Bitcoin Fees

Bitcoin transaction fees are determined by the supply and demand dynamics of the Bitcoin network. When the network is congested, and there are many transactions competing for limited space in the blocks, fees tend to rise. Conversely, when the network is less congested, fees may decrease.

Bitcoin transaction fees are usually calculated based on the size of the transaction in bytes, rather than the amount being sent. Transactions with more inputs and outputs (that is, more complicated transactions) will require more data to be included in the blockchain and thus will have higher fees.

The fee calculation is based on the following:

  • Fee per byte (satoshis/byte): The user can set the fee per byte for your transaction. The unit is satoshis, the smallest denomination of Bitcoin (1 Bitcoin = 100,0 satoshis).
  • Total Fee: The total fee is calculated by multiplying the transaction size (bytes) by your chosen fee per byte (satoshis/byte).

Fordefi provides the option to select from different fee levels, depending on how quickly the user wants the transaction to be confirmed.