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Rachel Welch

25 November 2022 85 Read Bitcoin

Explaining Bitcoin Transaction Fees

Whether you're new to the crypto world or just want to make the most of your investment, understanding how Bitcoin transaction fees work is a great place to start. The fee is paid to miners, which then adds your transaction to the public ledger known as the blockchain. It is a process that is similar to sending traditional wire transfers.The miner's fee, also known as the transaction fee, is a small amount that goes into the transaction. This fee is used to verify the integrity of a transaction and is paid to miners. The fee is also used to reward participants in the cryptocurrency network.

Transaction fees vary, depending on the number of people sending and receiving transactions. Generally, higher demand means higher fees. These fees are also affected by network congestion, which is often caused by an influx of new transactions.