Bitcoin Transaction Fees

Supine

Supine

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I am trying to understand Bitcoin and so decided to open a Luno account with a small deposit to educate myself. I also created a Desktop Wallet.

Then, I purchased some BTC through Luno and then tried to send 0.005 to my desktop wallet. I cancelled the transaction when I noticed that the transaction fee on Luno for this was 0.00281326 BTC. That is a 56% fee!

Is this a typical fee for a bitcoin transaction of this amount?

Thanks
Russell.
 
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backstreetboy said:
Yes keep it in Luno and then hold otherwise wait till you have large amount to send.
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Ok, but now suppose that I was going to pay for a purchase at an online store for a similar amount. Would this also attract such a high transaction fee? Would this not then effectively make Bitcoin unfeasible for trading?
 
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Russell S said:
Ok, but now suppose that I was going to pay for a purchase at an online store for a similar amount. Would this also attract such a high transaction fee? Would this not then make Bitcoin unfeasible for trading?
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Bitcoin is still in it's early days. It's like a boat still docked at the harbour. There will be upgrades (segwit2x etc.) making transactions cheaper when everybody agrees on the timing.
 
I also send 0.005 a few days ago and my send fee was 0.000230. Not sure why yours was so hi.
The send fee fluctuates. The receive fee is constant at 0.0002.
 
backstreetboy said:
Bitcoin is still in it's early days. It's like a boat still docked at the harbour. There will be upgrades (segwit2x etc.) making transactions cheaper when everybody agrees on the timing.
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Dunno where you've been the last week but seg2x is cancelled. There is no block increase solution on the cards, the next thing in line is Lightning Network. Sidechains with their own fees ;) still some months away at best.

btc is a cripple right now in terms of usability.
 
Russell S said:
Ok, but now suppose that I was going to pay for a purchase at an online store for a similar amount. Would this also attract such a high transaction fee? Would this not then effectively make Bitcoin unfeasible for trading?
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Other people have noticed what you noticed.

https://www.bitcoincash.org/

Under R1 tx fee to get on the next block
 
pecano said:
Dunno where you've been the last week but seg2x is cancelled. There is no block increase solution on the cards, the next thing in line is Lightning Network. Sidechains with their own fees ;) still some months away at best.

btc is a cripple right now in terms of usability.
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It's only suspended. Might still happen in the future :whistle:
 
Replied to a similar PM, I'll share it for everyones benefit :)

It's important to remember that we don't set the fees, it's rather derived directly from the Bitcoin network.

Fees depend on a lot of factors, one being the size of the mempool, how often blocks are mined etc etc.

It's incredibly expensive to send on-chain transactions, you can confirm this via various other sources. A good one to use is https://bitcoinfees.earn.com/

We've also got a detailed post about how fees are calculated and charged:

https://www.luno.com/blog/en/post/bitcoin-network-fees
https://www.luno.com/blog/en/post/dynamic-send-fees

Hope that helps a bit.
 
Lunomoney said:
Replied to a similar PM, I'll share it for everyones benefit :)

It's important to remember that we don't set the fees, it's rather derived directly from the Bitcoin network.

Fees depend on a lot of factors, one being the size of the mempool, how often blocks are mined etc etc.

It's incredibly expensive to send on-chain transactions, you can confirm this via various other sources. A good one to use is https://bitcoinfees.earn.com/

We've also got a detailed post about how fees are calculated and charged:

https://www.luno.com/blog/en/post/bitcoin-network-fees
https://www.luno.com/blog/en/post/dynamic-send-fees

Hope that helps a bit.
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Thanks for the information - I do understand that the fees are network based and not set by you. My concern as I mentioned previously is that these fees are going to prevent Bitcoin from becoming feasible as a currency for standard purchases.
 
Russell S said:
Thanks for the information - I do understand that the fees are network based and not set by you. My concern as I mentioned previously is that these fees are going to prevent Bitcoin from becoming feasible as a currency for standard purchases.
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It's definitely a real problem, and something that's been debated for years without much end in sight :(
 
Will just leave this here. 0.005 is about $32.59. Exodus quotes a fee of 0.001695 or $11.05. So yeah it's expensive because of the huge gains that were never anticipated but Luno does seem to choose fees to be on the high side.
 
Swa said:
Will just leave this here. 0.005 is about $32.59. Exodus quotes a fee of 0.001695 or $11.05. So yeah it's expensive because of the huge gains that were never anticipated but Luno does seem to choose fees to be on the high side.
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Huh? Huge gains were never anticipated? They were very much anticipated but there is a major controlling player who has so far been very successful in keeping to the no-block-increase agenda.

Luno fees tend to be high because they tend to go with priority over economy (i.e. you get your coins quicker).
 
pecano said:
Huh? Huge gains were never anticipated? They were very much anticipated but there is a major controlling player who has so far been very successful in keeping to the no-block-increase agenda.

Luno fees tend to be high because they tend to go with priority over economy (i.e. you get your coins quicker).
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Nope they weren't. Try to find in the founding document anything relating to the current price. It's just something nobody ever foresaw.

EDIT: And there was a blocksize increase, with Bitcoin Cash.
 
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Luno don't state what their dynamic fee breakdown is, but the cheapest time to transfer is when network activity is low like weekends or very late at night. They really need to clarify this or give us satoshi/byte options.
 
How do wallets like Jaxx and Exodus calculate the fees? It seems to be a set amount which can then take minutes to hours to execute. Ever since Luno implemented this dynamic fee structure nonsense there have been complaints of how expensive it is.
 
Swa said:
How do wallets like Jaxx and Exodus calculate the fees? It seems to be a set amount which can then take minutes to hours to execute. Ever since Luno implemented this dynamic fee structure nonsense there have been complaints of how expensive it is.
Click to expand...
With those two they try to get your transaction executed in the shortest possible time = highest miner fee
 
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