Use Bitcoin Lightning instead of Bitcoin!
If you are not using Cash App, Bitcoin Cash (BCH) has drastically lower network fees and faster transactions times than Bitcoin (BTC), which you can read about HERE. If you still prefer to use Bitcoin (BTC) please continue below:
For those of you using Bitcoin (BTC) wallets other than Cash App, please read the following:
There are a few different things you can do to minimize your network fees when sending Bitcoin (BTC).
A reason your fees maybe high is because the bitcoin wallet you are using isn’t optimized for sending a low fee. You can fix this in two ways:
Use a Segwit wallet
Just by using a Segwit wallet you can save up to 38% on fees.
If your wallet receive address starts with a "3" or "bc1" prefix, it's a Segwit wallet. If your address starts with a "1" then it's a legacy wallet which has a higher fee.
Decrease TxOut Fragmentation
As you keep receiving payments, your wallet will have high number of transaction outputs. When you spend money, this will result in an extremely high fee. To rectify this, you can do the following:
Send your complete wallet balance to one address within your wallet at 10 satoshi/byte during the weekend when fees are lower. This will consolidate your entire Bitcoin wallet balance to just one address.
**Important: Do not set your network fee lower than 10 satoshi/bytes otherwise you risk your transaction getting stuck in an "unconfirmed" status which can last up to 2 weeks.
This will reduce your txout number and your subsequent transaction will have a substantially lower fee.
To know your wallet type/fragmentation you can use an interesting tool from Blockonomics called TxFee Score
You can try Blockonomics TxFee score here
Due to network congestion many bitcoin users are paying a high transaction fee. This can be mitigated by choosing the correct wallet and using techniques to optimize wallet structure/fragmentation.
Keep in mind, if you are placing multiple orders throughout the day these fees can add up substantially. To minimize these fees we highly suggest planning ahead. If you know you will be ordering multiple products throughout the day, instead of purchasing them separately, combine them all into one order. This way you will only have to pay the BTC Network fee for one order instead of multiple orders.
In other words, avoid placing a bunch of individual small orders throughout the day. Combine the products you would like into one large order to greatly reduce the BTC Network Fees.
If you have any questions or need further assistance feel free to contact us.
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