<p>The workaround is either to use something like the Lightning Network or to choose a fee that is small and wait for a much longer time.</p>
<p>The transaction fee is effectively a bid in an auction of space in a Bitcoin block.</p>
<p>By using some system layered over the Bitcoin network you can potentially avoid the auction for many transactions.</p>
<hr />
<p>For example see <a href="https://blog.liquid.net/six-differences-between-liquid-and-lightning/" rel="nofollow noreferrer">Liquid Vs Lightning</a></p>
<blockquote>
<p>Layer-2 protocols expand the range of options available to Bitcoin users. They enable Bitcoin to scale and bring benefits that include lower transaction costs, improved speed, and increased anonymity.</p>
<p>This article compares two different, but complementary, layer-2 payment solutions for Bitcoin: the Lightning Network and the Liquid Network.</p>
</blockquote>
<p>Also <a href="https://en.m.wikipedia.org/wiki/Lightning_Network" rel="nofollow noreferrer">Wikipedia - Lightning Network</a></p>

CC BY-SA 4.0
2022-05-27T11:04:00.650Z
"The transaction fee is effectively a bid in an auction of space in a Bitcoin block." Ahhh i am a noob. Thanks for the analogy of an auction. Just a few moments ago, it was just 0.00005BTC! I am interested in the "system layered over the Bitcoin network" you are speaking of but i have no idea what this mean. Coudl you please elaborate?
user71207
CC BY-SA 4.0
2022-05-27T13:14:55.907Z
See addendum to answer
RedGrittyBrick
CC BY-SA 4.0
2022-05-27T09:51:51.057Z
2022-05-27T13:14:35.053Z
2022-05-27T13:14:35.053Z
RedGrittyBrick
<p>I wanted to transfer BTC from coinbase to Celcius for the APY, but it costs me 0.0003 BTC just to transfer this money. That's like $5.</p>
<p>What is the <strong>workaround</strong> for this? How can I transfer money with small fees in the cents?</p>

CC BY-SA 4.0
2022-05-27T13:48:04.893Z
Please note that while there are transaction fees inherent to the Bitcoin network, a service that holds your bitcoin can charge whatever they want for transferring it. Some services only charge the necessary minimum to cover transaction fees, but others charge a very high fixed transfer fee (a round amount like 0.0003 BTC suggests the latter).
Vojtěch Strnad
CC BY-SA 4.0
2022-05-27T21:15:45.197Z
If you stop using custodial services, you'll have full control over the transaction fees. But when using such services, you are stuck paying whatever fee that service decides to charge you.
chytrik
<wallet><money-transfer>
What is the workaround for high transaction fees
user71207
# What is the workaround for high transaction fees

(Asked by: username_0 on 2022-05-27)

I wanted to transfer BTC from coinbase to Celcius for the APY, but it costs me 0.0003 BTC just to transfer this money. That's like $5.

What is the **workaround** for this? How can I transfer money with small fees in the cents?

**Tags:** wallet, money-transfer

> **Comments:**
> **username_1**: Please note that while there are transaction fees inherent to the Bitcoin network, a service that holds your bitcoin can charge whatever they want for transferring it. Some services only charge the necessary minimum to cover transaction fees, but others charge a very high fixed transfer fee (a round amount like 0.0003 BTC suggests the latter).  
> **username_2**: If you stop using custodial services, you'll have full control over the transaction fees. But when using such services, you are stuck paying whatever fee that service decides to charge you.  

---

## 1 answers

### Answer by username_3 on 2022-05-27. Score: 2 | Accepted answer

The workaround is either to use something like the Lightning Network or to choose a fee that is small and wait for a much longer time.

The transaction fee is effectively a bid in an auction of space in a Bitcoin block.

By using some system layered over the Bitcoin network you can potentially avoid the auction for many transactions.

---

For example see [Liquid Vs Lightning](https://blog.liquid.net/six-differences-between-liquid-and-lightning/)

> Layer-2 protocols expand the range of options available to Bitcoin users. They enable Bitcoin to scale and bring benefits that include lower transaction costs, improved speed, and increased anonymity.
>
> This article compares two different, but complementary, layer-2 payment solutions for Bitcoin: the Lightning Network and the Liquid Network.

Also [Wikipedia - Lightning Network](https://en.m.wikipedia.org/wiki/Lightning_Network)

> **Comments:**
> **username_0**: "The transaction fee is effectively a bid in an auction of space in a Bitcoin block." Ahhh i am a noob. Thanks for the analogy of an auction. Just a few moments ago, it was just 0.00005BTC! I am interested in the "system layered over the Bitcoin network" you are speaking of but i have no idea what this mean. Coudl you please elaborate?  
> **username_3**: See addendum to answer  

---

