The capacity and capability of sending cryptocurrency from one wallet to another irrespective of the anonymity attached to the process is something interesting to discuss. Today, there is already a mockery of local interbank charges in the wake of crypto sending in which crypto fees are the same across every country.
In cryptocurrency transfer, network fees are relative across every crypto transaction. Nevertheless, sending crypto is considerably cheaper than several traditional payment methods.
In this article, you will be guided with a better understanding of the blockchain fee process, putting into consideration the transaction that entails Bitcoin and Ethereum.
What Are Crypto Network Fees?
As a newbie in the cryptosphere, there might be a lingering question on what network fees are since a blockchain doesn’t have a bank. The question might even go further by who sets the crypto rates and who is making a profit?
Broadly speaking, crypto network fees are synonymous with transaction fees. They are often paid to crypto miners for transactions added to the public ledger. Considered a reward, crypto fees must be paid for every transaction to get validated. Hence it can be described as the fuel that powers the gear wheels.
With differences in transactions, financial incentives are provided for miners. However, network fees are dependent on the transaction data size, network activity, with an option of transaction speed (low, medium, or high) being made available for users. This translates to the direct proportionality that the faster the transaction speed, the higher the fee.
How To Calculate Crypto Network Fees
In the event of sending cryptocurrency like Bitcoin or Ethereum to another digital wallet, there is a need for you to get conversant with the network fee that can be incurred.
If you are using the Prestmit app, you don’t have to calculate, Prestmit does that. When funds are sent, the estimated network fee can be checked on the transaction confirmation screen before the transfer is initiated.
For Bitcoin, it has a few online available being used in that regard. For instance, privacypros.io is saddled with the provision of network fees that are associated with mining transactions within three (3) blocks (30 minutes), one (1) block (10 minutes), and six (6) blocks (1 hour). The website also provides a chart that shows the history of daily average Bitcoin transaction fees, which denomination is in satoshis per byte.
It could be recalled that the Bitcoin blockchain is designed such that each one is less or equal to 1MB.
Concerning Ethereum, its users can visit gasnow.org to get a real-time network fee indication. The website shows the gwei amount associated with slow (>10 minutes), standard (3 minutes), fast (1 minute), and rapid (15 seconds) transaction speeds.
The Best Practice To Send Bitcoin And Ethereum
Stick to off-peak periods if you want to avoid incurring high crypto network fees with fast transaction confirmation. Even at that, research infers that the Ethereum blockchain tends to be busy between the hours of 1 pm UTC and 6 pm UTC, which falls within the time zones of 8 am EST and 1 pm EST in the United States. On a general scale, the network fees are lower every Sunday.
Timing is everything when it comes to crypto network fees. Ensure you set your transaction at a right time to send Bitcoin and Ethereum at a reasonable network rate.