Skip to main content

How Is the Size of a Transaction Fee Determined by a User?

A user determines the transaction fee by setting a "fee rate," which is the amount of satoshis (or equivalent smallest unit) they are willing to pay per unit of transaction size (byte or vByte). The user typically uses a wallet or exchange which suggests a competitive fee rate based on current network congestion.

A higher fee rate incentivizes miners to include the transaction sooner.

Why Do Users Still Set a ‘Max Fee’ Even with a Dynamic ‘Base Fee’?
How Does Network Congestion Affect Transaction Processing Time?
How Does a Node Decide Which Low-Fee Transactions to Drop from Its Mempool?
What Is ‘Transaction Throughput’ and How Does It Relate to Mempool Clearing Rate?