Video: What Are Bitcoin Transaction Fees? Can I Change Them?
Lately, you may have noticed that sending BTC isn’t as cheap as it used to be. As Bitcoin’s price rises, people want to get more of it. This makes the Bitcoin network congested, and the price of transaction fees rise. Watch this video to see how to modify the transaction fee in your wallet — and the effect of setting low fees.
Also watch: The Crypto Bar: What Is Bitcoin Cash?
Why Do I Have to Pay Fees to Send Bitcoin?
Bitcoin relies on miners to process the transactions that happen on the Bitcoin network. They do this by resolving complex math operations called hashing functions. Because these miners require electricity to solve these operations, they expect to be compensated.
If you send a high transaction fee (sometimes also known as a miner fee), then you incentivize the miner to process your transaction before the other transactions.
Can I Choose How Much of a Fee to Pay?
Absolutely! On most Bitcoin wallets, you get to chose how much of a fee you want to pay — if any! The blockchain.info wallet app has 2 predetermined fee levels: Normal and Priority. You can also choose a custom fee. You could choose to send a transaction with a very low fee, but it may be stuck unconfirmed for hours or even days!
For our purposes we used the Blockchain.com mobile app. It’s free, pretty simple to use, and lets you control your own keys. However there are several other wallet apps for newcomers and experienced users — see the Bitsonline wallet guide for more.
Bitsonline’s Bitcoin School for Beginners
This video is part of an instructional series for crypto beginners by Daniel Rojas. Daniel started the Bitcoin Meetup in Costa Rica, which now has over 300 members and a WhatsApp chat (IM app) of 175+ members (as of Oct 2017). He gives regular Bitcoin talks to the community to encourage people to learn and use this technology.
Daniel holds an Electronic Engineering degree and lives in Costa Rica. The first he learned about Bitcoin in April 2016, when it was $450 USD. He manages a Bitcoin Community in Costa Rica where he gives talks about Bitcoin and Blockchain technology to encourage people to boost cryptocurrency adoption.
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Images via Bitsonline