How do mining commissions work?

When operating with cryptocurrencies, mining fees are essential commissions for validating transactions on the blockchain, and their cost varies according to the network. This article will explain how these fees are calculated, why they are important, and will offer you recommendations to optimize your sends from Bit2Me.

Important points:

• In cryptocurrencies such as Bitcoin, Ethereum, and many others, miners are the ones in charge of validating transactions and generating new blocks for the Blockchain. Due to the way cryptocurrencies work, ALL transactions must pass through them.
  
  
• Miners charge a commission or mining fee (external to Bit2Me). This commission is part of the miners' profit, a profit with which they pay the high electricity costs to guarantee the efficiency and security of the Bitcoin network (or another cryptocurrency).

How is the mining commission or fee calculated?

• Calculating or determining the value of the mining commission or fee depends on several factors. One of the most determining is the size of the transaction within the block. But in addition, the activity of the network that exists at the time of the transaction also influences, as well as the urgency or speed with which you want your operation to be confirmed.
  
  
• At Bit2Me, we make an estimation of the commission that each transaction will have to arrive at its destination in the best conditions and as soon as possible. As we have explained previously, the network does not have a fixed miner rate/fee. That means that it can vary and for that reason we must ensure that your transaction is executed on the Blockchain constantly.

Bit2Me's recommendations to avoid paying such a high fee:

There are different scenarios, so below we will describe the different scenarios and our recommendations.

• SCENARIO 1: You want to send a Bitcoin payment to a friend
  Your friend can create a user account at Bit2Me. This will allow you to send him instant, free payments (and without paying miner fees). Once your friend is registered, you just have to send the funds you want via Bit2Me Pay, indicating the email address, phone number or alias that your friend has verified in their Bit2Me account.
  
  
• SCENARIO 2: You want to send a Bitcoin payment to another platform / exchange
  If the Bitcoin network is overloaded, instead of sending the payment via Bitcoin, you can make the change to another cryptocurrency (even a stable one like USDC) and then send the payment to the destination where you can change it back to Bitcoin if you wish. This process will allow you to jump from one platform to another with low mining costs and high speed.
  
  
• SCENARIO 3: You want to make a payment to a store, company or service provider
  In this case, the best thing is to ask the recipient if you can pay in another cryptocurrency. Another option is to ask them to create an account at Bit2Me, so you can use SCENARIO 1.