Understanding Bitcoin Transaction Fees
When you send bitcoin out of your HardBlock account (on the Send BTC page), you are creating an on chain Bitcoin transaction.
Transacting on the Bitcoin network requires paying a fee to the miners who secure the Bitcoin network.
HardBlock charges a market rate fee for Bitcoin transactions; we do not make a profit on this fee, our aim is only to recover costs.
Keep reading for a more technical explanation:
Bitcoin fees are determined by two components:
- The fee rate (measured in Satoshis per Virtual Byte or Sat/vB)
- The size of the transaction, measured in virtual bytes.
We use the Medium Priority fee from mempool.space to determine the fee rate.
The size of a transaction varies due to several factors including the bitcoin address type and how many inputs are required. For simplicity, we charge a fixed 200 vBytes per transaction.
So you can calculate your fee by multiplying 200 by the Medium Priority fee rate from mempool.space
Eg If the Medium Priority fee on mempool.space is currently 1 Sat/vB, then our fee will be:
1 X 200 = 200 Satoshis (or 0.00000200 bitcoin)
The value of this fee in Australian dollars will vary based on the price of bitcoin. The Australian dollar fee is displayed in brackets next to the transaction fee.