Contents
- Why do I have to pay the network fee?
- How is the network fee calculated?
- How do I adjust the network fee?
- Does Atomic Wallet charge any extra fees?
To make a transaction or a swap, you'll need to pay a network fee charged by the blockchain.
Why do I have to pay the network fee?
Before your transaction can reach its destination, someone needs to add it to the blockchain. This process is called "mining," and those who do the job are known as "miners." Miners invest their personal resources, such as computing power, into this job. Naturally, they want to earn money from it. That's why they charge you the network fee: you're paying the miner for processing your transaction.
Why do I have to pay the network fee to stake my crypto?
When you decide to stake your crypto for the first time, a dedicated staking address is created for you—a separate one for each particular coin. It still belongs to you and can be accessed with your private keys. Whenever you stake your crypto, you're making a transaction that transfers some part of your funds to this dedicated staking address. That's why you're paying the network fee: it goes to miners to process this transaction.
How is the network fee calculated?
For the most part, the fee size depends on the network's current load. The more transactions are queued to get confirmed, the higher the fee will be.
Once you click the "Send" button in your Atomic Wallet app, your transaction will first be added to the mempool, which is essentially a list of all transactions currently expecting confirmation. Miners look through the mempool and pick transactions they want to process.
Think about it this way: when making a transaction, you're the miners' client. Since any miner is always looking to increase their revenue, they'll first choose the transactions that offer the highest potential pay. When the network is overloaded and lots of transactions are queued to get completed, some people will be willing to offer higher fees to make their transactions more appealing to miners and thus speed up the confirmation process. Therefore, the average network fee will go up.
If you aren't in any rush with your transaction during such periods of high demand, simply wait until the network is less crowded. Otherwise, you'll need to either offer a better compensation or wait in the confirmation line.
How is the BTC, LTC, and DGB network fee calculated?
Apart from the network's load, the fee's size depends on the number of inputs your transaction will have.
What are inputs? Imagine you need to buy something that costs $350, and you need to pay with cash. Since a $350 bill doesn't exist, you'll use three $100 bills and one $50 bill. It will be quite easy for the cashier to count the money. If you use 35 $10 bills instead, though, things will get a bit harder.
This works the same way on the blockchain. If Bob has 0.45 BTC on his balance, this amount is likely composed of numerous smaller BTC pieces. Instead of saying he owns 0.45 BTC, it would be more accurate to say he owns 0.1 + 0.2 + 0.1 + 0.05 BTC. Therefore, if he wanted to transfer 0.15 BTC to Alice, he'd be sending her 0.1 + 0.05 BTC, as opposed to a single 0.15 BTC piece.
These 'pieces' are inputs. The more you're sending, the heavier the transaction will be.
How is the ETH network fee calculated?
The amount you're sending has no impact on the network fee size. It would be cheaper to transfer ETH than ERC-20 tokens, though.
Here is the formula:
Proposed Gas Price / 1,000,000,000 Gwei
You can either keep the default gas limit and price suggested by the wallet or adjust these to your preference.
How do I adjust the network fee for Ethereum or Bitcoin?
In the transaction sending screen, select Set fee and adjust it using the slider.
Note: Don't lower the fee too much, as it will likely result in hours or even days-long transaction confirmation.
Does Atomic Wallet charge any extra fees?
Atomic Wallet doesn't impose any extra fees on transactions.
However, we do charge additional fees on swaps: 0.5% plus our swap partners' commission. The swap estimate you see before making your trade already accounts for network and any other additional fees.
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Why do I have to pay the network fee?
The network fee is a crucial aspect of blockchain transactions, serving as compensation for miners who validate and add transactions to the blockchain. Miners invest computational power and resources, and the network fee is the incentive that encourages them to prioritize and process your transaction.
Why do I have to pay the network fee to stake my crypto?
When staking crypto, you're essentially making a transaction that involves transferring funds to a dedicated staking address. This transaction incurs a network fee as well, as it compensates miners for processing the staking transaction.
How is the network fee calculated?
The size of the network fee is primarily influenced by the current load on the network. The more transactions awaiting confirmation, the higher the fee. Miners prioritize transactions with higher potential pay, especially during peak demand. Users can choose to wait during high-demand periods or offer a higher fee for quicker confirmation.
How is the BTC, LTC, and DGB network fee calculated?
Apart from network load, the fee's size depends on the number of inputs in a transaction. Inputs are analogous to smaller denominations of a currency. The more inputs in a transaction, the heavier it becomes, influencing the network fee.
How is the ETH network fee calculated?
For Ethereum, the network fee is determined by the formula:
[ Network\ fee = Gas\ Limit \times Proposed\ Gas\ Price / 1,000,000,000\ Gwei ]
The amount being sent does not directly impact the fee size, but transferring ETH is generally cheaper than ERC-20 tokens. Users can adjust the gas limit and proposed gas price based on their preferences.
How do I adjust the network fee for Ethereum or Bitcoin?
Users can adjust the network fee in the transaction sending screen by selecting "Set fee" and using the slider. However, caution is advised against lowering the fee too much, as it may result in significantly delayed transaction confirmations.
Does Atomic Wallet charge any extra fees?
Atomic Wallet does not impose additional fees on regular transactions. However, for swaps, there is a 0.5% fee plus any commission from swap partners. The swap estimate provided before the trade already accounts for network and additional fees.
In summary, understanding network fees, their calculation methods, and the factors influencing them is crucial for navigating cryptocurrency transactions efficiently.
