Topic: Strategies to save off Bitcoin fees? (Read 388 times)

It's always important to evolve in order to stay ahead of the game. So far, Bitcoin has been doing a pretty good job at it. With very talented developers working on the project day and night, Bitcoin will only get better in the future. My hope is that fees decline to new lows with upcoming network upgrades. But everything will depend on collaboration between miners and developers. Luckily, there's seems to be a "green light" for the approval of "Taproot" on the Bitcoin blockchain. This will improve Bitcoin's privacy and scalability in every way. Users will benefit the most as they experience a slight discount on transaction fees. If new upgrades continue to be approved by miners, then Bitcoin will be on a path towards non-stop success.

Nonetheless, Bitcoin's fees are certainly a lot lower than they were back in 2017. SegWit had a positive effect over network fees in such a short amount of time. It's a good thing that most crypto exchanges, and services are supporting SegWit. Now, it's only a matter of time before they adopt Native SegWit (bech32) for people to enjoy greater fee discounts. The Lightning Network's level of adoption is nowhere near close to that of the main Bitcoin blockchain. But that could be solved if developers improve user-friendliness. Once the Lightning Network becomes easy enough for everyday people to use, high fees would only become a thing of the past. In the meantime, I'd advise anyone to rely on SegWit and batch transactions in order to save as much fees as possible. Or you could simply choose an altcoin if you're in a hurry. High fees or not, Bitcoin will be here to stay. Just my thoughts

The thing I do in order to save off bitcoin fees is what you said converting it to some altcoin preferably XRP due to very small fee and almost instant transaction time but I can't use that method most of the time specially if I am required to send just in bitcoin in some of my transaction and what I do to pay lesser fees is to time when transaction fees are low which mostly happens in the morning in my time timezone.

Check out the last block & scroll about half way down, & check the fees associated with those transactions.

eg:

https://www.blockchain.com/btc/block/00000000000000000009fcb6f9931924f866140e90e819a6421ca5985dec292a

26 minutes after last block, so fees here are likely quite a bit higher than the norm for the day.

Anyway, this block explorer shows 5 transactions per page, so https://www.blockchain.com/btc/block/00000000000000000009fcb6f9931924f866140e90e819a6421ca5985dec292a?page=448 is the end.

Halfway through @ https://www.blockchain.com/btc/block/00000000000000000009fcb6f9931924f866140e90e819a6421ca5985dec292a?page=224 ;

31.595 sat/WU is fee paid.  So 31.5 should be fine, to send (probably) in the next block in this case, unless it takes 20+ minutes again.  Likely 15-20 is OK, if blocks start coming at typical pace (every 10 minutes), to send in the next block or the one after.

Tons of places overpay bigtime.  But I think a lot of these are businesses doing payouts, so they don't want any delay.

ed: I guess I send most of my stuff at around *10 sat/WU (5 is a bit low).  Eventually you'll get two blocks in quick succession and this tends to clear things out.

ed2:  Like this, block was a minute or so after last -- https://www.blockchain.com/btc/block/0000000000000000000c92a3c065037ec24a15fcbe877dd6b89e4f5e43ea9723?page=380 .... 8 sat/WU.  Tons of these, actually.  Must be some wallet that sets this as some default minimum, possibly.

The problem with high Bitcoin fees has been around for a long time, so SegWit has emerged which is proven to save Bitcoin fees. So my suggestion is
to choose a Bitcoin wallet that supports SegWit, usually Bitcoin addresses that already support SegWit start with 3 or Bc1. Another way is to use a wallet
that allows us to set our own transaction fees, because some wallets that default withdrawal fees usually impose quite high fees.

The next solution is to avoid making transactions during peak hours, we can check this by looking at the Bitcoin mempool. The last way maybe the most
used by many people is to convert our Bitcoin into altcoins, which definitely has a much cheaper transaction fee.

Wow. I am not familliar with that kind of wallet. I will definitely make some reseaech and possibly try it even once in order to gain a well knowledge and experience because just like the others  I am also one of the traders that burned by the high gas fees as of now. And I think if this is maybe a effective wallet, I might migrate there.

For me, I think one of the best thing that consider to save off fee is to wait until it'll go down. As of now even the other online wallet still having a high gas fee because of the ethereum. There are several wallets, or most of online wallet are eth based gas fee so that while eth is somehow pumping today, gas fees are also pumping. Sometimes it goes down yet it doesn't reach the gwei that safe gas fee before.

With time there is continued development or an update to ease the transaction process along with the fee. As a result segwit came to usage. Right much of the development is required for the micropayments. Soon we can expect perfect solution. Even now the transaction fee doesn't look to be high with large volume transactions, and this isn't helpful to the common people/small fund transfer.

Another thing, the fee mostly used show some rise during the time of bitcoin turning bullish. As said in the above post, for the transaction fee, only the time can provide us with the best.

No, not that way, you still experience a huge fee or you can't completely avoid the high fee for the microtransaction, or the worst, it might not enough your balance to move because it will eat the whole fee.  But if you have a bulk of transactions and you want to transact them at once, Lightning Network is the best answer, you can save a few fees if you try this.

You can use Electrum wallet for making Lightning Network for microtransactions.  You can create a channel for LN and follow this thread for more information, Electrum Lightning Network walkthrough.

Best advice!
You don't pay high fees when you don't make transactions, no sarcasm here.

There is little a guy can do to avoid fees when he is faced with a full mempool.
- you should consolidate inputs, yeah...what the hell can I do now, especially since I'm doing transactions and ending with more outputs as we speak, you can consolidate them if we hit fees of 2-3 satoshi but when was the last time that happned?
- choose a day with fewer transactions, again yea...let's all stop doing transactions on Wednesday and do them on Sunday, I wonder how this will end as I have a fuzzy picture about it
- use and altcoin, but if you have BTC it means to send BTC and exchange, ups there si a flaw already

Honestly, other than paying the required 10sat/b and hope to get a place on viabtc there is no real way to avoid higher fees.

Common guys, admit, this is gold:

The best way is to use a centralized service. Oh, what times we live in...

For me, I send a larger amount of bitcoin, and then I subdivide it into separate currencies so I have a variety of different ways to pay with cheaper transaction fees. Another way is to fill your WebMoney or Skrill wallet.
It also helps to diverse my portfolio.

I never move bitcoin worth less than about $100 it just isn't worth it and many places only support bitcoin so you end up paying a massive % of the total sale in fees. I really hope something is done soon. Especially with Eth since so many tokens rely on it. It makes trading incredibly expensive.

Based on my experience the fees are really high if you are only moving a small amount.

Sometimes I move my earning and I have to pay for $2 to $5 for a single transaction, and if I will only transact like $50, that would certainly hurt me, so for me the best idea to save fees is to limit moving small amount of bitcoin and wait until you accumulate it to a bigger amount so you'll not feel the fee.

Isn't the best way to sell btc for litecoin or bnb or nano and withdraw that way?

One certainty about the industry is that, it keeps on evolving as the years goes by, few years ago there was no SegWit or neither of the available method today that can help reduce the fees one pays for a transaction to get confirm. Its ok these highs fees are becoming an issue now so alternative ways of improving the technology can be worked upon as it's becoming frustrating to use the network without experiencing delay and it begin to seems the bitcoin network isn't ready for mass adoption becomes of this challenges.

While bitcoin is still the go option for faster/borderless transaction, it still isn't fair for the retail investors as this fees cut a lot from their funds. Bit the positive thing is this challenge won't last long as better alternative will be introduced ones it has been developed. At the moment, the strategy I used involves using alts and exchanges. No need to go into detail since it must have been explained above or you already have some clue on how to go about it. Glad the exchanges are now supporting SegWit addresses as well.

A very nice observation. Thank you so much for this. Your strategy will be very useful for saving Bitcoin fees at a time when crypto adoption is soaring like crazy. After all, many people are joining the Bitcoin bandwagon at a fast pace (which results in higher network congestion). It's a good thing developers pushed the SegWit upgrade on 2017, or fees would've been a lot higher than what they are right now. I usually try to batch transactions and use SegWit in order to save as much fees as possible. The Lightning Network is good, but not many people support it.

All in all, it's good to know that Bitcoin's mempool won't remain bloated for long. I've noticed that very early in the morning, a transaction I've sent with a low fee was automatically accepted by miners on the Blockchain. It took a day to receive 1 confirmation, but it was worth it. Despite the high fees, Bitcoin is still cheaper than a wire/bank transfer. It's extremely convenient for transferring large amounts of money across borders without "breaking the bank". With native SegWit transactions, you can enjoy a slight discount in network fees. Hopefully, developers will come up with new solutions to prevent fees from going any higher in the future.

Stop making suggestions without covering the pros and cons on the network/protocol. You post them as if they are going to make Bitcoin better without affecting the network negatively. There are externality costs. Change one parameter, some other parameter changes.

This is not 4 years ago, every service now accepts SegWit addresses. The only remaining ones that don't are very poor services with no security and shouldn't have been used for a lot of other reasons.

You should also pay 2 exchange fees for swapping bitcoin for that altcoin and back to bitcoin again. These fees are also calculated based on the size of the trade (a percentage based fee) so if you do it with higher amounts you'll pay a much higher fee.
You should also take the risk of using a weaker and less secure altcoin, in some cases centralized and mutable.
You should also end up waiting a much longer time for the altcoin transaction to be confirmed in most cases because majority of their networks are insecure and services demand a much higher number of confirmation.

This is already answered. 2 points that are usually forgotten are: reduce the input count and batch your payments if possible.
For example if you are getting paid, making a withdrawal from an exchange, ... try to let it accumulate more before you receive it in your wallet. For instance if you buy $10 worth of bitcoin every week, don't withdraw $10 every week, let it accumulate a little then withdraw. That way your wallet isn't filled with a lot of small inputs to spend later that increases the tx size.

I paid a transaction fee of 0.00019908 BTC almost 24 hours ago and still hasn't confirmed

This have become a dilemma ever since bitcoin hit high prices, you can't send small transactions without spending more on the transaction fees, if there's only a way we can get around this like the Lightning Network which up until now isn't even released despite being years in the making. Hopefully though they do something about it, we need affordable transactions now more than ever especially if we are all for the global adoption of bitcoin.

This is what im doing but the time wont really be precise because it wont really be just similar that you had tried on other day and the other ones will be on another time.

So the key here is to wait up for the right time where  the network isnt really heavily clogged up and you would definitely save up some fees since sat/byte thing would be much lesser.

but if you can wait up  and isnt on the rush then you can always set out below the minimum priority but be sure  that you wont really be going much lower if you dont like for your
transactions to get stuck for days.

Ive been having this kind of behavior for me to save up some fees specially on microtransactions.

The best strategy is to not make transactions when fees are high. If you need to deposit to some account, maybe an exchange or gambling site, do it when fees are low. They are actually low most of the time, spikes only happen when there's a lot of trading activity.

Other than that, try to convince the people you deal with to use Lightning Network, after all it's the future.

Definitely an interesting approach, have never thought about it. However, unfortunately for me, I am not dealing with large Bitcoin transactions (lol). Most times I've sent Bitcoin,  I wasn't in a hurry and used a lower transaction fee. Recently, when using the online BitGo wallet, the high priority would cost me $15 for a transaction worth of $300-350. Used medium priority ($2) and got confirmed in 3 and 12 hours respectively. (2 Transactions).