How Do I Calculate Bitcoin Transaction Fee?

If you’re new in the crypto world and don’t know how you can calculate fee for your Bitcoin transactions with greatest accuracy, you’re at the right place. Calculating bitcoin transaction fee is as simple as riding a bike. All you need is to use the right fee calculator, which you can easily find on the internet. A simple Google search is enough to get you to the websites dedicated to bitcoin fee estimation. If you want to get your transaction confirmed faster, you’re likely to pay more than normal. Having the knowledge of the following terms may be of help to you in understanding bitcoin estimation and how bitcoin transactions work. 

Calculate Bitcoin Transaction Fee

Blockchain

Blockchain is a public ledger where all bitcoin transactions are registered. Since it’s a public record, anyone can view the transactions. The blockchain has a record of all the bitcoin transactions ever made. It’s run by a global network of computers, with each computer having a copy of the blockchain. In simple words, blockchain is a type of diary that holds transactional data to ensure transparency, security and decentralization. You can also imagine it as the records stored in the form of blocks which aren’t controlled by any single authority.

Block

A blockchain is a chain of blocks, with each block having the details of the most recent bitcoin transactions. These transactions are confirmed every ten minutes through a procedure called crypto mining. So, it’s the blocks that connect all the bitcoin transactions together and form a blockchain. The transactions once verified can’t be changed, and this is what makes Bitcoin stand out. 

Cryptography

Cryptography is the art or process of generating and deciphering codes. Bitcoin employs a cryptography technology, and therefore it’s called a cryptocurrency. Cryptography plays a vital role in making bitcoin transaction completely anonymous and secure. The transactional information is sent in an encrypted form which can be decoded only at the receiver end so that no can manipulate it in the middle. Cryptography is used in bitcoin addresses and blockchain hash functions.