How do mining commissions work?
- The miners are in charge of validating the operations, generating new blocks, adding them to the BlockChain and securing the network.
- In order a transaction to be confirmed on the Blockchain, you need to pay a commission or mining fee (external to Bit2Me). This serves to keep the miners operational and ensure the efficiency and security of the network.
- Mining commission or fee are small amounts of cryptocurrencies assigned to miners to reward them for the work done and to process a transaction.
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 factors is the size of the transaction within the block. But in addition, the activity of the network also influences at the time of the transaction. As well as, the urgency or speed in which you want your operation to be confirmed.
- At Bit2Me, we make a forecast of the commission that each transaction will have so that it reaches its destination in the best conditions and time possible. As explained before, the network does not have a fixed rate / fee for miners. That means it can vary every second so we must make sure that your transaction is executed in the BlockChain.
In order not to have calculating the mining fee, we facilitate the operation by making an estimate that may even be less than what the operation actually costs.
Bit2Me recommendations to avoid paying such a high fee:
- We recommend using the Bit2Me Wallet and in this way you have instant transactions and you are not paying mining commission (and also if you would participate in the affiliate program)
- Find out if the website where you want to send accepts other cryptocurrencies (stablecoin)
- Make an exchange for a stablecoin or another cryptocurrency to withdraw or send
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