Vital info for Newbies regarding fees

Nachi888

newbie

Activity: 20

Merit: 0

Thank you!!! Grin

This is exactly the info I was looking for, the best explanation and a very valuable information for all newbies who deal with Satochis.

It does make sense and now I just have to adjust the strategy in managing my "savings"

This also relates to why some pools and faucets have minimum payout of 0.01 BTC (like Slushe's) or a 100k Satochis

I thought it was just to make the pool owners richer from people who start mining and never reach the minimum, bcs it takes forever to mine this amount in BTC.

BlockChainLottery

sr. member

Activity: 332

Merit: 250

AwesomeDice.net

Quote from: bitcoinarmory.com/about/faqs

Sending less than 0.01 BTC to any recipient — The network considers these small outputs to be “dust,” and discourages them by requiring a fee. If it was not discouraged, someone could take 1.0 BTC, and create 1,000,000 transactions of 0.000001 BTC each, for free, which would clog the network.

Other reason, same outcome. Don't forget, if you move coins, even from your own wallet to another that you own, it still is included in the block chain and it uses resources of the miners. They just get a compensation.

Nachi888

newbie

Activity: 20

Merit: 0

Thank you for the explanation, but maybe you misunderstood me.

Those coins were sent in 1 chunk to my local wallet after many days of collecting micro payments on coinbox.me

The Bitcoins are already in my local connected wallet.
Now, since I have them in one wallet, I wanted to move them to another wallet to see how it works, just like moving regular money change coins from one pocket to another.

When I move physical coins from one place to another they don't lose on their denominated value and there is no fees.

In here I tried to move all I had: 0.00016519 BTC from one local wallet to another and they tried to charge me over 60% of my savings to do so just for 1 transaction.

I think that is ridiculous. These coins are already in the system and don't need to be mined any more.

Cryptopher

legendary

Activity: 1789

Merit: 1008

Keep it dense, yeah?

Quote from: BlockChainLottery on January 17, 2014, 05:36:42 PM

When you collect satochis from faucets, it means you have a lot of inputs with a small amount of BTC. When you make a new transaction you bundle all these small amounts, which in turn causes a large set of data. And the more data, the higher the fee. Fee is voluntary, but in most wallets mandatory. It's for your own good, otherwise it probably will never be accepted by miners. The fee ends up with the miner who mines the block.

That's a fine explanation there - I didn't realise that these faucets would lead to such an amount of data, but I can see how now. Thanks for sharing.

BlockChainLottery

sr. member

Activity: 332

Merit: 250

AwesomeDice.net

When you collect satochis from faucets, it means you have a lot of inputs with a small amount of BTC. When you make a new transaction you bundle all these small amounts, which in turn causes a large set of data. And the more data, the higher the fee. Fee is voluntary, but in most wallets mandatory. It's for your own good, otherwise it probably will never be accepted by miners. The fee ends up with the miner who mines the block.

Nachi888

newbie

Activity: 20

Merit: 0

I just did some faucet mining and got 0.00016519 BTC -- So, in their terms 16,519 Satochi.
It was sent to my wallet and it's all good, however, when I tried to send it to my "savings"(LOL) or a holding wallet,
the Armory wallet tried to charge me 0.0001 BTC as a "transaction fee" and would refuse if I have changed the amount to 0.0000.

I was under impression that transaction fees are voluntary and not mandatory and this is trying to take in 1 swipe majority of my savings, the whole 10,000 satochi - this amount takes many days of work to collect.

Could anyone more knowledgeable explain how it works?

Is there a way to send those coins from one wallet to another without any fees?
Who is collecting them? (I use local wallet, so my computer does the processing).

What are the fees (if any) for other coins and wallets?

Any other info in this regard would be greatly appreciated and very useful to all newbies.

Thank you.

Topic: Vital info for Newbies regarding fees (Read 558 times)