Topic: Bitcoin transaction pending for quite long (Read 346 times)

I thought they're only greedy, but apparently they also being lazy for not using optimized fees when sending deposited bitcoin to their address.
If only Binance realize they could save more money if they use lower transaction fee

My guess would be convenience... aka "laziness"... most people can't be bothered with the hassle of vetting potential trade partners, or are simply too scared of getting scammed. So they end up paying for that convenience by paying "outrageous" fees at "Big Name" Exchanges.

I'd go p2p myself, but the local traders here have such ridiculous spreads/margins, that I may as well just pay the stupid fees on the local exchanges as it ends up being roughly the same and then I don't have to worry about getting scammed

So they are massively overpaying the fee needed for both withdrawal and consolidation transactions, paying 100+ sats/vbyte when 1-2 sats/vbyte was enough to get confirmed in the next block. Even then, given that as I explained above the combined size of one input to a consolidation transaction and one output from a batch withdrawal comes to less than 200 bytes, that means 50% of the fee you pay is pure profit, meaning Binance pocket $2 every time someone withdraws from their platform.

Why aren't people who use centralized exchanges up in arms about this? This is utterly ridiculous. You are paying $4 for something which should cost 2 cents, half of it being wasted in a completely unnecessary fee and the other half going straight in to CZ's pocket. Just another reason I am glad I only trade peer-to-peer.

Yes, Binance spend only about 10% of the fee they get from their users.
Below are latest payments made by Binance.

Transaction 1 (Number of outputs: 90, Transaction fee: 0.00400246 BTC)
Transaction 2 (Number of outputs: 99, Transaction fee: 0.00565415 BTC)
Transaction 3 (Number of outputs: 101, Transaction fee: 0.00459935  BTC)

Binance charged 0.116 BTC for 290 withdrawals and paid only 0.01425596 BTC to miners. (The current withdrawal fee is 40,000 satoshi.)


They are not doing this.
Below are last two transactions sent to their address.  

Transaction 1
Transaction 2

They have paid 106 satoshi per vbyte. It's ridiculous.

It is absolutely overblown, especially for big exchanges like Binance. Binance have enough bitcoin in their hot wallets that they don't need to urgently consolidate every deposit in order to fund withdrawals. They could probably leave every deposit alone for several weeks and still not have any issues with funding customer withdrawals. They could quite easily wait until the mempool was empty to broadcast their consolidation transactions at 1 sat/vbyte.

Further, paying 100 sats/vbyte or whatever for withdrawal transactions is complete overkill 99% of the time. Not giving users an option to even select "high" or "low" priority withdrawals, let alone an actual fee, is ridiculous.

If I make a deposit, it counts for 1 input in a consolidation transaction - about 150 bytes. If I make a withdrawal, it counts for 1 output in a pay to many transaction - about 30 bytes. Therefore, exchanges should theoretically be able to offer withdrawal fees down to as low as 200 sats. Certainly in the 500-1,000 sats range. 50,000 sats is overblown.

I still think that it is overblown... surely an exchange doesn't need to make a consolidation and top up transaction for every user withdrawal... and even if they did, they generally don't need 50,000 sats worth of fees to do them... it's just profiteering...

I'd be more inclined to believe that the min fee is designed to stop people trading in dust... no sense trying to withdraw $10 (0.001 BTC) if you are going to pay $5 (0.0005 BTC) in withdrawal fees

The reason for that is, that the withdrawal fee does not only cover a single (withdraw) transaction, but also the consolidating transactions and the top up transactions (hot wallet <-> cold wallet).
While the fees often sound pretty high, it isn't that overblown since they have to cover multiple transactions. And obviously they also want to earn money with that.

The transaction was confirmed last night (Central European Time), and as far as I can see it is included in the block that was found by ViaBTC. I personally added the transaction to the accelerator two days ago, whether it helped or it was just a coincidence it doesn’t matter so much, it’s important that the OP got its coins.

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This is how crypto exchanges and everyone else who sends transactions en masse make money - they put a fixed amount of fee for all, and only a small amount goes to the actual network fee - while the rest is a service fee. I recently withdraw some BTC from an unpopular crypto exchange (earnings from referrals), and they still have a fee of 120k satoshi - of which 50k went to the network fee, the rest is their profit.

This is the price people pay to have "instant" withdrawal services from exchanges and gambling sites etc... They want to see the transaction appear "instantly", so these services don't batch transactions... and in times of heavy network activity (generally during large price movements), users end up stuck in the middle/end of these large chains of unconfirmed transactions as the sites start pumping out transactions spending unconfirmed change...

It doesn't help that some of them are even more shitty and then "cheap-out" on fees despite charging the user ~0.00050000 BTC for a "withdrawal fee"... only to use a fraction of that to pay for network fees

Then that must be one hell of a lousy exchange. Do you mind telling me what exchange that is? (Just curious  )
...and It could be sad that they could have charged you 0.0005 BTC + as withdrawal fee but still made you go through the pain of waiting 

The fee you pay to an exchange differs from the fee paid to miners. When you withdraw from your personal wallet, you have full control over your coins and can select the fee. In this case, you pay fee only to miners. But When you withdraw the fund from an exchange, they send the fund from their own wallet. That's why you cannot select the fee when sending from an exchange.

The number of unconfirmed transactions usually drops on weekends. So this gives transactions with low fees such as 1 sat/byte a chance to get confirmed. I believe by the end of Sunday, all the parent transactions and your transaction will have been confirmed. Just be a little patient and also use this as a lesson
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I am receiving the money. Mistake of sender actually. My exchange automatically suggests me fees.

Given what nc50lc has uncovered. It's best to wait. CPFP isn't worth it as you might have to pay a lot in bitcoin fees due to the size of the unconfirmed parent transactions.

I am confident the transaction will get confirmed


The number of unconfirmed transactions usually drops on weekends. So this gives transactions with low fees such as 1 sat/byte a chance to get confirmed. I believe by the end of Sunday, all the parent transactions and your transaction will have been confirmed. Just be a little patient and also use this as a lesson

It's more than just low transaction fee.

The parents that have much lower transaction fees are all unconfirmed and formed a long series of unconfirmed transactions.
You transaction can't be confirmed unless its parents get confirmed.

Here's the list of the first 7 including yours:

• 1. 8609f53cea4b37a77162281c0b57a80c3402bde602c0e53978c0ad41a865a81e - the TX in the OP, paying 24sat/vB
• 2. 204bbd04bff224833633f425def6b1ca116bb2d4b55765a84bde6667cbcd1345 - its parent transaction, paying 11sat/vB
• 3. 39e40a36f59d2e6384ddf62c89f2b0ce6ae7d5eb59a1f3fd2c6ee2d12acecdd4 - parent of the above tx, paying 9sat/vB
• 4. e5ead85d4bb866e423f351cb4b66d750427fe2e5a01728abc117ffec0278f42b - parent of the above tx, paying 7sat/vB
• 5. ddfbcac97f04672eae163837f304daa1036235c64bcbda8e99978715d90fd748 - parent of the above tx, paying 7sat/vB
• 6. 9ed4a9c934d6f3a6da78d59d8749d0ac90fc3663a30ca0641f38483090456749 - parent of the above tx, paying 6sat/vB
• 7. 2635c25cbafaf1cf2b7bbfafe4dc8c8498f9c56dd7760f9c9217d33dc118d1cc - parent of the above tx, paying 6sat/vB

And 1 more unconfirmed parent that has 4sat/vByte fee rate.

Try to compute the necessary TX fee using the post above but take the unconfirmed parent's vsize and fee in consideration.
I bet it'll take a huge fee for CPFP to work in your case, so [TL;DR] I'd suggest to just wait it out.

Given the input is a P2PKH address, and there are two outputs - a P2SH and a P2PKH address - I'm going to assume that the P2PKH output address (1KVexQHLPDWPPFsHNoQHzqKnzdnbQfEBHk) is the change address and you own it. You can therefore speed this up using CPFP.

Your initial transaction is 223 vbytes with a fee of 5,352 sats.
A one-input-one-output P2PKH transaction will be in the region of 190 vbytes, and currently for a rapid confirmation you are looking at a fee of around 120 sats/vbyte.
These two transactions combined will have a size of 413 vbytes, and need to pay a fee of 120 sats/vbyte, which is 49,560 sats.
Since you have already paid 5,352 sats, this leaves 44,208 sats outstanding.

Therefore, if you send all the coins from the address 1KVexQHLPDWPPFsHNoQHzqKnzdnbQfEBHk to another address in your wallet which you control, and pay around 45,000 sats in fee (which will work out at around 237 sats/vbyte for this second transaction), then your first transaction should confirm in the next block.

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Edit: nc50lc is right - I didn't notice this is built on a chain of unconfirmed transactions. The total of the 8 unconfirmed transactions has a size of 1,798 vbytes, with a total fee of 16,578 sats. To do a CPFP as above, your new transaction will need to pay a whopping 222k sats, or 1168 sats/vbyte.

Better to just wait.

Such long confirmation times are usually caused by fees set up far too low, some wallets automatically set up low fees so you have to manually rise the miner's fee if you need the transaction to be confirmed in acceptable time. And always remember to check the fee before sending the transaction, especially if the receiver of the payment expects quick confirmation.

The transaction will drop from mempool only if it isn't confirmed in 14 days. But that won't happen. As already stated by OmegaStarScream, your transaction will be likely confirmed in the net 24 hours. The network becomes less congested in weekends.

 
Since your transaction has not been marked as RBF (replaceable by fee), you cannot increase the fee. One way is to use the method suggested by OmegaStarScream and the other way is to use CPFP (Child Pay For Parent) method.

You can use CPFP method, only if you have control over one of outputs of the unconfirmed transaction.
In this method, you need to spend one of outputs using a high fee, so miners include both transaction in a single block.

Note that, CPFP method is a bit expensive and you should use it only if you are in hurry. If you are not in hurry, the only thing you need to do is wait.

According to BlockCypher

https://live.blockcypher.com/btc/tx/8609f53cea4b37a77162281c0b57a80c3402bde602c0e53978c0ad41a865a81e/

Miner's preference is quite low because the fees are low. I hope you could accelerate it with the suggestion of OmegaStarScream.

It should go through within the next 24 hours. You can either try to accelerate it using ViaBTC[1] (it can be difficult since there is an hourly limit) or post the TXID here[2]. I've never tried the latter, so I can't tell you how efficient it is.

[1] https://www.viabtc.com/tools/txaccelerator
[2] https://bitcointalk.org/index.php?topic=5034315.1520

https://www.blockchain.com/btc/tx/8609f53cea4b37a77162281c0b57a80c3402bde602c0e53978c0ad41a865a81e

Transaction pending for more than 24 hours. Will it go through or get cancelled? How much time it will take? Can I speed it up now?