In today's digital currency trading market, Bitcoin (BTC) has always attracted much attention as a leader. With the booming cryptocurrency market, understanding how to calculate BTC transaction fees has become a must-have knowledge for digital currency holders. This article will explore in depth the calculation method of BTC transaction fees and take you to unveil this seemingly mysterious veil.

1. The basic concept of BTC transaction fees

BTC transaction fees refer to the fees paid to miners to confirm transactions and include them in blocks when transactions are made on the Bitcoin network. In the BTC network, miners maintain network security and operation by packaging transactions and solving mathematical problems, and transaction fees are rewards that motivate miners to participate in this process.

The calculation of Bitcoin transaction fees involves multiple factors, including the size of the transaction, network congestion, and the fees users are willing to pay. Generally speaking, transaction fees will rise as network congestion increases, because miners will prioritize packaging transactions that pay higher handling fees.

2. Calculation method of BTC transaction fees

1. Basic rate: BTC transaction fees are usually calculated per byte (byte), not the size of the transaction amount. Generally speaking, the transaction fee rate is determined based on the number of bytes required for the transaction, and larger transactions will require higher fees.

2. Miner Fee: Miner Fee refers to the fee that users are willing to pay to miners to ensure that transactions can be packaged and confirmed quickly. Users can choose the appropriate miner fee rate according to their needs and network conditions, which are usually divided into three types: fast, medium and cheap.

3. Network Congestion: Network congestion is one of the important factors affecting BTC transaction fees. When the transaction volume on the Bitcoin network increases, miners will choose to prioritize transactions with higher handling fees, which may cause low-fee transactions to be delayed or even abandoned.

4. Transaction Priority: In addition to paying miner fees, users can also speed up transaction confirmation by increasing transaction priority. Increasing transaction priority usually requires paying higher fees, but it ensures that transactions are processed faster on the network.

3. Example Analysis

To better understand the calculation method of BTC transaction fees, we use a real case to illustrate.

Suppose Xiao Ming wants to transfer 1 BTC to a friend, and he hopes that the transaction can be confirmed as soon as possible. According to the current network situation, Xiao Ming chooses to pay a miner fee of 50 sats per byte (sat/byte) and increases the priority of the transaction. After a period of time, Xiao Ming's transaction was packaged and successfully confirmed, and his friend received 1 BTC.

In this case, Xiao Ming successfully accelerated the transaction confirmation and achieved fast transfer by paying appropriate miner fees and increasing transaction priority.

IV. Conclusion

Through the introduction of this article, we have explored in detail how to calculate the important digital currency concept of BTC transaction fees. Understanding the calculation method of BTC transaction fees is crucial for digital currency holders, which can help them better manage transaction costs and speed up transaction confirmation.

In future digital currency transactions, with the continuous development of technology and changes in the market, the calculation method of BTC transaction fees may be adjusted, so it is crucial to continue to pay attention to and learn relevant knowledge. I hope this article can inspire you and let you have a deeper understanding of the mystery of BTC transaction fees.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

According to market data, the circulating market value of BTC is 284.7 billion US dollars, and the 24-hour trading volume is 18.43 billion US dollars. As of press time, the price of BTC is 15,410.47 US dollars. From these data, we can see that there are still many investors in the market who invest in BTC. Generally speaking, BTC transactions require a certain fee, and this fee has become the fee that newcomers in the currency circle want to know most. So, how to calculate the BTC transaction fee? Let the editor of the currency circle learn with you how to calculate the BTC transaction fee.

 How to calculate the BTC transaction fee?

The Bitcoin network rules have a built-in transaction fee structure, which depends on the (standard) client recommended by the system. Let's take Bitcoin Core as an example. When transferring money, you need to go through the following steps:

1\. Prepare the Bitcoin you want to send

The client is responsible for collecting the Bitcoin balance in your wallet (Bitcoin-Qt) to prepare for payment, because every Bitcoin you receive is stored in your wallet until you spend it.

For example, A transferred 2 bitcoins to B; C transferred 3 bitcoins to B, then the two transfer amounts will lie separately in B's wallet until they are spent. (Note: the two transfers will not be "automatically merged" into 5 BTC).

Then, after a while, different amounts of bitcoins will accumulate in the wallet, so it is said that you have to consider which ones to use for payment.

The available amount is called the "input" of the transaction, and the final amount sent (including the change returned to the wallet) is called the "output". If the transaction "output" (including change) is less than 0.01BTC, a handling fee of 0.0001BTC will be charged. When "selecting coins", the algorithm will try to avoid coins with change amounts less than 0.01BTC.

2. The larger the amount and the higher the coin age (age), the higher the priority

If the amount you send is too small or your bitcoin has just been mined, then your transfer is no longer free. Each transaction is assigned a priority, which is determined by the newness of the coin, the number of bytes in the transaction, and the number of transactions. Specifically, for each input, the client will first multiply the number of bitcoins by the time these coins exist in the block (age), and then add up all the products and divide them by the size of the transaction (in bytes).

If you really have a large number of small inputs and want to transfer them out for free, you can add a large amount of bitcoins with a large age, which will increase the average priority and allow you to transfer bitcoins for free.

3. Fees per kilobyte

The fee per kilobyte is charged at the end of the transfer. The client will detect the size of the transfer (in bytes). The size generally depends on the size of the input and output. The calculation formula is as follows: 148  input amount + 34  output amount + 10. If the size of the transfer exceeds 10,000 bytes but the priority meets the free standard, you can still enjoy the free transfer, otherwise you need to pay a fee. The default fee for every 1,000 bytes is 0.0001BTC, but you can also add it in the client. Open the tab "Settings>Options>Main" to adjust the fee. If the fee you set is less than 0.0001BTC, it will be calculated as 0.0001. When this rule is applied, it will replace the rule in step 2 instead of adding it up.

 The role of Bitcoin transaction fees:

In the process of confirming Bitcoin transactions, Bitcoin miners will automatically sort the fees of traders. Transaction requests with more Bitcoin transaction fees will be processed first. Therefore, for Bitcoin users, setting a higher fee can get faster transaction confirmation.

For the entire P2P network, there are two functions for miners to charge Bitcoin transaction fees: to motivate miners' enthusiasm for work and to get more people to engage in mining.

In order to prevent small Bitcoin transactions from impacting the entire P2P network, Bitcoin miners will charge mandatory fees for small transactions. Imagine if someone sends a large number of requests for transactions of 0.000000001BTC to the entire P2P network, all transactions will be delayed or even stagnant. To prevent this from happening, miners will require fees.

Through the above introduction, I believe everyone has some understanding of the question of how to calculate the BTC transaction fee. Nowadays, there are many fake BTC trading platforms on the market, which use the low BTC transaction fees to deceive investors into investing in the trading platform. After accumulating a certain amount of funds, investors will find that the trading platform has run away, resulting in the investor's funds being defrauded. Therefore, when choosing a BTC exchange, investors must consider many aspects and not be blinded by the immediate benefits.