What Are Bitcoin Fees and How to Get Them Waived

Fight and Waive Fees What Are Bitcoin Fees and How to Get Them Waived

What Are Bitcoin Fees and How to Get Them Waived

Bitcoin fees are the difference between money sent to the blockchain and the amount you receive. These fees are essential components of the Bitcoin blockchain network. They prevent spam transactions that could slow down and clog the network. They also work as incentives to validate transactions and subsidize the reducing blockchain subsidies, ensuring miners' profit and supporting the network's security.

To put things in perspective, Bitcoin fees have been fluctuating between $24 and $31 lately. This can result in a huge amount, especially if the blockchain overloads and you're making a huge transaction. You don't deserve to pay this kind of amount for your transaction. At DoNotPay, we have created the Fight and Waive Fees product that can help you fight your high Bitcoin fees easily. Read on to learn more about Bitcoin fees and how you can use our product to waive the fees. 

How Are Bitcoin Fees Determined?

Bitcoin fees result from transaction data volume and network congestion. A block can contain up to 4MB of data, meaning there's a limit to the number of transactions processed in one block. Therefore, if you're making large transactions, they would take up more of your block data, resulting in high transaction fees.

If you are sending your transaction from your Bitcoin wallet, the wallet will display several fee rates you can select. These fees are calculated in satoshis per data unit or sats/byte. Therefore, your total Bitcoin transaction is the rate multiplied by the size of your transaction.

Please note, the optimal rate can vary according to the speed of your transaction. If you don't mind waiting, you can pay 2sats/vByte to allow the transaction to be confirmed within a day or a week.

Institutional Transaction Fees

Institutional transaction fees are Bitcoin fees that apply to the Bitcoin exchange. This is a platform that matches buyers and sellers. It calculates its fees in the following two ways:

  1. As a flat fee per transaction
  2. As a percentage of the 30-day total transaction volume

In these two ways, the exchange implements a tiered fee structure depending on the total dollar volume traded. This tiered fee structure is meant to incentivize frequent trading. Therefore, these fees are lower for high-value and frequent transactions and higher for infrequent transactions.

How Do You Avoid Bitcoin Fees?

You cannot entirely avoid Bitcoin transaction fees. However, there are opportunities to reduce your expenses if you understand how the Bitcoin network functions and use the best software. Here are a few measures you can apply to reduce your Bitcoin fees.

Wait for the Right TimeThe best time to incur low Bitcoin fees is when the blockchain isn't crowded. For instance, fewer sales are made on weekends when businesses are closed. Therefore, you will have extra time for the transfers to clear.
Use Exchange With Commission-Free TradingTrading apps like Robinhood has made cryptocurrency trading commission-free. Other trading apps that offer free-fee trials like Phemex can be suitable platforms that will help you reduce your fees.
Buy Your Bitcoins With CoinsIf you're planning to liquidate your bitcoins into fiat-government-backed currency, you will likely face a huge fee to withdraw and deposit into your digital wallet. However, using coins is free in most cases and is a good strategy to reduce and eliminate your bitcoin fees.
Use Wallets Compliant With Scaling TechnologySegwit transfer, a Bitcoin exchange platform, can help you reduce your charge rates to up to 30% smaller than a bitcoin wallet transfer. Therefore, if your transfer costs $15, a Segwit transaction will cost as little as $10.50.

Again, it requires a detailed understanding of the Bitcoin function and software that would help you cut down on your Bitcoin fees. Determining this can be overwhelming, especially if you're a first-timer. At DoNotPay, we can help you waive your high Bitcoin fees with our easy process.

Can't Fight Bitcoin Fees by Yourself? What Should You Do Next?

Is fighting your Bitcoin fees proving to be challenging? DoNotPay got your back. We can help you appeal your fees with the following 3 steps:

  1. Search "appeal fees" on DoNotPay, choose the Fight and Waive Fees product, and select the type of fee you want to appeal. 
  2. Select the merchant you want to appeal fees for and enter the details of your transaction, including an associated account if you have one. 
  3. Submit your case! DoNotPay will generate the best argument for your case and make sure your fee waiver request gets sent to the merchant for processing. 

Solve Other Issues With Our Fight and Waive Fees Product

At DoNotPay, our pursuit of fighting high fees doesn't end at Bitcoin fees. We can help you fight and waive several types of fees, all at the click of a button. Here are ways we can help you solve your issue:

DonotPay can also help you solve other problems such as:

Reasons Why You Should Use DoNotPay to Fight Bitcoin Fees

You don't have to follow all the rigid procedures described above to reduce your Bitcoin fees. With our product, all you have to do is follow the simple steps, and you can rest assured that we'll make the best case for you. Sign up today, and let's help you fight your high Bitcoin fees with ease.

Bitcoin Fees — Frequently Asked Questions

What is the Bitcoin transaction fee for $100?

Bitcoin transaction fees based on different payment methods are as follows:

  • Bitcoin $100 urgent: $0.43
  • Bitcoin $100 non-urgent: $0.05
  • Visa $100: $0.59
  • PayPal $100: $0.59

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