Knowledgebase
What are miner (transaction) fees?
A miner fee occurs every time there is a transaction on the blockchain. These fees pay for the computing power it takes for a transaction to be verified on a cryptocurrency network. Miner fees are given to the miner, or computer, that performs the work to verify the next block of transactions added to the blockchain. Miner fees do not go to CryptoPay.
How is the miner fee calculated?
The cost of a miner fee varies depending on two conditions:
- How many transactions need to be verified.
- How much network capacity is available.
Each cryptocurrency that uses its blockchain network has a different miner fee rate. For instance, Bitcoin, Litecoin, XRP & Bitcoin Cash each have different rates for miner fees. Miner fee rates for these coins are measured and paid in their respective currency.
How do I send miner fees?
Most wallets include a miner fee in all outgoing transactions. To ensure your wallet includes a correct miner fee, change your settings to include a dynamically-calculated fee. That will help ensure your transaction arrives on time, even when the network is busy.
Note: some bitcoin wallets/exchanges won't send a miner fee when they transfer funds. Instead, they will deduct the miner fee from your outbound transaction amount.