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Topic: Segwit vs Legacy, fees? - page 2. (Read 357 times)

legendary
Activity: 1610
Merit: 1193
Gamble responsibly
March 18, 2021, 10:14:13 AM
#4
Confused, should I go segwit for seemingly lower fees?
It is good to go for segwit than wasting more btc on transaction fee, you can reduce money on fee significantly if you use segwit. There is a topic in beginners and help that can help you know more about the fee paid which is low in segwit.

Why do you need both segwit and legacy addresses? Before you make your decision, you will pay more fee why using legacy address for payment.

Legacy have the high transaction fee
Nested segwit (3-prefix addresses) can reduce the fee up to 26%
Native segwit (bc1- prefix addresses)  can reduce the fee up to 42%

Also know that you can transfer bitcoin to any of the addresses, you can transfer from segwit to legacy or from legacy to segwit. But using segwit will safe you fee while making Bitcoin transactions. The reason best for you to just send your bitcoin to native segwit addresses.

Just a small correction:
Using native segwit addresses, the transaction fee can be decreased even by more than 42%.

The transaction fee is decreased by 26% when there are 1 P2SH input and 2 outputs.
The transaction fee is decreased by 42% when there are 1 bech32 input and 1 output.

For example, size of a transaction including 10 bech32 inputs and 1 output would be about 722 vbytes and 1524 bytes. That's more than 52% reduce in transaction fee.

The best you can reach is around a 54% reduction. A P2PKH input is 148 vbytes, while a P2WPKH input is 68 vbytes, for a difference of 80 vbytes. 80/148 = 0.54. There are of course other differences between the size of outputs and the size of the transaction header, but these are very small compared to the size of inputs.

You shouldn't move your coins now to a Segwit address. There is no need. You are going to pay fees now, to pay less fees in the future? It is not worth, imo.
It depends on the amount, he can decide to transfer 0.01 btc and make more than 10 transactions from it.
legendary
Activity: 2352
Merit: 6089
bitcoindata.science
March 18, 2021, 06:17:16 AM
#3
I am holding legacy.
Confused, should I go segwit for seemingly lower fees?

You shouldn't move your coins now to a Segwit address. There is no need. You are going to pay fees now, to pay less fees in the future? It is not worth, imo.

But your new deposits should go to a segwit address, (addresses that start with 3 or bc1). Why? To pay less fees.

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Pros and cons of each?
This is the only advantage for segwit for common users: pay less fees when transferring.

From legacy to a native segwit, you save from 35% up to 50% on fees. You can simulate fees reduction here.

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Can you go back and forth?

Yes, at any time you can transfer your coins to a Legacy or a Segwit address. It is a normal transaction, you will only pay miners fees.
legendary
Activity: 2310
Merit: 4085
Farewell o_e_l_e_o
March 18, 2021, 06:04:50 AM
#2
Transactions with Segwit addresses can help you to save fees. You need to check platforms you are using that they support Segwit or not support it.
  • You can use your Legacy or Segwit address to send your bitcoin to any type of address.
  • If you want to withdraw your bitcoin from exchange to a Segwit address, the requirement is that exchange support Segwit for withdrawals.

Read

With any type of addresses, if you have good plans, when to move your bitcoin, you will have good fee reduction.
full member
Activity: 317
Merit: 110
March 18, 2021, 01:53:47 AM
#1
I am holding legacy.
Confused, should I go segwit for seemingly lower fees?
Pros and cons of each?
Can you go back and forth?

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