How to Calculate Bitcoin Transaction Fee for Ethereum
By transferring assets between two Ethereum wallets, including Bitcoin, you have to pay who can eat your wallet balance. In this article, we will go into how to calculate the transaction fees related to sending or receiving bitcoin on the Ethereum network.
Understanding Bitcoin Deal Fee Mechanism
Bitcoin is a peer cryptocurrency that uses a decentralized system to facilitate transactions without the need for intermediaries such as banks. To enable quick and cheap transactions, each network node charges you to record the transaction in your public ledger (Blockchain). This fee is called “transaction fee”.
Bitcoin transaction fee calculation for ethereum
To calculate the fees associated with sending or receiving Bitcoins on the Ethereum network, you will need to follow these steps:
Step 1: Determine the sender and receiver purses
First, identify the sender and receiver wallets involved in the transaction. The sender’s wallet usually has a unique address (for example, “1A1ZPQY2KP3P4yJF9V5VYG6WGMP7FAFQ”), while the receiver’s wallet has an address such as “1ZKTCQKHTQJ”.
Step 2: Calculate the transaction fee using the formula
The transaction fee for Ethereum is determined by the minimum amount of ether (ETH) to pay to cover the cost of processing the transaction. This minimum amount is called “base fee”. In addition, there are other charges related to the transaction:
* Transaction Fee (TXFEE) : A small additional fee charged for ethereum network use for convenience.
* Gas Fee : Ethereum Network Gas Usage Costs, which measure the time required for a particular operation.
Use the following formula to calculate the total transaction fee:
TX Fee = Base Fee + Gas Fee
The basic fee is usually approximately 0.0005 ETH (for example, $ 15) per transaction.
3. Step: Convert ETH Fees for BTC Fees
Since there is a fixed number of bitcoins, the conversion of Ethereum fees to Bitcoin fees can be made using the current market price for one Bitcoin.
1
To convert ETH fees for USD : Multiply the total ETH fee with the current USD/ETH exchange rate (approximately $ 0.00016 per ETH).
- To convert the ETH fee for BTC fees : Divide the total ETH fee with the existing number of bitcoin, which is approximately 10^18 (for example, $ 15 ÷ $ 1,000,000,000).
an example
Let’s say we want to send 0.001 btc from the wallet “A” to the purse “B”.
Wallet A Address: “1A1ZPQY2KP3P4yJF9V5VYG6WGMP7FAF”
Wallet B address: “1zktcqkhtqj”
Base fee = 0.0005 eth
The gas fee can be insignificant, as the transaction may pass through several nodes, so we will ignore them in this calculation.
ETH Conversion for USD:
USD 15 ÷ USD 1,000,000,000 ≈ 0.0000015 USD for ETH
Total ETH Fee: USD 15 x 0.0000015 ≈ 0.00225 USD
ETH conversion for BTC fees:
USD 0.00225 ÷ 10^18 ≈ USD 0.000000225 BTC
The transaction fee for Ethereum is approximately $ 0.000000225 BTC.
Conclusion
By sending or receiving Bitcoins on the Ethereum network, you can calculate the transaction -related fees using a simple formula and conversion level. Keep in mind that gas fees are usually insignificant and should not be taken into account in your calculations. Understanding how the Bitcoin transaction fee works, you will become more aware of cryptocurrency transactions.
I hope this article has helped you understand how to calculate the Bitcoin transaction fee for Ethereum!