Understanding and Managing BTC Network Fees: A Simple Guide

-:Topics covered:-
1. Why Network Fees Matter for Bitcoin Transactions

2. How to Adjust Fees for Faster Transactions

3. The Risks and Rewards of Customizing Your BTC Fee

A mandatory requirement for executing transactions on the Bitcoin Network is the payment of fees. These sat/byte fees are preset by the application to prioritize transactions. Understanding how to manage these fees is key to ensuring smooth transactions and avoiding unnecessary delays.

Be Aware: The Importance of Fees

Amending the fees carries a risk of rendering your transaction stagnant, causing potential delays in processing. It's important to plan for delays and carefully adjust fees, keeping in mind that all levied fees are miner-specific. Once initiated, a pending transaction cannot be revoked. Always consider these factors before modifying your transaction's fee.

Setting Up a Transaction

1. Open Your BTC Wallet: Start by tapping 'Send' in your wallet.
2. Enter Recipient Address and Amount: Input the recipient's address and the amount you wish to send.
3. Tap 'Continue': The next screen will show a transaction summary, including the calculated fee for the transaction.

Navigating to Advanced Settings

1. Access Advanced Settings: Tap the gear icon in the top-right corner to open the advanced settings menu.
2. Modify the Fee: Tap on the Network Fee field to manually adjust the fee.

Note: Reducing the fee too much could lead to your transaction being delayed or stuck in the pending state.

Amending Fees: Know What You’re Changing

When adjusting the network fee, you’re altering how much you’re willing to pay for transaction prioritization.

1. Adjust the Fee: Enter a specific fee value in sat/byte. Lowering the fee could lead to delays, while higher fees might speed up the transaction.
2. Be Cautious: Always proceed with caution when modifying fees. The app will notify you if you try to reduce the fee too much.

Saving Changes and Completing Your Transaction

1. Confirm Your Changes: After adjusting the fee, tap ‘Save’ to apply your changes.
2. Transaction Update: The new fee will be reflected, but be mindful that lower fees could cause potential transaction issues. Check your transaction's status at mempool.space for confirmation.

Note: If you receive an error alert, it may indicate a low balance, considered "UTXO dust."

Final Thoughts

Customizing your Bitcoin transaction fees can be useful for prioritizing or lowering costs, but it’s important to understand the risks. Always verify your transaction before finalizing and ensure you're using the latest version of Trust Wallet for the most up-to-date features. Download here: trustwallet.com/download.