Topic: Network fee is killing my small profit - page 3. (Read 873 times)

Avoiding frequent transactions is not an option for Little Mouse I believe. He just said in his recent comment that he trades instantly. If someone's selling, he buys and if someone's buying, he sells. In short, he competes with other traders in their local p2p community.

Is the rate that competitive in your community that you cannot increase your mark up to compensate for the fees?

Since network fee is variable, you can also adjust your rate.
If fees are high, sell higher.
If fees are low, you can choose your normal rate.

Never mind, I would like to share you a secret. When fee is high enough for getting confirmed within 1st block, I think custodial wallets like Coinbase offers the cheapest fee. Because they now do batch payments which give them the chance of saving a lot of fees. As a result, they charge same fee from everyone.
If you simply use 1 input and 2 output in non custodial wallets, I think you will pay much higher than what coinbase charges, the case is true when cheapest and fastest fee is 100 sat+.
I do not accept no confirmation tx and same my clients also does. As a result, we have to use the maximum required fee.

No, I meant you moved your bitcoin from non-custodial wallet or from exchange wallet because it decides whether you will have control on fees.
Now, you can move your bitcoin at cheaper fees (see above). Of course, fee will be higher if you use custodial wallet (you mostly are not allowed to customize fee), and cheaper if you can choose your fees in non-custodial wallets (with some delay obviously).
Instantly means your transactions should be confirmed in next one block that in turn put you into a fee race. The race always charges you as highest fees as possible, not cheap for sure.
See above, instant transactions mean both sellers and buyers have to accept highest fees. Cheaper fees mean a bit of delays. Cheapest fees mean your transactions have probability that won't be confirmed and will be dropped out of mempool. It is safe if you move your bitcoins for yourself (from wallet to wallet, from wallet to exchange, all belong to you).

BUT it is risky for bitcoin tradings: If transaction won't be confirmed and dropped out of mempool, you won't receive bitcoin but the trade partner already receive Bangladesh fiat, example. You won't be able to call him / her back to resend those bitcoin to you. It is kind of unofficial scam or you scam yourself by requiring cheapest fees on tradings.

From my experience, with such tradings, you should deal with partner who is responsible for fees. And fee should be taken into calculation of final income (both BTC and fiat).

The best way to deal with the current situation is right now to avoid frequent transactions.
I mean you can just hold your money for a longer period of time and gather all your profits together.
When you have a decent amount of BTC stored then only sell it.
Moreover you can also convert the BTC into a stable altcoin and can sell it, the fees i am sure will be comparatively less than that of Bitcoin.
And as far Coinbase is considered i would rather advice to stay away from it. If you can't provide them a Legit way of earning the BTC, they will liquidate your BTC for no reason.

1. I am from Bangladesh if you mean that. I have BTC in custodial wallet, non custodial wallet both.
2. When I need to move BTC.

Does not matter even if I can choose the fee, for example I have fund in my electrum wallet but now, the fee is so high that if I use my preferred fee, tx will not be confirmed instantly.

It does not depend which day it is. When I have buyer, I sell and when someone wants to sell BTC, I have to buy. Most of the times, I buy and sell instantly ad I have community who are in need of BTC always.

You see, as I expected yesterday:

The mempool is clearer now and as of writing, if you are in hurry, 5 satoshis/ byte to move your bitcoin is enough. I also expect to see the mempool clearer a little more next hours and the cheaper fees around 3 satoshis/byte.

With the network status, I think it takes days to clear up all transactions at 1 sat/ byte so I won't expect to see the cheapest fee soon. Anyway, as always, you have cheaper fees in the weekend, especially on Sunday.

Additionally, to have better overview on the effects, please view the 1-week charts

Source of charts: https://jochen-hoenicke.de/queue/#1,24h

Transaction fees have always been the problem for small scale traders like us. Personally, I stopped due to this huge transaction fees. I realized that almost 50% of my profits were being used for transaction fees. The nature of transaction fees for smaller transactions is one disadvantage making it difficult for some people to adopt to crypto business transactions. 

Yeah some exchange and even mobile wallets required more fees than it used to be in converting fiat to crypto and sending to other wallet, and the confirmations also take too long to confirm than the usual, but usually if i gain some of my profits in trading i wait until the fees become lower and when i'm sending it to my wallet, sometimes i usually choose xrp or xlm because of the lower fees and a bit faster confirmations. And just like you said maybe gather your funds up to 300 or something or choose some good exchange with lower fees.

You can use electrum wallet which is very customizable to set lower fees for BTC transection.Hope you will now have to pay lower fees than before.

I'm from Bangladesh also and I do this same type of business some times if I have enough supply of bitcoin from my sellers. But for that I always use coinbase for this business and most of the sellers like me from BD use coinbase also.
There are some benefits of using coinbase for buy sell btc in Bangladesh.
1. It doesn't take any charges or fees if you buy btc from another coinbase user. He/she can easily send you btc with your email address.
2. The fastest transfer speed. It takes only few seconds to confirm a transaction in coinbase if you are receiving it from another coinbase user.
3. I use it mostly because it is also easy to sell in BD because almost everyone use coinbase here.

I think you can  also switch coinbase if your buyers are using it too. It will give you extra profit also.

there are historically some points were btc transaction are not cheap! you should be aware of this...
What you can do? You can try to pay less fee and have your transaction confirmed after a while.
You can try to trade using online wallets that offer to pay your fees (like coinpot).
You can try to make the same "trick" with another coin (like Dogecoin) or try to use it as a medium for exchange in btc.
Probably it's just matter of time and we will see again better price for our fees...

Cryptocurrency specifically Bitcoin is not legal in Bangladesh.But we are using bitcoin for our transaction.And I didn't face any problem till now.But some people arrested because I think they opened a local exchange where they buy sell Btc,Eth and other currency to BDT(Bangladeshi currency).And they have scammed many people through their website.So many complaints are filled by public and I think they are also involved many illegal things through Btc.Thats why they are arrested so far what I have heard.

As far as I know, crypto currency is not legal in Bangladesh but many people are using crypto currency there though it is illegal. But recently I saw a news where government proposed to enter on blockchain based technology.

As you sell bitcoin on local people, try to transfer bitcoin through coinbase email. By this method, you will be able to transfer bitcoin instantly and it is totally free. Then you will be able to make some extra profit. 

Bitcoin price is surging so expect a congested network that will define the transaction fee, the more congested it gets the higher the fee you will be paying for. And this is why you should calculating everything before making a sell out especially when you only got a small profit, I don't wonder why you are not getting a profit because you are paying a quite high transaction. Besides you'll see the fee before selling so why decide to sell with a small profit? Raise the level of risk that you are taking, don't take it too easy , you are overlooking the expenses of having the profit.

You're trading though, so you're not incurring any fees until you actually withdraw the money. The fee you pay also isn't Bitcoin's miner fee but the trading platform's own fee for withdrawal. So you're angry at the platform not Bitcoin.

And you knew all this already anyway before you started trading. So what's the problem here?

I guess fees are just common problems when investing in cryptocurrency or especially in bitcoin since the market value is always increasing the same as the network fee.

Sometimes there was some platform that you needed to transfer your bitcoin in order to withdraw that is adding to the fee, I guess investing directly in a trusted wallet where you could immediately take out the bitcoin or convert it is a good option.

Btc transaction fee is so high since the price started rising recently. And now the bitcoin network seems busy. Currently there are more unconfirmed tx than normal time. This situation won't last forever. Maybe you are afraid of price drop that's why you do instant trade, right?
As you trade with small amount you can't make any good profit for the high tx fee. So better to do larger trade. Or share the tx fee equally with the receiver. Hope they will understand you and agree with it. By this you can make little more profit.

I guess you have to stop doing small trade if you wish to make any profit. I don't see any other option over here other than using third party wallets (risky!) like coinbase. But looks like you have already mentioned that you can't use coinbase due to some legally funded source reason (not sure what you mean by this, but I guess you mean that coinsbase doesn't serve your country or something).
Or you can switch and start selling other crypto currencies.

We need to deal with that because network fees make the bitcoin work and move. Without network fees, authorities will surely not process your transactions and they will not take actions for you. It is really a problem when your profit is not enough to shoulder the network fees that you need to pay because it will make your profit to be nonsense. In order for cryptocurrency network to work properly, you should really pay for it to prevent delays with your transactions. Increasing of fees are normal but this is our disadvantage when we earn our profits, instead of saving it, we will just spend it for fees.