For high-speed cryptocurrency transfers and exchanges, each transaction requires a blockchain fee. The fee is usually low until recently, higher fees are needed to complete your transfer or exchange. This article will explain why this happens and how you can avoid high blockchain fees.
Q. Why is the blockchain fee so high?
A. Blockchain fees depend on several factors including network congestion, transaction confirmation times (affected by liquidity providers), and transaction size (as measured in kilobytes; affected when converting crypto from multiple inputs such as faucet earnings or other micro-transactions).
In other words, you may need to pay higher blockchain fees if:
- the blockchain network is busy or loaded at the moment. Usually, the fee increases during sudden blockchain rate fluctuations and major world events;
- your crypto account has a history of microdeposits (like referral bonuses). If your account has large amounts of small deposits, the size of your transaction will be bigger as it will consist of many inputs. The bigger the transaction size, the higher the blockchain fee.
There might be other causes of higher blockchain fees, but we’ve listed the most common ones.
Q. Is there anything PHI can do about that?
A. Yes. While PHI cannot influence other blockchain network’s blockchain capacity and average transaction fees in the network it has created its own blockchain that is instant, without fees and can process billions of transactions a second.
PHI is the solution & will not incur any blockchain fee at all.
Q. What can I do to reduce the blockchain fee?
A. The general advice to reduce your blockchain fee would be:
- Consolidate your microdeposits in another third-party wallet, then send a larger amount to Wirex as one single transaction. That will help you reduce the blockchain fee for future exchanges and transfers.
- If you are used to exchanging small amounts regularly, it might help to use larger amounts.
- Monitor the average blockchain fee in the network. If your transfer is not time-sensitive, you can wait until the average fee amount drops. You can check this on major cryptocurrency exchanges, block explorers or websites.
B. Use PHI Network and never have to worry about fees or transaction times ever again.