Topic: High transaction fees affects those who DCA - page 2. (Read 1827 times)

I don't believe that is a good idea to leave funds in a centralized exchange for quite some time. The transaction fee issues have started again and I think the best thing now for investors who are dcaing is to keep their funds i fiats for an extra week so that they can combine this week and next week fitat that is supposed to be used for DCA to invest during the month end or next weekend. By this way the percentage remains the same only just the time period would vary to bi weekly or monthly depending if the high transaction fees persist.

This is why it would really be that important that you should be having some reserved USDT on your exchange wallet even though its not recommended to store tons but this is the only method
that i do make use through years when it comes on talks about DCA'ing on which im trying out to avoid those network fees but actually it isnt really that much on which based up on my awareness i have seen about
when your funds is really that inside on exchangers on which you could really just that simply make out some purchase whenever the market would really be having its correction and you do
see the opportunity for you to buy cheap.

It is really that giving out that huge hindrance whenever you do see those network fees to be that high when making up some transaction specially if you are a type of
investor which does have only that sufficient amount of money for you to buy up with. If you are some sort of whale then these fee things or concern wont
really be that much of an issue for you.

You can always do DCA through a crypto exchange that accepts deposits from the Lightning Network. Bitstamp is one of them. Fees on the LN are neglible, making it extremely-convenient for day-trading and micropayments. The only downside is that you'd need to pay a high on-chain fee once. It's the common rule of L2 networks.

Hopefully, BTC fees will decline as developers introduce a series of network upgrades to "tackle" the problem. Just keep buying, "hodling", and forget about the rest.

DCA is a good strategy. But in the case of Bitcoin, it does require a lot of fees in terms of fees. But everyone knows the solution to this issue; it all depends on how you prioritize. The options are as follows: 1. Increase the timeframe. Instead of weekly purchases, make monthly or quarterly or even semi-annual purchases. There won't be a big commission here. 2. Use Bitcoin equivalents rather than real Bitcoin. For example, lining-bitcoin or sovrin-bitcoin. Or wrapped Bitcoin on EVM networks such as Polygon or Arbitrum. Or BNB. This will really allow you to save on fees. But you have to pay for everything. The second option is bad for those who prefer to deal with real (native) bitcoins.

That is probably the best way to deal with high transaction fees if there is network congestion but people still need to keep buying Bitcoin. They should use a trusted centralized exchange, keep buying and storing in their account, keep it secure with 2FA and every possible security option they are given by the platform, and withdraw to their non-custodial wallets only when the fees are back to normal which happens after some time as we have seen.
Someone will surely have to pay a lot of money in fees if they keep doing DCA and withdrawing every time from the exchange platform to their wallet if the fees are high, so one needs to do what's better in that situation and the solution is to buy and wait.

Mempool shows a reduction in BTC network fees over the past month. I guess the Ordinals hype has come down to a halt. At least, temporarily. Now with the persistent FOMO because of ETFs accumulating large amounts of BTC, we should expect fees to increase all over again. As soon as you see the opportunity, open a LN channel with a low BTC fee, and stay there until the "dust settles". You will be enjoying cheap fees and blazing-fast speeds on the LN even if on-chain activity skyrockets.

And if you want to profit from the hype without needing to pay high fees, then leaving your coins in an exchange for trading (temporarily, of course) would be the way to go. Just spend your money wisely, and there should be nothing to worry about.

You can send and confirm in ~10 minutes with a fee around ~13 to ~20 sats/vb based on the last six blocks. That can be considered cheap nowadays. The problem with the OP is he's withdrawing from centralized exchanges and you know that they usually charge higher than that. Their lowest transaction fee could be set at 40sats/vb so you still end up paying more than the high priority on mempool.

Buy sats.

Did you send bitcoin recently because I didn't look at mempool for latest fees stats. They can't be high like before but if fees are high ppl have to wait until it's cheaper to send. Isn't it a good idea for ppl to apply same saving to buy process on crypto which isn't expensive because bitcoin's getting hard to buy for ppl who've got limited budgets.

Exactly. Making a batch transaction or sending BTC occassionally would be the best way to save money on fees. If you want regular payments, you'd need to either use the LN or wait until fees go down. Fingers crossed developers will come up with on-chain solutions to prevent a disaster in the long run. At least, you can trade BTC on CEXs without paying high fees (until you make a withdrawal).

Bitcoin's current situation will force many to trust a custodian (third-party) with their money. Could this be a tactic from mainstream governments to prevent self-custody of BTC? Only time will tell. As long as decentralization wins, there should be nothing to worry about.

I was going to comment also you could consolidate a larger amount within an exchange.  Not everyone is comfortable holding on an exchange but the point would be to move off the amounts of a regular basis just not everyday but weekly or monthly should be enough.   Thats a common enough thing to do to get around the fees dilemma.

Its worth still buying over time as some of Bitcoin direction cannot be known for sure, now is a good example.  From experience I would call this a bullish accumulation and probably price action does attempt to break upwards from this temporary hold below the ATH.

The majority of volume is below the ATH not right at the peak, its mostly a psychological barrier or ceiling we face.   For that reason I dont think it will hold but also this premise must be proven, the only certain way is to test and find this level of 68k or nearby as a support level.   That could take months I'm not sure, hence DCA could be the best thing with such uncertainties.

For now true but who knows what may happen in the nearest future in bitcoin technology and how advanced it would be, if bitcoin would ever achieve what satoshi envisioned it to which a electronic p2p means of exchange without trusted parties or middle men, bitcoin right now is more like an investment asset and serves better for such purpose, many would not even like to store value in it cause its still quite volatile, I don't ever think in the perspective of bitcoin replacing fait but in the future we might have many means of exchange and bitcoin could be one of them even if not with the lowest gas fees but maybe more affordable, like bringing it to a lowest minimum of 1 dollar or maybe cents.

Scalability would not always be a problem for bitcoin, much can happen in years to come, no one really knows what to expect.


Your quite right, just keep your bitcoin or holdings on reputable exchanges like binance untill you have accumulated quite enough for up to 3 months then move to your hard wallet or any self custodian means you chose.

I myself I normally don't do a lot of transactions with crypto except my weekly DCA which could max up to 100$ at times and 20$ at times, so I just keep my holdings on the exchange untill it's up to 500$, then I move it to my ledger hard wallet, safe and easy.

But remember not to store or hold on exchanges, not advisable, potential hack may occur and you have just lost your holdings.

This is the obvious answer.

People should not leave their bitcoin on an exchange to sit for a long time because there is always the possibility of the exchange getting hacked at some point. And in general you should be in control of your bitcoin since Bitcoin allows you this ability. But leaving coins on an exchange for a matter of weeks or a few months is extremely low risk if you are using a reputable exchange. If the ratio of your fee-to-DCA is high enough that you are complaining about it you should just move your coins off the exchange less often. Problem solved. Also that way you use a bit less block space and make the blockchain ever so slightly cheaper for everyone else.

There really is no reason to move off-exchange every single time if you are DCA'ing. Assuming you're not using some shady exchange, which would be a much more serious problem, just do it once a month or once every couple months instead of every week.

Always use common sense. Don't just blindly follow rules people say. Yes you should control your bitcoin yourself, but that doesn't mean you can never make use of an exchange's custody services. If you're literally hurting your finances just to follow a rule of thumb then you are doing things wrong.

Just like you're not going to buy a $5 coffee using an on-chain transaction paying a $3 fee, you're gonna use the LN and pay a <1 cent fee, you shouldn't be making an on-chain tx for every single DCA if you're only DCA'ing like $50 or something at a time.

I don't think fees will go down to a point where you can use BTC for micropayments. It will only be feasible through "The Lightning Network". For large transfers, using the main BTC blockchain would be the way to go. Thank goodness we have a variety of altcoins to choose from, or we would've been stuck waiting for fees to go down. Would you imagine Bitcoin being the only Blockchain network in the world? It wouldn't be able to meet the demands of everyday people.

Hopefully, developers continue working on scaling BTC to make it a "force to reckon with". As long as Bitcoin stays decentralized, there should be nothing to worry about.

4 hours ago when i did make out some transactions on which i was indeed happy that the fee is already sitting around 10sats/byte but now when i wake up then boom another 100sats/byte
transactions again. Well, this isnt always talking about those ordinals thing but rather this is something that could also happen whenever there's some spike that do happen in the market.
Tons of trades or transactions been done specially into those who are really that trying out to move their bitcoins into specially now that it did able to hit up 50k on which
this isnt really that bad on making some decisions on selling out your coins i should say. When speaking about DCA then it wont really be a problem if your funds is on exchangers on which
you would really be able to save up yourself on such transactions but we know on how risky on leaving your funds on an centralized exchange and this is why i do understand
on why people would be actively be sending out their coins into their own wallets.

I think the high fee is natural, it comes from taproot and ordinal's boom, it means bitcoin has more utility to use, for bitcoin this cannot be changed, I think it is characteristic of bitcoin - POW. it is also the reason that many bitcoin l2 projects are building to compensate and increase the opportunity to use bitcoin with lower transaction fees. it will be like ETH with polygon or Arb

We'll see fees move high & low but they'll have to go down or else it's going to be expensive sending micro payments. There's cheaper options to save fees but you'll want to hold your bitcoin if you can.

And you think what @teamsherry said is cost-effective? I don't think so. Making payment transactions online does not have to be that burdensome if the Bitcoin system has been best planned from the beginning. I know that the founder will never know that such a situation like this would happen, but as it is now, I think that when the time comes, the best thing is for us to use the LN, it is better, but we should be getting ready for some issues that are associated with it as well. Before using it, we should try to learn it as it is not working like the direct way that Bitcoin transactions work. Alternatively, one can use the service of the free accelerators too, but since the last time I used it, I mean about 2 months ago or more, it is the ViaBTC accelerating service that was working in this regard. If one can part away with a mere 18s/vb fee, I know that this will be a very good choice for us all.

But running our own nodes as suggested by that guy is not so encouraging if I were the one.

I think fees were higher in the past (late 2017). It led us to a scaling debate which triggered a hard fork called "Bitcoin Cash" and the adoption of SegWit on the main BTC blockchain. Perhaps, the Ordinals craze will lead us to similar events in the long run. Whatever happens, you can rest assured on-chain fees won't stay high forever.

In the meantime, you should seek for ways to save as much money as possible. Altcoins like Litecoin, Dogecoin, BNB, Solana, and Polygon are cheaper to use than Bitcoin itself. Or if you want to keep your BTC, you can always switch to the Lightning Network. Considering that Bitcoin has gone this far, it's safe to assume it will be with us for generations. Who knows if it becomes the next reserve currency of the world?

That's the talk between me and my small circle of crypto friends, the best way to solve the issue with the high fees is this but we're not really good with tech so we're still a bit in the dark when it comes to running nodes but I do think that this is a good solution. Also, we shouldn't really tolerate or celebrate ordinals anymore, they've been gone on for far too long and I've seen that the transaction fees have gone much lower than ever so I guess, we've stopped being fans of ordinals. Hopefully, this thing won't ever happen again because I don't know if I'll ever be able to make a profit if bitcoin starts pumping up and the transaction fees are so damn expensive, I'm not willing to sacrifice a huge chunk of what I hodl just to profit.

I guess you better start planning to run your own node of you want to enjoy the lightning network, so I guess to wait for a month to lump sum do you would be paying the charge only once should be your best option, unless you can utilise the Ln  to speed things up.