Definition of network fees
Network fees represent the cost of including a transaction in the history of a blockchain network. These fees (also known as “mining fees” or “transaction fees”) are a kind of reward offered to miners for confirming the validity of a transfer within an estimated period of time.
Is it mandatory to pay network fees?
Although in most cases the cryptocurrency protocol does not usually force you to pay a network fee, doing so has become essential due to its economic function. Assigning a fee makes it easier for miners to calculate with what priority to include transactions in the blockchain, in addition to discouraging spam attacks, thus preventing malicious actors from saturating it.
What percentage of my transfer do I have to pay as a fee?
As a general rule, network fees are not calculated based on percentages, so network fees are completely independent of the amount sent. Instead, in most cases, factors such as the size that the transaction occupies in the blockchain (weight generally measured in “bytes”), the supply and demand of the blockchain space at the moment, among others, influence it.
How to know what rate is reasonable to pay?
In most cases, cryptocurrency-related platforms have systems that calculate the most optimal rates for their users based on analysis of network activity. These calculations seek to maintain a balance between cost and speed to avoid long waits or unnecessarily expensive fees. That is the case of Ccoins, whose estimated network fees can be consulted before making a withdrawal in the “send” section of the user’s wallets.
Additionally, on the internet you can find portals that offer statistics on a variety of data including what rates could be reasonable based on urgency, congestion, among other factors.
Yes, in each withdrawal transaction to wallets outside of Ccoins, our system calculates the network fee and this fee is deducted from the balance in the portfolio.
No, any transfer or shipment between Ccoins wallets is exempt from the network fee, since in this case it would be taken as an internal transfer that would not go through the blockchain.
All shipments made to external addresses charge a network fee regardless of the currency being sent, of course the fee may vary depending on the digital asset being sent.