Bitcoin Miner fee FAQ
What are Bitcoin miner fees?
Bitcoin miner fees are basically transaction fees. When Bitcoin is sent from one wallet to another, a miner is required to ensure that the transaction details are correctly entered into the blockchain. This task incurs a miner’s fee which is the reward that goes to the miner.
A miner confirms that Bitcoin transactions are accurately recorded on the blockchain. Blockchain is the public ledger on which all Bitcoin transactions are recorded. The outcome of miners’ work is how blocks are formed and added to the blockchain, and the integrity of the Bitcoin network is maintained. Miners are incentivized with small amounts of Bitcoin, usually a few satoshis, for the work they do.
Note: Yellow Card charges NO fees for withdrawing your Bitcoin. The fee is the Blockchain network miner fee. The Bitcoin network requires a miner fee for all transfers.
Why is my Bitcoin miner fee so high?
Miners use fees to determine which transactions come first. The higher the miner fee attached to a transaction the higher the priority miners give the transaction. In most Bitcoin wallets, you will be able to select a priority level for your transaction - low, medium or high. This will determine how quickly your transaction is confirmed by miners.
Using low or no miner fee may leave your transaction hanging for days. If you, however, use a moderate to high miner fee, your transaction will be confirmed in a short period of time.