Since 2009, Bitcoin has been ruling the trading market and getting the trust of millions of people worldwide. However, we do not know the actual inventor of Bitcoin because we know the technology behind this, which is Blockchain.
Blockchain is a decentralised process that considers all kinds of transactions worldwide and does not allow any tried party to track the records. This particular process of Blockchain has made life easy for millions of people, especially those who have no bank accounts.
The addition of Bitcoin is increasing day by day despite its volatile market. We do not know the actual future of Cryptocurrency, but we know that this is going to stay for a long time in the trading market.
This is because it is based on Blockchain technology, which is incredibly fast and has many other potentials which have not been explored yet. If you want to explore the essence of Blockchain, you can try Bitcoin through BitAlpha AI official site.
Difference Between Traditional Transactions And Bitcoin Transactions
There is a huge difference between traditional transactions and Crypto transaction processes, and this difference is the main reason for so much popularity of Bitcoin. With the traditional transaction process, we know that it is centralised, and the banks will take care of our security.
On the other hand, Bitcoin transactions are maintained through a decentralised process of Blockchain technology, which is also limited. People use this process because they want to take care of their own transactions without any third-party involvement.
So, the anonymity remains intact and thus security as well.
Bitcoin transactions are very fast, and it goes smoothly without any obstacles anywhere in the world to any currency, and that just takes a minimum transaction fee and nothing else.
The only problem is the minimum space in Blockchain, and that is the main reason behind increasing the transaction fee of Bitcoin. People are getting more attracted to Bitcoin, and their involvement increases the traffic, which slows down the transaction time, and people need to put more transaction fees on the miners in order to get it to proceed.
Reducing The Bitcoin Transaction Fees
Thanks to these processes can significantly decrease the transaction fees of Bitcoin. You are patient enough to understand the process of Blockchain; on every transaction, you will have the chance to cut out the cost of these transactions.
1. Wait It Out
This is a very cool process if you have time on your hands. Many people face the problem of high transaction fees these days, and most of us get rid of the problem. But not all of us have to send the money for emergency purposes.
In such cases where you have the luxury of time, you will be able to mitigate the transaction trouble by waiting for the right time. For example, on the weekends, the transaction traffic gets low, and that might be a perfect time for you to transact at a comparatively lower cost.
2. Use Scaling Technology-Based Wallet
In this process, you will be able to avoid the traditional transaction process and consider SegWit transactions. This particular transaction process is in the marker from 2017 and deals with the transaction fees quite easily.
This is not available for all the wallets, but if you can use the particular wallets which have the facility of SegWit transactions, you will be able to reduce the transaction fees significantly.
3. Use A Lightening Network
The Bitcoin masters are well aware of their upcoming challenges, and thus they know that with the popularity of Bitcoin, traffic will be there, and that will significantly increase the transaction fees as they know the process of Blockchain.
So, the experts are using a lightning network to bypass the huge traffic on the traditional Bitcoin channel. Of course, average on-chain transactions of Bitcoin will cost you higher than this bypass process as well.
It is a prominent process for people who have long-term plans of transacting regularly through Bitcoin.
We are reaching a kind of position where Bitcoin will be our main transaction medium, and that is good news if the Blockchain also improves simultaneously. However, without the improvement of Blockchain technology regarding its storage problem, there is a big issue waiting for us with Bitcoin.
Thus feel free to use the above-mentioned steps and cut out some transaction fees while using Bitcoin.