How Bitcoin network fees work

Every Bitcoin transaction pays a network fee. This applies to Bitcoin you send to your JAFX wallet and to Bitcoin you withdraw from it.

In the JAFX client portal, your Bitcoin Wallet balance is shown in bitcoin (₿, with 8 decimals). On the deposit and withdrawal forms you enter the amount in BTC, and the form shows "Equivalent to $Y", its value in US dollars.

Why there is a fee

A transaction is complete only when a miner adds it to a block on the blockchain. Miners earn a block reward of new Bitcoin, plus the fees of the transactions in the block. Miners usually include the best-paying transactions first.

What decides the fee

The fee does not depend on how much Bitcoin you send. Sending $10 can cost the same fee as sending $10,000. Two things set the fee:

• How busy the network is. Transactions wait in a queue called the mempool until a miner puts them in a block. Blocks have limited space. When many people are sending Bitcoin, senders offer higher fees to get in. When the network is quiet, a lower fee is enough.
• The transaction's data size. Fees are priced by block space, measured in bytes, not in Bitcoin. A larger transaction needs a higher total fee. One that combines many small amounts is an example. Your wallet calculates the size for you.

Priority and regular fees

Most wallets let you choose a fee level:

• Priority fee: a higher fee. It is often confirmed within about an hour.
• Regular fee: a lower fee. It often takes somewhat longer than an hour.

These times are estimates, not guarantees. If the network gets busier after you send, confirmation can take longer.

Who chooses the fee

• Deposits: you choose the fee in your own wallet or exchange. JAFX does not set it.
• Withdrawals: JAFX sends your Bitcoin at the current market fee rate. JAFX covers this network fee in full, so it is not taken from your withdrawal.

Any deposit, withdrawal or currency conversion charge that applies is shown to you before you confirm.

Why a low fee slows confirmation

When the network is busy, a low-fee transaction waits in the mempool while miners fill blocks with higher-paying ones. This can last several blocks or longer. The transaction has not failed. Once a miner includes it, it gets its first confirmation, and one more with each new block.

If a Bitcoin withdrawal is still unconfirmed after 24 hours, JAFX automatically re-sends it twice a day with a slightly higher fee to help it confirm.

Check a Bitcoin transaction

1. Sign in to the client portal at app.jafx.com.
2. Go to Transaction History and open the transaction.
3. Check the number of network confirmations. Use View Confirmations or the blockchain explorer link to follow its progress.

If your withdrawal still shows no confirmations after 24 hours, email support@jafx.com with your transaction ID.

For how to withdraw, limits and timeframes, see Withdrawals: how to withdraw, limits, fees and timeframes.

We are available 24/7 via live chat or email (support@jafx.com).