What is the transaction fee?
Transaction fees are the difference between the amount of cryptocurrency sent and the amount received. In case of cryptocurrency transactions, fees define the speed with which a transaction will be validated on the blockchain. Participants of transaction processing in the blockchain are financially rewarded for the validation of the block. So, the higher the fee, the faster the transaction is verified.
How are transaction fees determined?
Transaction fees are based on the size of a transaction and on how busy the network is. If you are sending a transaction with the help of a crypto-wallet, the wallet will usually give you the option to select your commission rate. The total fee paid by your transaction will then be this rate multiplied by the size of your transaction.
When you send a cryptocurrency to blockchain.com, Blockchain doesn’t charge any fees for the transaction. However, as with all crypto transactions, you need to pay a commission to the mining network.
When you withdraw cryptocurrency from the crypto-wallet, it will automatically calculate the appropriate fee for sending the chosen cryptocurrency.
For example, the fee for sending Ether is static, which doesn't take market conditions into account (you can view the fee for sending Ether by clicking “Send” and selecting Ether as the currency), while the fees for sending Bitcoin are dynamic and calculated by your wallet after you input the amount you want to send. Dynamic fees mean that the wallet searches for the appropriate fee for your transaction taking into account current network conditions and transaction size.
However, the commission may turn out to be higher than you expected. In this case, we recommend you follow the current commission chart here.
The chart shows the average fees per transaction for the selected period (30 days, 60 days, 180 days, 1 year, 3 years, or statistic for all time) in USD equivalent.
What could be causing the increase in the size of the fees?
The increase in commission on the network may be associated with an increase in user activity itself. As customers start withdrawing and depositing more often, the load on the blockchain will inevitably increase. This can form a queue of unconfirmed transactions and cause an increase in the number of users who are ready to pay higher fees so that their transaction is processed as soon as possible.