HOW TO SAVE ON FEES
Tips on setting optimal Bitcoin transaction fees
The topic that has been causing the most frustration nowadays is the Bitcoin transaction fees. The average fee for sending funds is $19. Developers and experienced users argue that there are ways to decrease transaction fees.
Half of all Bitcoin transactions are handled by Coinbase. The interesting thing about Coinbase is that, although they were loudly complaining about high fees during the Bitcoin block size debate, Coinbase has not yet implemented the technical changes concerning Bitcoin’s Segregated Witness (SegWit) that could significantly decrease fees. The SegWit took place nearly six months ago.
Coinbase co-founder and CEO Brian Armstrong responded on Twitter stressing that the company is working on the changes to reduce fees, adding “Thanks for bearing with us”. If you don’t want to wait any longer for Coinbase there are several ways to reduce the fees today.
One of the ways is to choose the right wallet.
SegWit transactions cost half as much as normal transactions but only 12% of Bitcoin transactions take advantage of this fee reduction solution. Not all wallets are SegWit compatible. It’s worth considering SegWit compatibility. Hardware wallets Trezor and Ledger support SegWit and mobile wallets Edge and Samourai Wallet, as well.
The other solution for fee optimization is the use of fee estimators.
Many Bitcoin wallets provide fee estimator tools. It helps users decide what fee level they should choose for their transaction. The higher the fee, the quicker the transaction will be completed. But no one wants to overpay by raising the fee too high. New estimator tools help you find the optimal fee level. We selected two easy-to-use tools:
Coinb.in’s estimator considers how much data is sent with the transaction. You can adjust the data size in two columns and you get an estimated optimal fee, based on recent transactions: https://coinb.in/#fees
Bitrefill’s Sergej Kotliar launched a tool that makes it quite simple: "Just paste a transaction ID and see if you’re overpaying for your bitcoin transactions and withdrawals," tweeted Cotliar. You can use this online tool here: https://transactionfee.info/