High transaction fees affects those who DCA

[Rruchi man]

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

My thoughts exactly are that these is an example of a challenge to DCA-ing that an investor who is committed to investing in bitcoins should be ready to face when they plan to DCA. As an investor you should not allow the high transaction fees affect your investment plan, you have to find a way around it else you will regret it.

If you know that keeping the money meant to DCA while tx fees are high will be difficult for you, give it to someone trusted who can hold money for you.

[sunsilk]

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

My thoughts exactly are that these is an example of a challenge to DCA-ing that an investor who is committed to investing in bitcoins should be ready to face when they plan to DCA. As an investor you should not allow the high transaction fees affect your investment plan, you have to find a way around it else you will regret it.

If you know that keeping the money meant to DCA while tx fees are high will be difficult for you, give it to someone trusted who can hold money for you.

It's because that we're like that. If we're not going to spend our money for DCA as soon as possible, the chance of it being spent for something else or any othe expenses is very likely.

That's why if you have spare money and you want to DCA it and you want to avoid the fees, there is no other option that's left for you. I'd also gonna try to wait for the network to get some breathe out of the clog that it has got.

But considering that $2.67 is the top priority for doing a transaction as of this moment. I'd probably DCA and have a minimum like $50 and above.

[philipma1957]

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 Mempool congestion has been an issue and who knows when the fees will be beaten lower to accommodate reasonable fees. This is a discouragement truly but is not the first time that we will experience this kind of situation, which is why I know it's not going to be the last.

You and your friend have also made the right suggestions, so don't be discouraged, I also advise you to continue to DCA without minding the situation. You can use your Debit/Credit card, P2P, or Lightning network if the money is not big. But if the money is big enough, I wouldn't mind the network fee if I were you, but I will be DCAing once a month.

This would have saved you a lot of money if followed and could be paying barely $3+ for the transaction a month if you study the Mempool correctly.

If you notice we are settled in solidly around 45 sats.

So if fees are always at 45-50 sats.

People will have to adapt usage of side coins.

and LN chain .

I think 40 sats could be forced for long time periods.

[YUriy1991]

This would have saved you a lot of money if followed and could be paying barely $3+ for the transaction a month if you study the Mempool correctly.

Many want the process to be fast. Well, Previously it was very easy and the fees were also relatively comfortable and if you felt it was expensive it was very easy to set the sat value if the fees were high. But, in recent days it can no longer be done as it has been locked. For example, if we use Trust Wallet. If you receive 2x receipts and want to disburse them, each transaction is subject to a fee, for example one transaction is set at $3.05 the amount becomes $6.10 for the transaction to be successful.

[EarnOnVictor]

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 Mempool congestion has been an issue and who knows when the fees will be beaten lower to accommodate reasonable fees. This is a discouragement truly but is not the first time that we will experience this kind of situation, which is why I know it's not going to be the last.

You and your friend have also made the right suggestions, so don't be discouraged, I also advise you to continue to DCA without minding the situation. You can use your Debit/Credit card, P2P, or Lightning network if the money is not big. But if the money is big enough, I wouldn't mind the network fee if I were you, but I will be DCAing once a month.

This would have saved you a lot of money if followed and could be paying barely $3+ for the transaction a month if you study the Mempool correctly.

If you notice we are settled in solidly around 45 sats.

So if fees are always at 45-50 sats.

People will have to adapt usage of side coins.

and LN chain .

I think 40 sats could be forced for long time periods.

Well said, and we should even be thankful now that the situation is not as bad as it was the last time a thing like this happened despite the memory usage now being stable above 1 GB. I saw it at almost 1.5 GB last week and I shouted because I've never witnessed that since I started using Mempool for my Bitcoin transactional plans. The last time such a thing happened, even at 1 GB, the fee climbed close to $20 which was almost 500 sat/vb, it could be more then but that was what I witnessed myself. It's not the situation now, the fees are still reasonable enough but might be far above the price you called over time. Fees tend to be lower and more reasonable during the weekend, but from Monday to Friday, we might see some upward trend unless the whole situation subsides.

And yes, people have started opting for the alternatives, it's normal when they will be paying multiples with Bitcoin.

[NewRanger]

But considering that $2.67 is the top priority for doing a transaction as of this moment. I'd probably DCA and have a minimum like $50 and above.

That's right, $50 is the minimum price and if you want to enter more than that figure it would be even better and if you want to do WD after you can earn money later, I don't think it's too much of a cut from your initial capital. But, if it's not necessary, just hold on and continue to make DCA purchases regularly whenever you have extra fortune.

[legendbtc]

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 really 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.

I also tried it yesterday and the results are almost the same as what you said in terms of the fee request range, and if approved then it can be executed, but it's still not bad compared to last week, almost 3x more than today. and the waiting time is up to five days before completion. Is this the case and do we seem forced to do it or is it just my opinion, regardless of network congestion when BTC is going up.

Today the transaction fee increased again by 6%, electrum issued a warning and another thing is that my transaction is still not confirmed . It is true that nothing is perfect and we need to accept, adapt and be satisfied with everything. Bitcoin fees and confirmation times may make us feel uncomfortable, but in return it gives us almost absolute safety. It is not like other blockchains that are vulnerable to attacks and hacks. Anyway the market is correcting, I hope when my transaction is confirmed bitcoin will also reach 38k$  .

[sunsilk]

But considering that $2.67 is the top priority for doing a transaction as of this moment. I'd probably DCA and have a minimum like $50 and above.

That's right, $50 is the minimum price and if you want to enter more than that figure it would be even better and if you want to do WD after you can earn money later, I don't think it's too much of a cut from your initial capital.

Yeah, as long as the fee is like that make sure that amount or any amount you think that it won't hurt the capital that you're going to send to your wallet. Because the fees are changing and still dynamic.

But, if it's not necessary, just hold on and continue to make DCA purchases regularly whenever you have extra fortune.

If you can't take the fee and you're feeling that there's such a waste. I agree that it's better to hold and wait until the fees drop a lot like reaching back to 1 sat/vB but we don't know when exactly that will come back.

[Wexnident]

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.

I'd say it depends on how much you DCA? I mean it might break the pattern but really, investing idk $40-$50 per week with $10 fees does not seem worth it since that's 1/4 of your total investment already. Maybe set a maximum in terms of fees so that you can guarantee it, and if it goes past that, just hold the money or something temporarily. If you can't hold it then actively look out for hours where the Mempool isn't as congested to get cheaper fees.

LN sounds good if you want to though. There are a lot of guides out there and there are also ones in the forum made by others as well. If you really don't want to break the pattern then I'd suggest go for that, but if you can handle breaking the pattern then it's up to your preference by then.

[KiaKia]

Sadly this is a big issue right now, those who have $10 -$20 dollars to DCA into Bitcoin every week can't do it right now, they will have to gather up the money for month before they can purchase some Bitcoin, the problem doing this is the value of Bitcoin after every month, what if it keeps going up while you waiting for every month ending?

I still advice someone to do this two days ago as this is the only way for people who have less money to DCA into Bitcoin every week, only $50 to $100 worth of Bitcoin is worth buying with $3-$4 transaction fee, or else you are going to keep wasting money on transaction fee alone, it's not encouraging for beginners at all.

Many beginners don't want to get their heads into things that seem complicated, learning about LN ( Lightening Network ) can be confusing for them, it's a matter of choice at this point but not everyone can go this path.

[Ndabagi01]

The transaction fees are currently affecting many people, but those who do DCA are the most affected. My advice is that you reduce how often you send money from the exchange to your wallet immediately after purchasing some coins. Why not leave it to accumulate for a while, say twice a week or monthly depending on how you make your purchase, so that the money spent on transaction fees is reduced? And if the transaction fees decrease at any point in time, you can immediately move them out; otherwise, you should wait to gather them before moving them out. Waiting for a lump sum is not a good idea because you will have easy access to the money and be compelled to spend it before buying bitcoin with them.

[_BlackStar]

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.

I don't know if you have found the right solution to your problem - but personally I can advise you to withdraw once a month once your bitcoin accumulate more. However there is nothing wrong with utilizing LN - it has been recommended for microtransaction involving small amounts of bitcoin. If I were you - then I would only withdraw bitcoin from the exchange every 4 or 8 DCA cycles - that would reduce the transaction fees.

On Binance - you can withdraw your bitcoins with a minimum withdrawal of 0.000005 btc using the LN network. The fee charged is 0.000001 btc - that's reasonable for you especially if buying $10 each DCA. But if you don't trust Binance or any centralized exchange to store your $80 worth of bitcoin in two months - then you should withdraw using LN every week.

[LogitechMouse]

If you are doing it on a weekly basis, do it less often like once every 2 weeks, or if possible once a month. It's also hard for me to do DCA because of these insanely high gas fees, so my solution to this is to just hold other altcoins (staking coins in particular) so that I can still gain some tokens while holding it in preparation for the bull run. It doesn't mean that I'm not holding Bitcoin though, but if the transaction fees go back to normal, I will continue to accumulate Bitcoin again. It's my strategy, and I don't recommend it especially if you only want to hold Bitcoin.

~
I feel like I may use the money kept for DCA for other expenses.

Well, as long as those "expenses" that you're saying are way more important than investing it into Bitcoin then I guess there's no problem. After all, it's your money.
Patience. One word that's very hard to apply when it comes to investing. Being patient is very hard because people nowadays don't want to wait for a long time to gain money. If you don't want to pay those high gas fees, it's wait for the fees to go back to normal, or follow what your friend said.

[Fundamentals Of]

I think there are non-custodial wallets out there that are in partnership with certain Bitcoin-selling services. When you buy, they will directly send you your Bitcoin in your wallet. You can also buy through P2P so that you can request for a lower fee if you are willing to wait.

The problem with centralized exchanges is that they are setting higher fees. These fees are not just for your withdrawal's network fees, a portion of it is for them.

You can also choose to widen your DCA's interval. If you are buying weekly, you may want to change it to monthly.

[Strongkored]

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

Storing our coins on an exchange is not the right thing but in my opinion that is if it is done for the long term, for example, more than six months or more, but if it is only 1 to 3 weeks it will not be a problem when you are using a trusted exchange and currently it seems that's the best way to avoid spending more money on transaction fees.
But I'm quite curious whether CEX is currently increasing withdrawal fees due to current network conditions. because the CEX that I use doesn't do that and before the current network the withdrawal fees on the CEX were already high so it wasn't friendly for those who did DCA and withdrew every time they finished making a purchase.

[adaseb]

Only other thing you can do really is buy WBTC and just used some L2 like Arbitrum. Fees are extremely cheap and many exchanges support WBTC.

However keep in mind WBTC is somewhat centralized because if the holder company turns out to be a fraud then you will lose your BTC. But if you do it once in a while you should be fine.

Buy WBTC weekly, withdraw and after 10 weeks send it back to exchange and convert to BTC and then withdraw that BTC to the actual bitcoin blockchain.

[Silberman]

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

Storing our coins on an exchange is not the right thing but in my opinion that is if it is done for the long term, for example, more than six months or more, but if it is only 1 to 3 weeks it will not be a problem when you are using a trusted exchange and currently it seems that's the best way to avoid spending more money on transaction fees.
But I'm quite curious whether CEX is currently increasing withdrawal fees due to current network conditions. because the CEX that I use doesn't do that and before the current network the withdrawal fees on the CEX were already high so it wasn't friendly for those who did DCA and withdrew every time they finished making a purchase.

It is true it is not the best option to leave your coins at an exchange for such a long time, but for the ones that are buying small amounts of bitcoin they may not have any other choice, as the only other option would be to buy an altcoin with a cheap transaction fee and then get the altcoin out of the exchange, and once the fees went down make a deposit, convert to bitcoin and then make a withdrawal, however with so many transactions and conversions it is not clear if any money could be saved with so many moves, plus you are exposing yourself by using an altcoin this way as it could drop in price and make you lose more money than what you could have lost in fees.

[michellee]

In fact, you can leave your coins on an exchange like Binance for a while until the transaction costs decrease. It's still safe as long as you choose a trusted exchange to store your Bitcoin there.

If you are still in doubt, you can look for an exchange in your country. If there is a problem later, you can contact them to ask for help so they can solve the problem.

Another solution is that you can temporarily save the $ 10 in your bank while waiting for everything to return to normal, as you said.

[justdimin]

I'd say it depends on how much you DCA? I mean it might break the pattern but really, investing idk $40-$50 per week with $10 fees does not seem worth it since that's 1/4 of your total investment already. Maybe set a maximum in terms of fees so that you can guarantee it, and if it goes past that, just hold the money or something temporarily. If you can't hold it then actively look out for hours where the Mempool isn't as congested to get cheaper fees.

LN sounds good if you want to though. There are a lot of guides out there and there are also ones in the forum made by others as well. If you really don't want to break the pattern then I'd suggest go for that, but if you can handle breaking the pattern then it's up to your preference by then.

I would say when we are talking about putting in fiat, that doesn't really include that much money to do. I mean from my bank to bank account of binance to put up money, that is nothing, it's free and I do not spend any money at all. That means I have money at binance for free, now that I do that, I turn that fiat into bitcoin, and that only costs the trading fee as well.

This means, I can do DCA with absolutely no fee at all, just a small trading fee, which is less than a dollar. So, I can put up 50 bucks a week and that would be fine. I would still say go for it if you want to, sure transactions cost a lot but in this situation you are not having any crypto transaction. If you do have to, then suddenly that becomes a trouble and you would be right, you shouldn't have crypto transactions at that level per week, it would hurt your finances, but if you do what I said then you do not pay anything and you can do that. I know, because I have done that for years.

[Minor Miner]

I'd say it depends on how much you DCA? I mean it might break the pattern but really, investing idk $40-$50 per week with $10 fees does not seem worth it since that's 1/4 of your total investment already. Maybe set a maximum in terms of fees so that you can guarantee it, and if it goes past that, just hold the money or something temporarily. If you can't hold it then actively look out for hours where the Mempool isn't as congested to get cheaper fees.

LN sounds good if you want to though. There are a lot of guides out there and there are also ones in the forum made by others as well. If you really don't want to break the pattern then I'd suggest go for that, but if you can handle breaking the pattern then it's up to your preference by then.

I would say when we are talking about putting in fiat, that doesn't really include that much money to do. I mean from my bank to bank account of binance to put up money, that is nothing, it's free and I do not spend any money at all. That means I have money at binance for free, now that I do that, I turn that fiat into bitcoin, and that only costs the trading fee as well.

This means, I can do DCA with absolutely no fee at all, just a small trading fee, which is less than a dollar. So, I can put up 50 bucks a week and that would be fine. I would still say go for it if you want to, sure transactions cost a lot but in this situation you are not having any crypto transaction. If you do have to, then suddenly that becomes a trouble and you would be right, you shouldn't have crypto transactions at that level per week, it would hurt your finances, but if you do what I said then you do not pay anything and you can do that. I know, because I have done that for years.

But OP and everyone don't want to leave bitcoin on centralized exchanges like Binance. They will still buy bitcoin on centralized exchanges and there won't be significant fees like you said but the issue of withdrawal fees to non-custodial wallets is a concern these days. I have to agree with the OP that bitcoin transaction fees are becoming a headache for us retail investors. I want to sell my bitcoins but the transaction fees are too high and it's causing me a lot of trouble. If I wait longer, transaction fees may decrease but at the same time, bitcoin price may also decrease.