also the reason that many bitcoin l2 projects are building to compensate and increase the opportunity to use bitcoin with lower transaction fees. it will be like ETH with polygon or Arb

4 hours ago when i did make out some transactions on which i was indeed happy that the fee is already sitting around 10sats/byte but now when i wake up then boom another 100sats/byte
transactions again. Well, this isnt always talking about those ordinals thing but rather this is something that could also happen whenever there's some spike that do happen in the market.
Tons of trades or transactions been done specially into those who are really that trying out to move their bitcoins into specially now that it did able to hit up 50k on which
this isnt really that bad on making some decisions on selling out your coins i should say. When speaking about DCA then it wont really be a problem if your funds is on exchangers on which
you would really be able to save up yourself on such transactions but we know on how risky on leaving your funds on an centralized exchange and this is why i do understand
on why people would be actively be sending out their coins into their own wallets.

[1715284248]

1715284248

[Abiky]

We'll see fees move high & low but they'll have to go down or else it's going to be expensive sending micro payments. There's cheaper options to save fees but you'll want to hold your bitcoin if you can.

I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go. Thank goodness we have a variety of altcoins to choose from, or we would've been stuck waiting for fees to go down. Would you imagine Bitcoin being the only Blockchain network in the world? It wouldn't be able to meet the demands of everyday people.

Hopefully, developers continue working on scaling BTC to make it a "force to reckon with". As long as Bitcoin stays decentralized, there should be nothing to worry about.

[thecodebear]

While I don't recommend unnecessarily leaving funds on exchanges, you're option here is to not withdraw the BTC after every DCA purchase. Instead, probably do the withdrawals biweekly/monthly(whichever you're comfortable with). That way, you'll significantly decrease your fee payments.

This is the obvious answer.

People should not leave their bitcoin on an exchange to sit for a long time because there is always the possibility of the exchange getting hacked at some point. And in general you should be in control of your bitcoin since Bitcoin allows you this ability. But leaving coins on an exchange for a matter of weeks or a few months is extremely low risk if you are using a reputable exchange. If the ratio of your fee-to-DCA is high enough that you are complaining about it you should just move your coins off the exchange less often. Problem solved. Also that way you use a bit less block space and make the blockchain ever so slightly cheaper for everyone else.

There really is no reason to move off-exchange every single time if you are DCA'ing. Assuming you're not using some shady exchange, which would be a much more serious problem, just do it once a month or once every couple months instead of every week.

Always use common sense. Don't just blindly follow rules people say. Yes you should control your bitcoin yourself, but that doesn't mean you can never make use of an exchange's custody services. If you're literally hurting your finances just to follow a rule of thumb then you are doing things wrong.

Just like you're not going to buy a $5 coffee using an on-chain transaction paying a $3 fee, you're gonna use the LN and pay a <1 cent fee, you shouldn't be making an on-chain tx for every single DCA if you're only DCA'ing like $50 or something at a time.

[Troytech]

We'll see fees move high & low but they'll have to go down or else it's going to be expensive sending micro payments. There's cheaper options to save fees but you'll want to hold your bitcoin if you can.

I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network".

For now true but who knows what may happen in the nearest future in bitcoin technology and how advanced it would be, if bitcoin would ever achieve what satoshi envisioned it to which a electronic p2p means of exchange without trusted parties or middle men, bitcoin right now is more like an investment asset and serves better for such purpose, many would not even like to store value in it cause its still quite volatile, I don't ever think in the perspective of bitcoin replacing fait but in the future we might have many means of exchange and bitcoin could be one of them even if not with the lowest gas fees but maybe more affordable, like bringing it to a lowest minimum of 1 dollar or maybe cents.

Scalability would not always be a problem for bitcoin, much can happen in years to come, no one really knows what to expect.

While I don't recommend unnecessarily leaving funds on exchanges, you're option here is to not withdraw the BTC after every DCA purchase. Instead, probably do the withdrawals biweekly/monthly(whichever you're comfortable with). That way, you'll significantly decrease your fee payments.

This is the obvious answer.

People should not leave their bitcoin on an exchange to sit for a long time because there is always the possibility of the exchange getting hacked at some point. And in general you should be in control of your bitcoin since Bitcoin allows you this ability. But leaving coins on an exchange for a matter of weeks or a few months is extremely low risk if you are using a reputable exchange. If the ratio of your fee-to-DCA is high enough that you are complaining about it you should just move your coins off the exchange less often. Problem solved. Also that way you use a bit less block space and make the blockchain ever so slightly cheaper for everyone else.

There really is no reason to move off-exchange every single time if you are DCA'ing. Assuming you're not using some shady exchange, which would be a much more serious problem, just do it once a month or once every couple months instead of every week.

Always use common sense. Don't just blindly follow rules people say. Yes you should control your bitcoin yourself, but that doesn't mean you can never make use of an exchange's custody services. If you're literally hurting your finances just to follow a rule of thumb then you are doing things wrong.

Just like you're not going to buy a $5 coffee using an on-chain transaction paying a $3 fee, you're gonna use the LN and pay a <1 cent fee, you shouldn't be making an on-chain tx for every single DCA if you're only DCA'ing like $50 or something at a time.

Your quite right, just keep your bitcoin or holdings on reputable exchanges like binance untill you have accumulated quite enough for up to 3 months then move to your hard wallet or any self custodian means you chose.

I myself I normally don't do a lot of transactions with crypto except my weekly DCA which could max up to 100$ at times and 20$ at times, so I just keep my holdings on the exchange untill it's up to 500$, then I move it to my ledger hard wallet, safe and easy.

But remember not to store or hold on exchanges, not advisable, potential hack may occur and you have just lost your holdings.

[STT]

I was going to comment also you could consolidate a larger amount within an exchange.  Not everyone is comfortable holding on an exchange but the point would be to move off the amounts of a regular basis just not everyday but weekly or monthly should be enough.   Thats a common enough thing to do to get around the fees dilemma.

Its worth still buying over time as some of Bitcoin direction cannot be known for sure, now is a good example.  From experience I would call this a bullish accumulation and probably price action does attempt to break upwards from this temporary hold below the ATH.

The majority of volume is below the ATH not right at the peak, its mostly a psychological barrier or ceiling we face.   For that reason I dont think it will hold but also this premise must be proven, the only certain way is to test and find this level of 68k or nearby as a support level.   That could take months I'm not sure, hence DCA could be the best thing with such uncertainties.

[Abiky]

I was going to comment also you could consolidate a larger amount within an exchange.  Not everyone is comfortable holding on an exchange but the point would be to move off the amounts of a regular basis just not everyday but weekly or monthly should be enough.   Thats a common enough thing to do to get around the fees dilemma.

Its worth still buying over time as some of Bitcoin direction cannot be known for sure, now is a good example.  From experience I would call this a bullish accumulation and probably price action does attempt to break upwards from this temporary hold below the ATH.

The majority of volume is below the ATH not right at the peak, its mostly a psychological barrier or ceiling we face.   For that reason I dont think it will hold but also this premise must be proven, the only certain way is to test and find this level of 68k or nearby as a support level.   That could take months I'm not sure, hence DCA could be the best thing with such uncertainties.

Exactly. Making a batch transaction or sending BTC occassionally would be the best way to save money on fees. If you want regular payments, you'd need to either use the LN or wait until fees go down. Fingers crossed developers will come up with on-chain solutions to prevent a disaster in the long run. At least, you can trade BTC on CEXs without paying high fees (until you make a withdrawal).

Bitcoin's current situation will force many to trust a custodian (third-party) with their money. Could this be a tactic from mainstream governments to prevent self-custody of BTC? Only time will tell. As long as decentralization wins, there should be nothing to worry about.

[arabspaceship123]

Did you send bitcoin recently because I didn't look at mempool for latest fees stats. They can't be high like before but if fees are high ppl have to wait until it's cheaper to send. Isn't it a good idea for ppl to apply same saving to buy process on crypto which isn't expensive because bitcoin's getting hard to buy for ppl who've got limited budgets.

[Yogee]

Did you send bitcoin recently because I didn't look at mempool for latest fees stats. They can't be high like before but if fees are high ppl have to wait until it's cheaper to send.

You can send and confirm in ~10 minutes with a fee around ~13 to ~20 sats/vb based on the last six blocks. That can be considered cheap nowadays. The problem with the OP is he's withdrawing from centralized exchanges and you know that they usually charge higher than that. Their lowest transaction fee could be set at 40sats/vb so you still end up paying more than the high priority on mempool.

Isn't it a good idea for ppl to apply same saving to buy process on crypto which isn't expensive because bitcoin's getting hard to buy for ppl who've got limited budgets.

Buy sats.

[Abiky]

Did you send bitcoin recently because I didn't look at mempool for latest fees stats. They can't be high like before but if fees are high ppl have to wait until it's cheaper to send. Isn't it a good idea for ppl to apply same saving to buy process on crypto which isn't expensive because bitcoin's getting hard to buy for ppl who've got limited budgets.

Mempool shows a reduction in BTC network fees over the past month. I guess the Ordinals hype has come down to a halt. At least, temporarily. Now with the persistent FOMO because of ETFs accumulating large amounts of BTC, we should expect fees to increase all over again. As soon as you see the opportunity, open a LN channel with a low BTC fee, and stay there until the "dust settles". You will be enjoying cheap fees and blazing-fast speeds on the LN even if on-chain activity skyrockets.

And if you want to profit from the hype without needing to pay high fees, then leaving your coins in an exchange for trading (temporarily, of course) would be the way to go. Just spend your money wisely, and there should be nothing to worry about.

[MFahad]

And if you want to profit from the hype without needing to pay high fees, then leaving your coins in an exchange for trading (temporarily, of course) would be the way to go. Just spend your money wisely, and there should be nothing to worry about.

That is probably the best way to deal with high transaction fees if there is network congestion but people still need to keep buying Bitcoin. They should use a trusted centralized exchange, keep buying and storing in their account, keep it secure with 2FA and every possible security option they are given by the platform, and withdraw to their non-custodial wallets only when the fees are back to normal which happens after some time as we have seen.
Someone will surely have to pay a lot of money in fees if they keep doing DCA and withdrawing every time from the exchange platform to their wallet if the fees are high, so one needs to do what's better in that situation and the solution is to buy and wait.

[Julien_Olynpic]

DCA is a good strategy. But in the case of Bitcoin, it does require a lot of fees in terms of fees. But everyone knows the solution to this issue; it all depends on how you prioritize. The options are as follows: 1. Increase the timeframe. Instead of weekly purchases, make monthly or quarterly or even semi-annual purchases. There won't be a big commission here. 2. Use Bitcoin equivalents rather than real Bitcoin. For example, lining-bitcoin or sovrin-bitcoin. Or wrapped Bitcoin on EVM networks such as Polygon or Arbitrum. Or BNB. This will really allow you to save on fees. But you have to pay for everything. The second option is bad for those who prefer to deal with real (native) bitcoins.

[Abiky]

DCA is a good strategy. But in the case of Bitcoin, it does require a lot of fees in terms of fees. But everyone knows the solution to this issue; it all depends on how you prioritize. The options are as follows: 1. Increase the timeframe. Instead of weekly purchases, make monthly or quarterly or even semi-annual purchases. There won't be a big commission here. 2. Use Bitcoin equivalents rather than real Bitcoin. For example, lining-bitcoin or sovrin-bitcoin. Or wrapped Bitcoin on EVM networks such as Polygon or Arbitrum. Or BNB. This will really allow you to save on fees. But you have to pay for everything. The second option is bad for those who prefer to deal with real (native) bitcoins.

You can always do DCA through a crypto exchange that accepts deposits from the Lightning Network. Bitstamp is one of them. Fees on the LN are neglible, making it extremely-convenient for day-trading and micropayments. The only downside is that you'd need to pay a high on-chain fee once. It's the common rule of L2 networks.

Hopefully, BTC fees will decline as developers introduce a series of network upgrades to "tackle" the problem. Just keep buying, "hodling", and forget about the rest.

[Lanatsa]

DCA is a good strategy. But in the case of Bitcoin, it does require a lot of fees in terms of fees. But everyone knows the solution to this issue; it all depends on how you prioritize. The options are as follows: 1. Increase the timeframe. Instead of weekly purchases, make monthly or quarterly or even semi-annual purchases. There won't be a big commission here. 2. Use Bitcoin equivalents rather than real Bitcoin. For example, lining-bitcoin or sovrin-bitcoin. Or wrapped Bitcoin on EVM networks such as Polygon or Arbitrum. Or BNB. This will really allow you to save on fees. But you have to pay for everything. The second option is bad for those who prefer to deal with real (native) bitcoins.

This is why it would really be that important that you should be having some reserved USDT on your exchange wallet even though its not recommended to store tons but this is the only method
that i do make use through years when it comes on talks about DCA'ing on which im trying out to avoid those network fees but actually it isnt really that much on which based up on my awareness i have seen about
when your funds is really that inside on exchangers on which you could really just that simply make out some purchase whenever the market would really be having its correction and you do
see the opportunity for you to buy cheap.

It is really that giving out that huge hindrance whenever you do see those network fees to be that high when making up some transaction specially if you are a type of
investor which does have only that sufficient amount of money for you to buy up with. If you are some sort of whale then these fee things or concern wont
really be that much of an issue for you.

[Stablexcoin]

And if you want to profit from the hype without needing to pay high fees, then leaving your coins in an exchange for trading (temporarily, of course) would be the way to go. Just spend your money wisely, and there should be nothing to worry about.

That is probably the best way to deal with high transaction fees if there is network congestion but people still need to keep buying Bitcoin. They should use a trusted centralized exchange, keep buying and storing in their account, keep it secure with 2FA and every possible security option they are given by the platform, and withdraw to their non-custodial wallets only when the fees are back to normal which happens after some time as we have seen.
Someone will surely have to pay a lot of money in fees if they keep doing DCA and withdrawing every time from the exchange platform to their wallet if the fees are high, so one needs to do what's better in that situation and the solution is to buy and wait.

I don't believe that is a good idea to leave funds in a centralized exchange for quite some time. The transaction fee issues have started again and I think the best thing now for investors who are dcaing is to keep their funds i fiats for an extra week so that they can combine this week and next week fitat that is supposed to be used for DCA to invest during the month end or next weekend. By this way the percentage remains the same only just the time period would vary to bi weekly or monthly depending if the high transaction fees persist.

[Strongkored]

I don't believe that is a good idea to leave funds in a centralized exchange for quite some time. The transaction fee issues have started again and I think the best thing now for investors who are dcaing is to keep their funds i fiats for an extra week so that they can combine this week and next week fitat that is supposed to be used for DCA to invest during the month end or next weekend. By this way the percentage remains the same only just the time period would vary to bi weekly or monthly depending if the high transaction fees persist.

Leaving funds in CEX is never recommended, but changing it by buying to bi-weekly or monthly, might also make us lose the opportunity to buy it when the price is low, because in recent times the price changes have been quite fast, so in my opinion we still do DCAing as usual but withdrawing Bitcoin has changed to bi-weekly or monthly, but have the current conditions made CEX increase their withdrawal fees? If the CEX that we usually use doesn't increase the withdrawal fee then you can still make withdrawals every time you finish buying, the problem is that the CEX increases the withdrawal fee and when I checked at the exchange I used to make a transaction, yes they increased it and that's an unreasonable amount because I have to pay around $50 for one withdrawal, so it's better to keep it in CEX until it returns to normal because if it's for the short term I don't think it's a problem but not for the long term and increase the security of our CEX account.

[Kelward]

We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.

[poodle63]

I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go.

we don't expect the fee to be going down when there's just so many things are gonna be flooding the bitcoin blockchain, before it was BRC20 and that successfully caused the fee to be high, now its runes, well to be honest i'm expecting something other than brc20 and runes in the future that could cause transactions flood again to be honest.

We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.

honestly i'm thinking of when DCA-ing an asset we could just diversify the use of exchange, its to mitigate collapse like what FTX has experienced back then, if worse come to worst there are still other exchange available and more likely our assets are safe in the other that doesn't get affected, it might seem impractical for many people, the alternative might be just buying bitcoin wrapped in other blockchain.

[Marvell1]

I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go.

we don't expect the fee to be going down when there's just so many things are gonna be flooding the bitcoin blockchain, before it was BRC20 and that successfully caused the fee to be high, now its runes, well to be honest i'm expecting something other than brc20 and runes in the future that could cause transactions flood again to be honest.

Before it was BRC and now it's Rune, I'm pretty sure things won't stop here and more spam will be generated, we should really adapt to this. But I still don't understand why the developers haven't come up with a solution so far, are they looking for a way or do they not care about this?

We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.

honestly i'm thinking of when DCA-ing an asset we could just diversify the use of exchange, its to mitigate collapse like what FTX has experienced back then, if worse come to worst there are still other exchange available and more likely our assets are safe in the other that doesn't get affected, it might seem impractical for many people, the alternative might be just buying bitcoin wrapped in other blockchain.

Storing bitcoins on exchanges has never been advisable, but I also think it is a temporary solution for the time being with high fees. Distributing bitcoin across multiple exchanges is also not a bad idea, this will also have risks but the risks will be dispersed if the exchange collapses or is hacked. I will consider this idea if transaction fees do not decrease.

[BABY SHOES]

We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.

Do you hold fiat for a month and then buy bitcoin and withdraw it? Or buy bitcoin every week and then withdraw the BTC once a month? I have the second method instead of holding fiat for 1 month.
But this is our plan about DCA that is still on the run and honestly still relying on exchanges to buy bitcoin because it's easier for us to deposit fiat in our local currency.
There is also storing assets on the exchange for a month for me it does not matter as long as it is not too long

[Dailyscript]

We're still facing the high transaction fees again, and it seems like it's something that we have to get used to that it must happen periodically when the mempool is congested, so every Bitcoin holder should have a plan b when it occurs. In your own case as you're doing DCA method, I think that it's best if you can be disciplined and hold your weekly earnings for a period of one month before sending it, to minimize the amount of the fees, since you'll pay about the same fees if you're sending it weekly. It's not advisable to leave your coins in the exchange and relax.

Do you hold fiat for a month and then buy bitcoin and withdraw it? Or buy bitcoin every week and then withdraw the BTC once a month? I have the second method instead of holding fiat for 1 month.
But this is our plan about DCA that is still on the run and honestly still relying on exchanges to buy bitcoin because it's easier for us to deposit fiat in our local currency.
There is also storing assets on the exchange for a month for me it does not matter as long as it is not too long

I think holding the fiat for a month is a worst idea. If so then that is not a DCA  strategy. This is because if the method is to buy every week then he should be buying the Bitcoin every week in the CEX and withdraw it to the wallet every two weeks or monthly since the fees are high. Now the fees are high it is cool for every investor to follow this strategy so that they wont spend all their bitcoin holdings on transaction fees. Definitely before the end of the month the fees would have been adjusted to normal.

But there is one problem. If someone is earning low income from 50$ every week and uses 30% of this income to buy Bitcoin in the CEX. If the price of Bitcoin drops he might end up losing his money to 0$ depending on how dip bitcoins goes sine the bitcoin is small.