High transaction fees affects those who DCA

[taufik123]

-snip-
But overall this is an issue that needs to be addressed. A lot of people wanted bitcoin to become a currency for our day-to-day transactions. I used to buy mobile loads using bitcoin. But at the current network fees, it is becoming impossible, especially on small amount transactions. And without a solution, altcoins will continue to flourish which I don't mind either as long as it is as secure as bitcoin.

Currently, it is not possible to use it as an everyday transaction because the gas fee required is quite large, and this network congestion makes the fee even higher.

I am now also stuck, and it has been more than 6 hours since the transaction I made using a

fee of 111.51 sat/vB, $6.8
Transaction status Waiting for confirmations 0 of 6
Queue: 17081 of 232792
Est. Time to 1 confirmation: in 1 day

It will take a while, but I just leave it alone.
Especially if the transaction is small, it will not be worth the fee needed.

But actually not without a solution, the Bitcoin Lightning Network can actually be the right solution, but it is still under development and the support of the Lightning Network is also not evenly distributed on all exchanges because there are rules for using the Lightning Network.

But if you want to switch to altcoins to avoid network congestion, Options on ETH might be better or for faster and cheaper networks are BSC and TRON.

[fzkto]

At least the transaction fees are quite low compared to the past days but yes, still was not good looking and disappointing since it was not the normal trx fee we see. We are not sure how long this situation went okay but we have no option other than just wait or have to pay it. Yes, it was a good decision to just buy BTC in bulk like doing this once a month than paying $3 - $10 every week.
I've noticed that there is a time when the transaction fee is low, we can take advantage of it. We just have to monitor the market changes and timing.

For those who strictly adhere to a DCA strategy, the fees are a pain in the ass without a doubt. It depends on the amounts invested every single time and also the frequency, but I think for those who decide to stick to DCA, any excessive recurring fee isn't nice...

I know this has been shared somewhere else a couple of times, but if it helps someone to understand how to time transactions and how to best choose any fees they are fine with, this website is a helpful source.

What are the fees currently from the most popular exchanges you guys are using? Are most of them flexible or are there exchanges with fixed high/low fees?
 

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

[MainIbem]

It all depends on the centralized exchange you using for your DCA for Binance I don't you will spend that much for withdrawal and besides I won't encourage you to keep making every single withdrawal whenever you do DCA of just $10 per week it reduces your accumulated funds. So, the best option is to hold to some certain amount maybe from 300$ and above then you can withdraw it and make expenses in just a fold or in every 2 to 3 months but I believe Binance charges not less than $2 or $3 for BTC withdrawal Depending on the price at the moment.

[Wiwo]

. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

To be honest, bitcoin transaction fees are becoming quite annoying for small investors like us. Today I just transferred a small amount of my bitcoin to an exchange to sell for fiat and if I remember correctly with 2 transactions, I lost almost $6 and I'm uncomfortable with the fees. Yes, it's not a large amount of money but $6 for transaction fees is something that makes me feel unsatisfied. I usually don't sell my bitcoins but today I had urgent business so I had to sell some and I was quite surprised at the fee I had to pay.

What we are currently experiencing with bitcoin network fees really sucks and we have no alternative that an totally solve this problem even looking at long term solutions,  I have being having problems moving my Bitcoin around since the past 3 days now and reasons being that the transaction fees are too high considering the amount I am sending, sometimes I which we have an immediate solution to it because this hyke in fees is making Bitcoin unusable for small investors.

And even the big bag Bitcoin holders also suffer from the same since they have to pay high fees just to send Bitcoin around because the amount in fees can be the same as what it used to be before the network hykes,  and no matter the amount the hold it will impact so everyone in the industry is really facing it in this period.

[Kelvinid]

I see the current situation has faced struggles for all of us, many people can send/withdraw their funds due to high fees. Last 2021 we experienced a surge in fees, we can check it here https://ycharts.com/indicators/bitcoin_average_transaction_fee but it was just a short time. Unfortunately, what we have now is quite different as it is already 2 months (if not mistaken) and we are still uncertain how long it will last.

If we are doing DCA, we'd rather not do it now, better save it and wait for the fees to calm down.

[Davian144]

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

[OgNasty]

Transaction fees have gotten so high that they’re effecting everyone, not just those dollar cost averaging now. All you can really do is keep stacking and letting other entities hold your funds until fees become reasonable again. Pretty much the entire Bitcoin ecosystem is grinding to a halt right now. Hopefully things get better. Without raising the blocksize limit, hope is all we have.

[GeorgeJohn]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

The best method is holding your coin and it should be the method for now until when the charge of bitcoin will come down, I know quite well, that what will lead people right now to be holding their bitcoin will be as result of high fee, like if you want to make away with payment of high fee by transferring it to an exchange from signature payment, you have to change your wallet address to exchange address so that when you receive a payment you can easily exchange it safely without any charge

[milewilda]

The current Bitcoin fees wouldn't have mattered to me because I am not selling, but the fees do matter because I DCA, and I don't want to leave my coins in the centralized exchange. This month, I have spent roughly $5 to $10 in transaction fees when I DCA every week. It may seem small, but in my country, it's enough to cover my feeding expenses for a month cumulatively.

I discussed this issue with my friend, and he suggested I use an exchange that utilizes the Lightning Network. According to him, this would help me get off with no fees any day. While I'm considering this alternative, another option is to wait for a month or two, then use the amount we kept for weekly DCA, hold it for a month or two, and lump sum. This way, i would incur just a one time fee. What are your thoughts on this? I feel like I may use the money kept for DCA for other expenses.

The best method is holding your coin and it should be the method for now until when the charge of bitcoin will come down, I know quite well, that what will lead people right now to be holding their bitcoin will be as result of high fee, like if you want to make away with payment of high fee by transferring it to an exchange from signature payment, you have to change your wallet address to exchange address so that when you receive a payment you can easily exchange it safely without any charge

For those who do have other source of funds or have some altcoins in their stashes and tending to have some gambling or trying out to make trades then high fees wont be a problem yet most of coins (except EVM's)
does have that high transaction cost and for those people who do have only less money will really be seeing this to be a non pleasing situation on which it would really be just that right that you would really just simply hold with those coins, but what if you do really need money? whether you do want to cash out because it is something important? Not all would really be always having that fiat to make use of.
This is why it would really be leading you have on no choice but to deal with those high fees.

For those people who do have tons of money then it wont be an issue but we know that not all would really be that rich who dont mind about fees. It do really sucks and really that hassle
when we do have this network clogged or traffic. Although it doesnt really happen all the time but once it do happens then it would really be that too hassle.
You would really be just needing to adjust or finding up ways for you to lessen fees or wouldnt really be doing any transactions at all.

[buwaytress]

I know it's a late post but I just realised that my style of DCA enjoys an added benefit during these high-fee periods. I don't buy, I earn (freelance, invoice in BTC) so I generally do get paid on time all the time, the fees don't account for much overall and the client pays.

However, now that the congestion has been prolonged beyond expectations, there are some (small) issues):
- clients now asking for alternative like stablecoin. $50 suddenly feels too expensive because they can't really control inputs. I've had to give in this month already
- My inputs are piling up. I did consolidate a while back and used to do so often but I've been holding off... meanwhile my inputs are adding up. Not worried at all, of course, I always wait. But can imagine smaller and more frequent DCAers are holding their breath as tx sizes go up.

[EarnOnVictor]

-snip-
But overall this is an issue that needs to be addressed. A lot of people wanted bitcoin to become a currency for our day-to-day transactions. I used to buy mobile loads using bitcoin. But at the current network fees, it is becoming impossible, especially on small amount transactions. And without a solution, altcoins will continue to flourish which I don't mind either as long as it is as secure as bitcoin.

Currently, it is not possible to use it as an everyday transaction because the gas fee required is quite large, and this network congestion makes the fee even higher.

I am now also stuck, and it has been more than 6 hours since the transaction I made using a

fee of 111.51 sat/vB, $6.8
Transaction status Waiting for confirmations 0 of 6
Queue: 17081 of 232792
Est. Time to 1 confirmation: in 1 day

It will take a while, but I just leave it alone.
Especially if the transaction is small, it will not be worth the fee needed.

But actually not without a solution, the Bitcoin Lightning Network can actually be the right solution, but it is still under development and the support of the Lightning Network is also not evenly distributed on all exchanges because there are rules for using the Lightning Network.

But if you want to switch to altcoins to avoid network congestion, Options on ETH might be better or for faster and cheaper networks are BSC and TRON.

Your quoted fee is very small compared to what I have been seeing since yesterday, this is why I have not moved my BTC till now. The fees can be very discouraging and annoying at times and I don't see the way it will not affect businesses negatively if it continues like this. It's a very bad discouragement for those who also want to newly participate in Bitcoin. No wonder that people are resorting to alternatives, they cannot continue with this when other coins are charging a very ridiculously low amount of transaction fees. Although this can't affect the main OP much, he should only try to know the right time to move his coin at the best price and that ends it.

Also, I read of the option you suggested, I think it has not gotten to that when it comes to personal Bitcoin transactions, but when it is a company sending it directly, there will be a problem. If it is a personal transaction, I urge the person to use the free service of ViaBTC, which is what everybody is using now. It doesn't matter how many times the guy uses it and it doesn't record the user profile but only the transaction involved. Once the transaction has a minimum fee required, then it will be processed. The ones I have done were processed within 1-2 hours of using the service and so long as they mine pool, it will be done. However, the least I have tried with them is 18 sat/vb transactions, I don't expect anyone to also go lower than that. This is a small amount that anyone can cheerfully pay at this congestion time.

[AakZaki]

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

in the end everything will be fine and those who panic too much about fees that are too high certainly don't have a strong stance to stay with Bitcoin. if the costs get higher I just stop and observe until the costs return to normal. DCA certainly doesn't have to always be on time, also looking at the condition of the Bitcoin network. if it's too expensive then collect it and buy it when it gets better.

[Lanatsa]

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

in the end everything will be fine and those who panic too much about fees that are too high certainly don't have a strong stance to stay with Bitcoin. if the costs get higher I just stop and observe until the costs return to normal. DCA certainly doesn't have to always be on time, also looking at the condition of the Bitcoin network. if it's too expensive then collect it and buy it when it gets better.

Its not that they dont really have a strong stance about Bitcoin, it is really just that we arent get used to it. I do agree into those sentiments above that this isnt something that it is really that too often if we do speak about network congestions. There might be some time but it isnt something that we can really be able to experience every now and then. Recently we've been experience twice conditions on which the
network had been spammed out and it do usually decrease or goes back to normal after a week,and here comes now that the network congestion is getting worst again and again.
Some do point out those fingers with those BRC20 related things.

Hope that it would be solved out soon on whatever problems that we are experiencing today. I cant really deny that its quite hassle when you do make out some transaction.
We do know that not all would be holders, and some are really just that making those active transactions specially from CEX into your personal wallet or
even just doing some gambling. Moment of having breaks takes longer just waiting for the fees to subside.

[Coyster]

in the end everything will be fine and those who panic too much about fees that are too high certainly don't have a strong stance to stay with Bitcoin. if the costs get higher I just stop and observe until the costs return to normal. DCA certainly doesn't have to always be on time, also looking at the condition of the Bitcoin network. if it's too expensive then collect it and buy it when it gets better.

This is not about a strong or weak stance in the Bitcoin network, it is basically a fact that Bitcoin transaction fees is so high right now that it is making Bitcoin practically unusable. Nobody is panicking because of fees, people are just complaining or stating how much they have to pay in fees to send Bitcoins to someone or to use it for some other purpose. Whilst some people can wait for when the fees would drop, not everybody has such privilege, some want to move money quickly or convert to fiat for something important. I know there's prolly nothing you or i can do to rectify this, but i wouldn't slag off people who are moaning about it.

[YUriy1991]

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

If you look at the timing, things are still not back to normal as usual because the prospect of Bitcoin movement began to increase after the previous decline and continues until this moment,  I think the reduction in high transaction costs will occur if there is congestion and this is very relevant and fundamental because the problem of transaction congestion is often related to the capacity of the network itself.

[ajiz138]

Currently, it is not possible to use it as an everyday transaction because the gas fee required is quite large, and this network congestion makes the fee even higher.

It can be imagined that if bitcoin is used for daily transactions with fees that must be spent above $10 at least, people will be reluctant to use this kind of transaction.

fee of 111.51 sat/vB, $6.8
Transaction status Waiting for confirmations 0 of 6
Queue: 17081 of 232792
Est. Time to 1 confirmation: in 1 day

Many people with transactions are stuck at the moment, they choose a lower sat / vB as a result the confirmation is long, if this is not for emergency needs then wait more patiently, because I was stuck in this transaction a few days ago.

But actually not without a solution, the Bitcoin Lightning Network can actually be the right solution, but it is still under development and the support of the Lightning Network is also not evenly distributed on all exchanges because there are rules for using the Lightning Network.

Now that the bitcoin network is still under development, it is difficult for many people to switch to LN, some exchanges also set minimal deposits compared to the onchain network.

But if you want to switch to altcoins to avoid network congestion, Options on ETH might be better or for faster and cheaper networks are BSC and TRON.

Actually, the ETH network is also expensive Gwei now $2, especially if you want to send tokens from the ETH network even higher gwei.
Because this is the DCA of bitcoin, it is impossible for them to switch to altcoins.

[OgNasty]

Another day and the mempool is even more full. Currently it costs almost double what it did yesterday to get a transaction onto the blockchain. I had assumed this backlog would have been getting worked through by now but it is still getting worse. People are having to spend a great deal to get anything through the network right now.

[Poker Player]

Another day and the mempool is even more full. Currently it costs almost double what it did yesterday to get a transaction onto the blockchain. I had assumed this backlog would have been getting worked through by now but it is still getting worse. People are having to spend a great deal to get anything through the network right now.

Yes, it is. About 300 sats/vByte for confirmation in the next block, which affects those who do DCA, who if they buy small amounts have no choice but to reduce the frequency to reduce the proportional impact of fees, as discussed.

At some point the fees will have to come down, what we don't know is when. There seems to be a lot of retarded people with money willing to pay a lot to put their junk on the blockchain.

[el kaka22]

Just do it slower and there won't be a problem, too many people try to do it quickly and all the time which causes the trouble. There are way too many people who try to make it work one way or another and they are the real trouble here, they need to do a lot better in order to make sure that they are getting a good return. If you get money once every week and try to buy bitcoin once every week then yeah you are going to be hurt, and depending on the amount of money then maybe once every month as well.

However, if you could wait until you have decent amount of money, then you could do it then, which means that you need to learn to wait. Plus, it is not transaction to buy bitcoin at some exchange, so it shouldn't really be a problem.

[fzkto]

High fees on the bitcoin blockchain have happened occasionally. But it hasn't been prolonged. Although now the commissions are really unreasonably high. I hope that the hype around brc-20 tokens will stop and the commissions will become small again.

Transaction fees will always change and will always become smaller when Bitcoin price volatility begins to improve and does not continue to increase as it is now. Because when Bitcoin's price continues to increase, it can also affect the size of transaction fees on the Bitcoin network, making some people complain about it. However, I also believe that things will not be like now because the decrease in transaction fees will return to normal again when there are not too many transactions at one time.

The price of bitcoin and the cost of transactions do not correlate much. Now the cost of commissions has gone up because of the popularity of brc tokens. You are right to say that the price of commissions will be lower when the bitcoin blockchain is not as busy as it is now. But for that we need improvements in the code.