Please forward this error screen to 163. If you’re new to bitcoin, transaction fees can be fiendishly tricky to get your head around. Use an online fee estimator to pay transaction fee bitcoin the math. 85586 single-format-standard how-to-calculate-bitcoin-transaction-fees-when-youre-in-a-hurry global-block-template-1 td-magazine single_template_2 wpb-js-composer js-comp-ver-5.

Calculating transaction fees is like riding a bike or rolling a cigarette: simple when you know how, but frustratingly complex otherwise. UX improvements over the last few years have made bitcoin easier than ever to send and receive, but fee calculation is still something of a dark art. The following resources make fee calculation a doddle. In this life, nothing comes for free. You wanna send bitcoin, you’ve got to pay the piper, namely the miners whose machines secure the network and confirm the hundreds of thousands of transactions that pass through it every day. Satoshi Dice were able to flourish, permitting idle bitcoiners to send scores of micro-transactions over the blockchain with scant regard for fees. Fee calculation isn’t as easy as the experts would have you think.

Where Do Transaction Fees Go? The less blockchain congestion there is, the faster your transaction will be confirmed. In addition to earning a reward for solving the next block, miners receive the fees attached to any transactions on that block. The current reward per block is 12.

5 BTC, but the miner may receive a figure closer to 13 BTC by the time fees have been added on. Although there is technically no obligation to attach fees to a transaction, there is also no obligation for the miner to include any transaction in the block they’re confirming. Thus it makes sense to include a fee to incentivize the miner to add the transaction to the block. Miners prioritize transactions with the highest fee per byte, which is why senders who are in a hurry will pay a surcharge to push their transaction to the front of the queue. Pay the highest possible fee and your transaction should be confirmed within the next block, which will take an average of between 5 and 15 minutes. Pay lower fees and your transaction should be confirmed within the next three blocks, which will generally take between 10 and 30 minutes.

Who’s gonna pay for their skinny turmeric latte with bitcoin if the fee costs more than the coffee? Perhaps not ideal if you’re still chasing that coffee, but for medium to large transactions, still doable. Online explanations, while accurate, aren’t much use to the average layman. Turn to some of bitcoin’s more experienced heads for fee advice, and you may emerge with more questions than answers. What do you mean you don’t know how to calculate transaction fees?

Thankfully there’s an easier way. Many hardware and web-based bitcoin wallets already come with built-in fee calculators which do a pretty good job. But not all wallets are similarly equipped, and the majority of sites, from cryptocurrency exchanges to deep web stores, still leave it to the customer to calculate fees. USD with no muss and no fuss.

USD converter will come in handy. Mempool size over the last 30 days. It may seem frustrating that there isn’t a simpler way of determining fees, but due to the way bitcoin works, the price you pay depends on a number of factors including the size in kilobytes i. That’s why segwit sends are generally cheaper: because you’re transmitting less data over the network. The blockchain is a bit like a highway in that it can get congested at peak times.

If you’re new to bitcoin, fees can be fiendishly tricky to get your head around. Use an online fee estimator to do the math and leave the minutiae of satoshi per byte calculations to the experts or to your wallet’s built-in estimator. What’s your go-to tool for calculating transaction fees? Let us know in the comments section below.

Images courtesy of Shutterstock, and Satoshi Dice. Do you like to research and read about Bitcoin technology? Bitcoin’s innovative technology and interesting history. He’s previously written white papers for blockchain startups and is especially interested in P2P exchanges and DNMs. Sign up for the Bitcoin . Bitcoin News delivered to you!