High transaction fees affects those who DCA

[Natalim]

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 high transaction fees certainly becomes annoying. Everyone gets affected and is really sucking into my nerves. But what else can we do than to wait for days or weeks until its back to normal. That's why instead of withdrawing or doing DCA weekly, do it monthly just to save up with the fees. For me, this could be the best option, unless if you decide to stop doing DCAing until the fees drops and return to normal.

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.

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[mv1986]

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?
 

[ajiz138]

The high transaction fees certainly becomes annoying. Everyone gets affected and is really sucking into my nerves. But what else can we do than to wait for days or weeks until its back to normal. That's why instead of withdrawing or doing DCA weekly, do it monthly just to save up with the fees. For me, this could be the best option, unless if you decide to stop doing DCAing until the fees drops and return to normal.

Patience is the key. We all know that it won't take long and the issue will be fixed again. But my advice is never resort spending to other matters using your DCA budget.

I think waiting to return to normal in transaction fees is still not certain this has been happening for months the fees are more expensive than what was thought so waiting is not a good solution it will hinder your DCA when you want to continue to accumulate it, so I think to be more efficient then do it once a month, so I think it is still very reasonable if you have to spend about $3-$5 for withdrawal fees.

I don't think the fee will be normalized in the near future while the ordinal is in high demand and maybe now more because it will enter a new hype trend then it is clear that it will be high for bitcoin network fees.

Don't stop DCA keep doing it if you can.

[lionheart78]

High-fee transactions not only affect people who are DCA-ing their way into accumulating BTC.  This also affects merchants that have Bitcoin as a mode of payment.  Anyone who uses Bitcoin as a medium of exchange is greatly affected by this surging transaction fees.

Some merchants due to these high fees even disable their BTC payment option and use other forms of cryptocurrency that have a smaller fee.  If this continues, the Bitcoin market may find itself plummeting because of pulling out of demand and funds moving elsewhere.

[Fatunad]

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 high transaction fees certainly becomes annoying. Everyone gets affected and is really sucking into my nerves. But what else can we do than to wait for days or weeks until its back to normal. That's why instead of withdrawing or doing DCA weekly, do it monthly just to save up with the fees. For me, this could be the best option, unless if you decide to stop doing DCAing until the fees drops and return to normal.

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.

It do really give out that kind of feeling on which you would really be not liking on missing out everything! On the time that the network would really be spammed out with those tons of transactions on which it would be causing up that kind of high fees then you would really be that definitely having that kind of regret on not to be able to DCA specially on the time that you are seeing some buying opportunity then you wont really be having no choice whether you would be paying up those high fees or would really be waiting for things to settle down. but if you are willing to spend $20 on maximum fees just for you to DCA then it wont really be that an issue specially  to those who are in for long term but for those who do make out some scalping or day trades then with the current high fees then it would really be that a pain in the ass on making transactions.

Just like been said that not everytime we do have this high fee kind of condition on which there are really times or moments that the network condition is congested and it doesnt really
take long.So for those who do really have only sufficient money for them to invest then they would really be just simply waiting up for the network condition to subside before
taking any actions.

[bhadz]

High-fee transactions not only affect people who are DCA-ing their way into accumulating BTC.  This also affects merchants that have Bitcoin as a mode of payment.  Anyone who uses Bitcoin as a medium of exchange is greatly affected by this surging transaction fees.

Some merchants due to these high fees even disable their BTC payment option and use other forms of cryptocurrency that have a smaller fee.  If this continues, the Bitcoin market may find itself plummeting because of pulling out of demand and funds moving elsewhere.

There are some possible solutions that they can make so that they can keep on receiving BTC payments. There will be some exchange that they prefer to have for off chain transactions to happen and that's an instant and fee less method but not all customers have these funds on their exchanges but in fairness to these merchants, if they have these options they are still continuing to accept this payment option and won't disable it due to the fees. We're all just trying to survive and with any situation in the market even if the fees are that much, we're looking for the best options to make.

[carlfebz2]

Now, here we go again with this kind of situation which we do have that clogged up network
which do really sucks.

No Priority
32 sat/vB
$1.88

Low Priority
202 sat/vB
$11.89

Medium Priority
222 sat/vB
$13.06

High Priority
232 sat/vB
$13.65

https://mempool.space

You would really be definitely be hesitating on making up some active transactions from transferring coins from your wallet into exchange platforms
unless if you do have some funds into your exchange then it wont really be that an issue or problem but if there's none then you would really
be needing to deal up with the fees. I was actually waiting for it to be going down in <20sats/byte considering that it did really
go below <40sats/byte but here we come again into this situation which it do really sucks big time.

[salad daging]

You would really be definitely be hesitating on making up some active transactions from transferring coins from your wallet into exchange platforms
unless if you do have some funds into your exchange then it wont really be that an issue or problem but if there's none then you would really
be needing to deal up with the fees. I was actually waiting for it to be going down in <20sats/byte considering that it did really
go below <40sats/byte but here we come again into this situation which it do really sucks big time.

OP is not sending coins from wallet to platform but rather from exchange to non-custodial wallet.

I just checked the BTC withdrawal fee from Binance exchange because this is a widely used exchange that charges a high withdrawal fee of 0.0004 or the equivalent of $16 that is really heavy for those who do small DCA then it will be very unfortunate with that large fee.

It is very difficult to see 20sats/byte of course this sucks but the fee in the mempool continues to be high never dropping to low.

[stompix]

There are some possible solutions that they can make so that they can keep on receiving BTC payments. There will be some exchange that they prefer to have for off chain transactions to happen and that's an instant and fee less method but not all customers have these funds on their exchanges but in fairness to these merchants, if they have these options they are still continuing to accept this payment option and won't disable it due to the fees.

Merchants still need to use those coins, so imagine you sold 100 memberships of 10$ and now you have to use those $1000 to pay you bills and you have a 100 inputs tx that is going to cost you $600 at the next current block fees!
So from the start you've earned $$ instead of $10 for each of those 100 sold memberships!
Would you still do it?

[jeraldskie11]

There are some possible solutions that they can make so that they can keep on receiving BTC payments. There will be some exchange that they prefer to have for off chain transactions to happen and that's an instant and fee less method but not all customers have these funds on their exchanges but in fairness to these merchants, if they have these options they are still continuing to accept this payment option and won't disable it due to the fees.

Merchants still need to use those coins, so imagine you sold 100 memberships of 10$ and now you have to use those $1000 to pay you bills and you have a 100 inputs tx that is going to cost you $600 at the next current block fees!
So from the start you've earned $$ instead of $10 for each of those 100 sold memberships!
Would you still do it?

I think he refer to the P2P in the exchange where you can sold your Bitcoin or USDT for a fiat. Example Binance, if you want an instant withdrawal without paying for a fee then use the P2P feature in Binance. The merchant is the one who posted an ads to sell/buy their crypto for a specific price, if you can afford the price just follow the simple instructions provided by them. This way we can't be affected by the high fees that cause by network congestions.

[goaldigger]

I don't mean to offend but if you use btc, transaction fees of 10$ and below should not be a problem for you, if you have above 0.5 btc I think paying 5-10$ of 19k$ is not too excessive. but if you still want to use it, you have to pay attention to safety.
I wonder why people make a big deal out of small things when you are on to big things.

When you have big money, I’m sure you’ll not talk about the fees anymore but of course we are talking here in general and we cannot blame them to rant because of the fees because its true after all. A higher fees affects the small time DCA investors and that includes me. My strategy is that, i save money first then if its already within my minimum target deposit then that is the time I will buy, though I do DCA with stablecoins during that time and will just trade if its the right time already.

[Hamza2424]

I'm not sure commented on this topic before or not because the topic is quite old, I've scanned it and haven't found any of my comments but it is worth discussing, maybe it can impact the newbies and users can prevent it, as mostly we buy through the centralized exchanges and if the buyer is newbie investor with small portfolio he should prefer holding the funds on the centralized exchanges till the significant amount and then moving all those funds together to the hardware or any self-custodial wallet.

The network never always remains congested and high cost, it varies from time to time, currently, the network cost jumps are due to the BRC-20 ordinals, and I've encountered many people strongly opposing their existence on the network may be shortly a BIP will fix this network over-loading shit.

[Hamphser]

I don't mean to offend but if you use btc, transaction fees of 10$ and below should not be a problem for you, if you have above 0.5 btc I think paying 5-10$ of 19k$ is not too excessive. but if you still want to use it, you have to pay attention to safety.
I wonder why people make a big deal out of small things when you are on to big things.

When you have big money, I’m sure you’ll not talk about the fees anymore but of course we are talking here in general and we cannot blame them to rant because of the fees because its true after all. A higher fees affects the small time DCA investors and that includes me. My strategy is that, i save money first then if its already within my minimum target deposit then that is the time I will buy, though I do DCA with stablecoins during that time and will just trade if its the right time already.

Not all would really be having that deep purse on which it would really be just that normal that they would really be making out those kind of reactions basing up on the current fee that we do have now on Bitcoin.
As of this writing it is almost reaching $40 on which this is the highest fee that i have seen on Bitcoin network on which it is almost that getting in line with ETH transactions fees on which it is really that absurd on making transactions as of this moment as fees would really hurt you so much.

The network never always remains congested and high cost, it varies from time to time, currently, the network cost jumps are due to the BRC-20 ordinals, and I've encountered many people strongly opposing their existence on the network may be shortly a BIP will fix this network over-loading shit.

Yes, ive been able to hear out this shit on which that shitty brc20 do really make out this spam in the network specially on bitcoin on which it do really sucks that it is really that
becoming too often on having this kind of spam.For those who are just having that small amounts then it would really be that a pain on making transactions.

[DYING_S0UL]

Low Priority
202 sat/vB
$11.89

I was actually waiting for it to be going down in <20sats/byte considering that it did really
go below <40sats/byte but here we come again into this situation which it do really sucks big time.

To be honest, I would not pay $12 for just a transaction. It's just too much for me. I would rather let my funds sit on my wallet and let it be until this shit ends.  It's just not worth it. If I could save even $2 per transaction, I would happily save it. Imagine how much would it sum up in a year.

[OgNasty]

Low Priority
202 sat/vB
$11.89

I was actually waiting for it to be going down in <20sats/byte considering that it did really
go below <40sats/byte but here we come again into this situation which it do really sucks big time.

To be honest, I would not pay $12 for just a transaction. It's just too much for me. I would rather let my funds sit on my wallet and let it be until this shit ends.  It's just not worth it. If I could save even $2 per transaction, I would happily save it. Imagine how much would it sum up in a year.

That is completely understandable. I’ve had a lot of people lately tell me that they don’t want to spend Bitcoin to buy my goods because of high fees. I’ve started accepting pretty much any major altcoin as a result, which has left me with an interesting mix of coins, but it shows that high fees are most definitely punishing Bitcoin vendors and customers alike.

[Rabata]

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.

Fees are definitely an important factor for those doing DCA, especially who doing small amounts every month of week. Over the past few days, the abnormal increase in the value of some BRC20 tokens has caused network congestion and continues to do so. While this situation is not a problem for large investors or holders, it is a big problem for those who are small investors or holders especially those who collect bitcoins weekly or monthly. Here I think if the holders temporarily hold the bitcoins in the exchanges and when the effect of ordinal decreases then the transaction fee will be normal again. At that time they can collect bitcoins. Or you can keep your money for a few months to collect bitcoins again when the fees decrease.

[KingsDen]

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.

Fees are definitely an important factor for those doing DCA, especially who doing small amounts every month of week. Over the past few days, the abnormal increase in the value of some BRC20 tokens has caused network congestion and continues to do so. While this situation is not a problem for large investors or holders, it is a big problem for those who are small investors or holders especially those who collect bitcoins weekly or monthly. Here I think if the holders temporarily hold the bitcoins in the exchanges and when the effect of ordinal decreases then the transaction fee will be normal again. At that time they can collect bitcoins. Or you can keep your money for a few months to collect bitcoins again when the fees decrease.

Yea, if is true... Someone making transaction $2000 will not mind paying a transaction fee of upto $10. But someone who is on a weekly DCA of $20 will not be comfortable paying a transaction fee that is up $5.  I support your idea of temporarily holding the coins in an exchange and allow it accumulate before sending to the private wallet.

No matter how risky exchanges are, we need them at this time and it is good that before anyone uses an exchange, they should ensure that it is somewhat a reputable exchange. There are some exchanges we are sure that they are not winding up tomorrow. So, it is fine we use such exchanges at this time of mempool congestion.

[erep]

No matter how risky exchanges are, we need them at this time and it is good that before anyone uses an exchange, they should ensure that it is somewhat a reputable exchange. There are some exchanges we are sure that they are not winding up tomorrow. So, it is fine we use such exchanges at this time of mempool congestion.

We have no other choice but to hold assets on exchanges due to unfavorable transaction cost conditions, but most traders store assets on trusted and reputable exchanges because in many cases they lose assets on exchanges unexpectedly and they have experience holding assets temporarily on exchanges. , when transaction fees are normal, immediately transfer bitcoins to a personal wallet or hardware wallet for asset security.

The impact of market correction is also beneficial for those who will increase bitcoin assets using the DCA method, they can collect more money while waiting for normal transaction costs, they will buy more bitcoin at the dip price, bitcoin may be corrected below the price of $40k if we see support a price of $40k that can't seem to survive the impact of a market correction.

[bitgolden]

No matter how risky exchanges are, we need them at this time and it is good that before anyone uses an exchange, they should ensure that it is somewhat a reputable exchange. There are some exchanges we are sure that they are not winding up tomorrow. So, it is fine we use such exchanges at this time of mempool congestion.

We have no other choice but to hold assets on exchanges due to unfavorable transaction cost conditions, but most traders store assets on trusted and reputable exchanges because in many cases they lose assets on exchanges unexpectedly and they have experience holding assets temporarily on exchanges. , when transaction fees are normal, immediately transfer bitcoins to a personal wallet or hardware wallet for asset security.

The impact of market correction is also beneficial for those who will increase bitcoin assets using the DCA method, they can collect more money while waiting for normal transaction costs, they will buy more bitcoin at the dip price, bitcoin may be corrected below the price of $40k if we see support a price of $40k that can't seem to survive the impact of a market correction.

I do agree that it is not going to be easy but I also believe that we need to start trusting the exchanges again. I get that some people may use some terrible exchanges, I have seen one exchange where the whole volume of the exchange was 780 thousand dollars, I am sorry but if an exchange has less than a million dollars in profit, then it doesn't really look like it is that much of a big deal, I think it is really not that much of a profit. I get that it may not be all that crazy, so we need to end up with something that is better, we need to accept that it is going to be a bit different situation.

I agree that it is not that common but I agree that it is going to be a tough deal on the long run, it has to be a bigger exchange, but not trusting Binance type of places will not work neither.

[inthelongrun]

It is really hard, especially for those that are in a weekly DCA. What I plan right now is to just standby my funds in an exchange since I have plans to trade actively starting next year anyway.

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.