What are Network Fees?
Network Fees are transaction fees charged for processing a cryptocurrency transfer. It is typically paid for by the sender and received by cryptocurrency miners.
Who are Cryptocurrency Miners?
Miners are individuals who solve complex cryptographic problems – such as Bitcoin transactions – and ensure they are confirmed by the Bitcoin network. The fees act as an incentive for miners to include a transaction in a Bitcoin block and process them as quickly as possible. Although network fees aren’t fixed, they are competitive. This is because the space available for transactions in a block is limited; meaning that to get your transaction processed quickly, you will have to outbid other users. Buycoins uses an estimated fee to ensure transactions are processed quickly for as little as possible.
How are Buycoins Network Fees estimated?
Our estimated Network Fees are set by taking all transactions in the last 30 blocks and calculating the lowest possible fee (per KB) that has more than a 75% chance of getting into the first block.
When do I get charged a Network Fee on Buycoins?
Network fees are only applicable when cryptocurrency is leaving your Buycoins Wallet to another Wallet address. Therefore, a Network Fee will be applied when you send cryptocurrency from your Buycoins Wallet to an external wallet.