Which is the best suitable transaction or also called as the network fee that can be set in order to avoid high fees and yet get the confirmation of the transaction.
Can we say that 0.00000100 BTC is appropriate ?
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3 Answers
First a clarification: Anyone giving a flat fee in response to this question is not giving sufficient information. Transactions are (generally) selected by fee rate. This means that besides the flat transaction fee that was included, the weight of your transaction plays a critical role:
fee rate [sats/vB] = transaction fee [satoshis] / weight of transaction [virtual bytes]
In order to get a confirmation, you need to successfully compete with the other waiting transactions for block inclusion. Depending on your time preference, you either have to place your transaction within the top 4,000,000 weight units of the block author's mempool sorted per transaction fee rate, or be willing to wait until blockspace demand cools down a bit to drop to the fee rate that you're willing to pay.
There are a number of services that attempt at predicting appropriate fee rates for various inclusion times, e.g.:
- bitcoinfees.github.io
- whatthefee.io
- bitcoinfees.earn.com
- @corefeehelper (tweets Bitcoin Core fee estimates hourly)
There are also sites that give perspective on the mempool to facility users picking their own fee rates, e.g.:
Finally, there is a general lower limit, the minRelayTxFee (which despite the name is a fee rate), for which the default currently is 1,000 satoshis per kvB, or 1 satoshi per virtual byte. Sending a transaction below a node's minRelayTxFee will cause the node to drop it from their mempool instead of relaying it, i.e. such a transaction will generally never get to the miners, and won't get mined into a block even when blocks aren't full.
Conclusion: If you have a low time-preference, e.g. in the case of creating consolidation transactions, and blocks haven't been consistently full, sending a transaction with a fee rate of 1 satoshi/vB will pay the lowest fees which will still get you confirmed.
What is appropriate varies depending on network conditions, transaction load and, what fees other people are sending.
Bitcoin Core includes a fee estimation when sending transactions in bitcoin-qt, so that you can select a target confirmation time (n blocks) and it will suggest an appropriate fee for that target. Note that this still does not guarantee that a transaction will be confirmed in n blocks and the simple rule stands; higher transaction fees generally result in shorter confirmation times.
If you make a transaction with a fee of 0.000001, then it will probably be first confirmed when the lightning network is working and the fees fall again. There is no way that it will be confirmed in a few days.
At the moment, you could try to pay a fee of around 300 satoshis/byte to get it confirmed within < 24 hours.
This is an example transaction of one of the last blocks: https://blockchain.info/de/tx/de0da59eaf211bbd4b674135c9ae7d9a0c54972fd4f20c50608e45c43d539b87 and the fees were 400 sat/b to be in the next block.
But that's a lot more than 0.000001 Bitcoins (around 0,01$). That's 0.00076188 BTC (11.33$) fees. They are high at the moment and the poeple pay that price. If you pay 0.01$, you'll wait a long time.
