Miners Fee

1293 views January 2, 2018 ray 16

The current miner’s fee is 0.0008 bitcoin.

The miners fee is a bitcoin network transaction fee that goes to incentivise the miners for confirming transactions. This is not a fee Paxful charges you.

The bitcoin network is experiencing serious scaling issues and the bitcoin miners’ fees are rising. We’re doing everything we can to get to an agreement with BitGo to get this lowered for our users. As the bitcoin price has risen the miners’ fee is also higher. There isn’t anything we can do about that now as it is a core bitcoin network issue. You can read more about the current situation with miners’ fees here

The high miners fees are not just an issue at Paxful. The average miners fee on the network currently is 0.0019 BTC, compared to this our fee is relatively low. We have also already adopted SegWit which means that in the near future bitcoin transactions will be much faster and cheaper for our users. This is a gradual process and also depends on whether the addresses sent to have adopted SegWit.

We understand how the fee can be frustrating when sending out a small amount. There are issues with scalability with bitcoin currently but the above mentioned SegWit and later on with the lightning network slow and expensive transactions should be an issue of the past.

Why is my account balance negative?

If you send 1 bitcoin to an outside address then they get 1 bitcoin and we deduct the bitcoin network miner fee from your remaining balance. If you only had 1 bitcoin as your balance then it shows it as a zero balance but in our system, it will actually be in the negative from the bitcoin network miner fee. When you deposit coins again it will go towards the negative balance. This way if you send out 1 bitcoin the receiving party always gets 1 bitcoin. When you send coins within the Paxful network, to another user, there is no mining fee.

One more example:

A user X is buying coins and gets 0.1 BTC from his trade. 0.1 BTC was deposited to his paxful wallet. After that, the user decided to send all bitcoins out of Paxful to his external wallet or pay for services. For every external transaction, bitcoin network takes 0.0008 BTC fee. User received exactly 0.1 BTC in his external wallet and Paxful pays 0.0008 btc fee for him, at this moment wallet balance become negative for the amount of fee -0.0008 btc. When the user logs into his account next time and buys another 0.1 BTC, he will receive total amount minus fee (-0.0008 + 0.1 = 0.0992 btc). 

Please keep in mind this simple rule when you are sending bitcoins out.


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