It Does Not Matter If You Have Been Using Bitcoin For A Long Time Or Have Recently Become Familiar With It. When Conducting A Bitcoin Transaction, It Will Be Useful For You To Know The Answers To These Seven Questions.

It may not be helpful for many regular users to know how bitcoin networking, hash rates, and miners work, but there are questions about how to calculate transfer fees and time for most users. On the other hand, you may have done bitcoin transactions many times, and you have never had the problem of not confirming the transaction, but the question is how to recover or cancel a transaction in these cases.

This article has tried to answer seven essential questions about bitcoin transactions.

1. How much does a bitcoin transaction cost?

The transaction fee equals the difference between the bitcoin sent and the bitcoin received. Theoretically, the transaction fee determines the speed at which a user transacts in a blockchain. When a miner approves a block in a Chinese partnership, all transactions within that block are approved.

The reward of a block is the sum of the transaction costs plus the block allowance, the current block extraction bonus that is halved after each hawing process. The miner receives all transaction costs and related subsidies when a new partnership is approved. On the other hand, the hash rate is halved with each hawing; reducing the hash rate increases the cost of extracting a new block, and as a result, the block reward decreases.

Because approving new blocks requires high computing power and energy, miners are encouraged to increase their fees. On the other hand, maintaining network security requires miners to remain in the network; in this regard, transaction fees play an important role.

From this link, you can see the average bitcoin transaction fee, but it should note that some exchanges set a fixed price, which can view in the fee tables of those exchanges to view the bitcoin withdrawal fee.

2. How are bitcoin transaction fees determined?

Transaction costs are determined based on the volume of transaction data and network congestion.

Since each Bitcoin block can only hold 1 megabyte of data, the number of transactions per block will be limited. Accordingly, more data blocks are required for more significant transactions, so more critical transactions are calculated byte.

When you want to send some bitcoins from your digital wallet, the wallet usually allows you to set the fee rate. You have to enter advanced settings in some wallets to view this section. This fee is based on Satoshi per unit of data consumed by your transaction in the blockchain and is denoted by sats / vByte. Each bitcoin is equivalent to 100 million Satoshi. The said rate is then multiplied by the size of your transaction, and the cost of the final transaction is calculated.

The commission amount may change if you want your transaction to be confirmed immediately. If you do not want to wait for just two sats / vByte, your transaction will usually verify in a day or a week.

Transaction costs also determine the speed of transaction confirmation.

When a user initiates a transaction, the transaction enters a meme pool, a pool of transactions not yet registered in the blockchain and stored in the cache.

After the transaction is placed in the money box, the miners choose the transaction based on the highest commission paid. When there is a long line of transactions awaiting approval for miners, the miners record the highest-paid transaction in the Chinese blockchain. When the number of transactions in the network decreases, transaction costs will also decrease.

Bitcoin digital currency exchanges, which are intermediaries between buyers and sellers, set commissions in two ways: Fixed commissions per transaction or a percentage of the total transaction volume in the last 30 days. Exchanges use a step-by-step structure to calculate transaction fees.

Fees are designed to encourage users to buy and sell cryptocurrencies continuously, thus reducing the cost of high-value, high-persistence transactions. Prices are usually higher for small, low-continuity transactions.

3. How long does it take to confirm a bit transaction?

The average time required to complete a bitcoin transaction depends on total network activity, hash rate, and transaction fee.

The average bitcoin transaction time is about ten minutes, but this time can change dramatically. If the bitcoin network is congested, unverified transactions in the package will pile up. Users have to pay more to make transactions faster, similar to what happened in April 1421, when the average cost of a Bitcoin transaction reached more than $ 58.

_{Graph of average cost of bitcoin transaction. Source: Ycharts}

However, transaction costs fell 57.97% from $ 4.4 to $ 1.8 by November of that year (November 2021). Some factors can be the reason for this reduction in fees. One of them is the rapid growth of the Bitcoin Lightning Network, which allows transactions to take place outside the Chinese blockchain, which acts as a catalyst. Another reason for the reduction in fees could be miners’ interest in processing transactions and their pessimism, thus reducing the difficulty of extracting the network, which indicates the problem of verifying bitcoin transactions.

Reducing congestion is another factor in lowering transaction costs. When you add a transaction to the bitcoin network, it remains in the memory until verified. Note that the size of the bitcoin block can be increased or decreased depending on the network decision. Because each bitcoin block is only 1 MB, a large ampule can encourage miners to approve more profitable transactions.

4. How to check the time of confirmation of a Bitcoin transaction?

The websites blockchain.com and Statista are two valuable resources for estimating the average time to complete a bitcoin transaction.

Transaction costs are usually based on Satoshi. Note that if you charge a small fee for the transaction, there is a risk that your transaction will remain on the long list of unapproved transactions. However, if the network is stagnant, there is a chance that the transaction will be approved, but this risk is not worth the test.

5. How to speed up bitcoin transactions?

In addition to speeding up the transaction by paying the higher fees mentioned below, another strategy is sending bitcoins during off-peak hours. Through the blockchain.com size chart, you can see when the number of unverified transactions is at a minimum.

BTC Nitro is a way to speed up bitcoin transactions. You can speed up trade-in in two ways, free or paid on this website. BTC Nitro replay your transaction on several bitcoin nodes worldwide, putting it back in the queue to remind miners that the marketing is ready to be processed.

Another website that can speed up bitcoin transactions for free is BitAccelerate. Enter the Bitcoin Transaction ID (TXID) in the corresponding bar and select Accelerate, which will republish the transaction through the services of this website in Bitcoin nodes. This website does the said action every six hours until the transaction is completed.

6. How can unrecognized bitcoin transactions be recovered or modified?

The problem of unapproved bitcoin transactions can be solved in two ways: by “Free Exchange Protocol (RBF)” or “Repayment through fee increase.”

The bitcoin transaction can no longer be returned once it is approved. But can a bitcoin transaction be canceled?

Yes, unapproved transactions can cancel if the blockchain has not been approved within 24 hours. An unapproved transaction is considered when at least three miners have not supported all the transactions during the extraction process. If your transaction is not approved during this period, you can cancel it.

It is possible to spread the Bitcoin transaction across the network for the second time using the RBF protocol, but it will cost more. As a result, miners can approve the transaction sooner, cancel the previous transaction, and start a newer one.

It remains to be seen whether your Bitcoin wallet supports the RBF protocol. Electron, samurai, and bitcoin blind wallets are among the software wallets and treasure trove of hardware wallets that support RBF. Before sending bitcoins, you can check if your purse has such a possibility to use it if necessary.

If your wallet does not support the RBF protocol, you should use the double-spend option. This method creates a new transaction with the same amount as before. It means re-sending bitcoins with higher fees. Miners often accept the latest marketing and return the previous transaction.

7. What happens if you send Bitcoin to Ethereum?

Technically, Bitcoin (BTC) cannot send to the Ethereum Wallet or ETH  to the Bitcoin Wallet. Most wallets will notify you beforehand.

Bitcoin sent to Walt Ethereum is lost and non-recoverable. Before sending Bitcoin or Ether, enter the destination address correctly. Otherwise, you risk losing your assets.

However, payments are sometimes approved in unusual circumstances; for example, if you send bitcoins to Litecoin Walt since both addresses start with the number 3, there is a possibility of accepting the transaction, but due to t. Still, due to address type, the capital is lost.

Have you ever had your Bitcoin transactions not approved? Which of these methods have you used in these cases?