Types of crypto transactions fees

When you hear about fees for cryptocurrency transactions, they’re generally referring to the following types:

1. Blockchain fees

When you send a cryptocurrency transaction, it is recorded on the blockchain. All cryptocurrencies, including Bitcoin and Ethereum, fall into this category.

Every blockchain has a block size limit, which means that each block mined on the chain may only contain a specific number of transactions. With more transactions on the blockchain, the network becomes more crowded, and miners will demand greater fees to prioritise and confirm your transaction.

2. Wallet fees

Your wallet chooses the coins with the highest worth to pay your fee when you send a transaction. If the value of the coins is less than the fee, it will choose other coins to pay the fee.

The storage of your currency is frequently charged by wallet providers. You usually don’t have direct control over your funds if you keep your coins on an exchange or in a software/hardware wallet. You have faith in the third party to store your data securely and provide you with access whenever you need it.

3. Crypto exchange fees

Crypto trading fees play a vital role when choosing a crypto exchange. Cryptocurrency exchange fees vary for each category and are usually based on a maker-taker model. 

Exchange fees can affect your bottom line by a large margin, so it is always worth checking them out. You may find that some crypto exchanges charge higher deposit and withdrawal fees than others, while other trading platforms offer lower maker fees but higher taker fees.

The Cheapest Crypto to Send

1. TRON

Tron is a blockchain-based platform similar to Ethereum, which aims to establish a worldwide free content entertainment network. Thanks to the protocol, each user can freely publish, save, and transfer crypto. TRON broke away from Ethereum in 2017 after the ERC20 token migration was complete.

The average transaction charge is currently a fraction of a cent, making it an excellent choice for sending and receiving money. Tether (USDT) is also supported on the TRON network, allowing you to send and receive money with no fees and almost instantaneous transfers.

2. Ripple

Another cheaper way to send money anywhere is through Ripple. XRP is a fast, secure, and low-cost crypto. This makes it ideal for banks and payment providers.

The system works using a consensus ledger that allows anyone to plug in any currency or commodity from any country. The fact that it only takes about three seconds to send money anywhere in the world is one of the biggest draws of Ripple. The cost to send XRP is just a fraction of a cent.

3. Stellar

Stellar was launched in 2014 as a fork of Ripple’s protocol (XRP). In contrast, Ripple focuses on serving banks and financial institutions, Stellar aims to provide a way for people to send and receive money to each other. In other words, it wants to be the PayPal of cryptocurrencies.

A unique feature of Stellar is that it is not a pure proof-of-work cryptocurrency like Bitcoin or Litecoin. Instead, there are 100 billion XLM tokens in existence, all created at the launch time. 

4. Ethereum Classic

Ethereum Classic is the original blockchain of Ethereum, which was created due to the DAO Hard Fork on July 20, 2016. The community that rejected the hard fork solution decided to continue on the original chain and keep the consensus rules of the Ethereum network.

Ethereum Classic offers a decentralized Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can execute scripts leveraging an international network of public nodes. Ethereum Classic also provides a value token called “classic ether,” which can be transferred between participants, stored in a cryptocurrency wallet, and used to compensate participant nodes for computations performed for free.

5. Nano

Nano is a fast and fee-less digital currency that can be used to send and receive payments anytime, anywhere in the world. With Nano, transactions are instant, secure, and nearly free.

The Nano protocol is designed to be a low-latency cryptocurrency with high throughput, built on a block-lattice data structure where each account has its own blockchain. This allows for unlimited scalability, eliminating the need for mining or fees.

6. DASH

DASH is the third most popular cryptocurrency by market capitalization, and its price increased by over 400% in 2017. This digital asset was designed to solve bitcoin’s issues with slow transactions and high fees.

DASH enables users to send payments anywhere for less than a penny ($0.005). The network also allows individuals to conduct private transactions, which cannot be tracked. It known to be a decentralized autonomous organization (DAO) that supports community-based governance and self-funding through a treasury system.

7. Litecoin

Litecoin is peer-to-peer Internet money that allows for near-instant, low-cost payments to anyone around the globe. Litecoin is a decentralized worldwide payment network that has no central authority.

Litecoin is recognized as a proven medium of commerce that complements Bitcoin, with a large industry following, trading volume, and liquidity. On average, the transaction fee is around $0.0070 per transaction, and it takes around two minutes to settle each transaction.

What Influences the Crypto Fee?

1. How busy the network is

The amount of traffic directly impacts the fee on the network. More transactions mean more competition for space in a block. This is why the fees have been rising lately, and with the price of BTC going up, you can expect that to continue for the foreseeable future.

2. Transaction speeds

The fees are also impacted by transaction speed. A transaction that spends a lot of inputs, i.e., moves around a lot of money, results in more data, which means it takes up more space in a block. For this reason, Bitcoin Core has an option where it tries to consolidate your small outputs into larger ones when making payments. This can save you money if you send out a lot of small amounts at once, which happens when you make many purchases at once.

3. The amount of crypto you want to send

The more considerable amount of money you want to send, the more space that will take up on a blockchain for verification. Since miners can only add so many transactions per block and there’s a finite number of blocks being added every day, it will be harder for your transaction to get included if you’re sending a large amount of money.

When you send crypto and include a small fee, there’s no guarantee your transaction will go through. If enough people are sending bitcoin and they all include small fees, then some people will have their transactions dropped because there isn’t room for all of them in that block.

The takeaway from this is that many factors influence the fee you will be charged when transferring cryptocurrency. Some, like the speed of the transaction itself and the number of transactions being processed at a given time, are directly within your control. Others, like network congestion, are not.

Send Your Crypto Cheaply to Hi.com to Earn Interest

HI is recognized as one of the leading cryptocurrencies you can stake to earn high interest. You can earn up to 20% APY in interest, paid out daily. The HI coins earned from the daily reward will be credited to your account but will only be unlocked for withdrawal after a year.

Here’s an easy guide on how to transfer your crypto to hi.com.

• Access hi.com via WhatsApp or Telegram. Next, type “hi” in the chat, and a menu will open, allowing you to create an account. Follow the instructions to complete the signup and access your hi wallet. When you create an account, your hi wallet is automatically created.
• Tap on the hi logo on the main screen to summon the menu, and click on Deposit 
• Select the cryptocurrency that you’d like to deposit from the drop-down menu. 
• Once you’ve selected the crypto you are depositing, let’s say USDT, copy the Deposit Address to your clipboard and confirm. Congratulations, you’ve just transferred crypto to your hi wallet.