What are bitcoin transactions and how do they work?

Bitcoin transactions incur a small fee which is paid to the miners that confirm them. Transactions with higher fees attached to them are picked up sooner by miners (who optimize for profitability), so higher-fee transactions are more likely to be included in the next batch, or 'block,' of transactions that's added to the Bitcoin blockchain.

How much did the bitcoin transaction fee rise in 2020?

It may shock you to know that in 2020, the Bitcoin transaction fee rose by 344 percent in a single week. From November 5 to December 13, the price rose from around $2.70 per transaction to over $12. Higher Bitcoin transaction fees during Bitcoin bull runs are nothing new.

How do bitcoin miners prioritize transactions?

Miners on the Bitcoin network prioritize transactions by the fee that they receive for confirming them. Therefore, if you pay a higher fee, a miner is more likely to process your transfer which decreases the transaction time.

How long does a bitcoin transaction take?

Bitcoin transaction times vary and can take anywhere from 10 minutes to over 1 day. The two things that determine Bitcoin transaction times are the amount of network activity and the transaction fees. The average Bitcoin transaction time is currently around 1 hour.