Bitcoin fees

How transaction fees are calculated in the Bitcoin Chrome application?

In Bitcoin protocol, the sender of a transaction offers a fee to the miners, to award them for their work. So in your Bitcoin wallet, a fee rate needs to be set for each sending transaction. These fees are not charged by Ledger company, they are the standard fees required by Bitcoin protocol for each transaction.

In Ledger Bitcoin Chrome application, you can select between 3 levels of fees. These fees are dynamically estimated depending on the amount and the number of outputs needed to send this amount.

FEES LEVELS

  • high fees will roughly correspond to a validation within 1 block (on average 10mn)
  • standard fees will roughly correspond to a validation within 3 blocks (on average30m)
  • low fees will roughly correspond to a validation within 6 blocks (on average 60mn) 
  • custom fees: you can set them to the rate you need to

FEES AMOUNTS

Fees amounts are dynamically calculated, depending on each specific transaction. To find out how much it will cost, you can check it in your Chrome application by "faking" sending transaction: when you fill in the amount, the popup automatically calculates the fees and the total spent, and you can estimate the 3 types of fees by clicking on each fees level in the scroll menu.

SPECIAL TRANSACTIONS

If your transaction consists of a considerable number of inputs - when you want to send multiple small payments for example - your fees will be higher than for a standard transaction.

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