For newcomers, the cryptocurrency market can initially seem bewildering and even intimidating. However, there's no need to be overly concerned. By delving into the world of digital assets and blockchain, many previously mysterious concepts quickly become clear.
In this in-depth guide, we'll explore how long a Bitcoin transaction takes, how much you might spend on transaction fees, and how soon BTC will reach the recipient.
Understanding Bitcoin transactions
Bitcoin (BTC) is the very first and most well-known cryptocurrency. It was created by an anonymous developer using the pseudonym Satoshi Nakamoto on 3 January 2009. You can find more information about this leading digital asset in our special review.
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One can buy, store, and sell bitcoins, as they are considered a currency. This process is known as a crypto transaction. Simply put, a Bitcoin transaction is a record in the blockchain, the cryptocurrency's network. It confirms the transfer of assets from one wallet address to another.
Each such record consists of the following information:
- Info about the sender;
- Info about the recipient;
- The transfer amount;
- The transaction fee amount.
In general, the cryptocurrency transfer process involves several stages. Let's examine them in more detail.
What happens when you send Bitcoin?
So, you've decided to send someone a few BTC. Your crypto transaction will need to travel a bit before the coins arrive in the recipient's digital wallet. Here are the main stages:
- Transaction creation. This step occurs in the sender's crypto wallet: the sender specifies the recipient's address, the amount to send, and selects an acceptable fee. Then, they sign the transaction with their private key, which confirms the right to send the funds.
- Transaction broadcast to the network. Once all necessary parameters are set and the transaction is signed, it is sent to the blockchain. In our case, this is the Bitcoin network. There, the transaction is verified and confirmed.
- Transaction added to the block. Here, Bitcoin miners step in to start the transaction verification process. They check each new transaction, gather them into blocks, and then add these blocks to the blockchain. If you’re interested in becoming a miner, you can explore our material on the best Bitcoin mining apps.
- Transaction confirmation. Finally, after block confirmation, the transaction finds its place in the blockchain. It is then considered complete and irreversible.
Key factors influencing transaction time
While the process we outlined above never changes, the transaction speed can vary from case to case. Let's explore why.
- Network congestion. If the network is experiencing a surge of users, each wanting to conduct transactions, processing them takes longer than usual.
- Block time. This term refers to the approximate average time the cryptocurrency network takes to create a new block. This indicator directly affects blockchain confirmation speed, measured in transactions per second (TPS).
- Transaction size. The larger the amount of bitcoin a user wants to transfer at once, the heavier the transaction. Generally, such operations require more time for blockchain confirmation.
- Transaction fee size. The higher the fee, the shorter the confirmation time. It’s all down to miners, who are more likely to process transactions with higher fees as it brings them greater rewards.
- Chosen wallet. Some models of crypto wallets process transactions slower. Each model has unique characteristics and performs best with certain types of digital assets. More information about what crypto wallets are and their types can be found in our material.
Average Bitcoin transaction times
Now, let’s take another practical step and examine what average confirmation times you can expect under different conditions.
What to expect under normal conditions
Here, we must revisit the term block time, which we discussed earlier. For the Bitcoin network, this indicator is approximately 10 minutes.
Therefore, the average time for a Bitcoin transaction is around 10 minutes. However, it's worth noting that the verification process can take up to one hour, and this is also normal. On average, one transaction requires six confirmations from different miners to be fully confirmed and verified.
How network congestion affects times
However, any cryptocurrency network can experience congestion, as we began discussing earlier. This phenomenon occurs due to a surge of users. As a result, the blockchain struggles to keep up and fails to process all incoming transactions promptly.
Network congestion mainly occurs during mass buying or selling of bitcoins. Consequently, transaction verification can take hours or even days because miners lack the hash rate and computing power to verify all new transactions promptly.
To avoid being caught off guard by such an unpleasant situation, it is advisable to assess the current network speed before sending BTC. You can do this using tools like Bitcoin Mempool. This is a place where all initiated but not yet completed transactions are held; it’s a sort of "waiting room." Here, you can see how long, on average, it currently takes to process and complete Bitcoin transactions.
Mempool website
How to speed up Bitcoin transactions
But what if network congestion has already occurred, and you're in a situation where you can't or don't want to wait? Let's explore what you can do to expedite your cryptocurrency transaction.
Choosing the right transaction fee
One of the most obvious and straightforward methods is to increase the transaction fee. As mentioned earlier, this makes miners more likely to process your transaction since they will receive a higher reward for their work.
You can set the fee manually in the relevant section of your wallet or use dynamic fee adjustment. Dynamic fees automatically set the most appropriate fee based on several factors:
- Network congestion;
- Transaction size;
- Urgency of the transfer.
If you still have questions, read our special guide. It covers everything you need to know about configuring digital wallets and working with them.
Using SegWit and the Lightning Network
For more advanced members of the crypto community, there are additional methods to speed up Bitcoin transactions. In fact, there are two such methods:
1. SegWit (Segregated Witness)
This solution reduces the size of a transaction, making them faster and cheaper. SegWit allows miners to include more transactions in a single block.
It is available as a Bitcoin protocol update. However, not all wallets and crypto exchanges support SegWit. Therefore, before using this solution, ensure that your chosen platform or wallet is compatible with it.
2. Lightning Network
The Lightning Network is a second-layer (L2) network for the Bitcoin network. Its primary goal, similar to SegWit, is to make transactions faster and cheaper.
Transactions conducted via the Lightning Network are not recorded on the blockchain, which makes them much quicker and cheaper than regular Bitcoin transactions. This solution is ideal for frequent transactions or transfers of small amounts.
If you're interested in L2 network technology, check out our other materials. Comprehensive reviews of how the Shibarium and Arbitrum second-layer blockchains work are already waiting for you in our blog.
FAQs on Bitcoin transactions
Why can Bitcoin transactions be delayed?
There are several common reasons why Bitcoin transactions might experience delays in processing and confirmation. Here are the main ones:
- High network congestion. An influx of users wanting to make transactions increases processing times.
- Large transaction size. Bigger transactions are heavier and thus take more time to process.
- Low transaction fee. If the fee is too low, miners might postpone processing the transaction in favour of more lucrative ones.
- Technical issues. These can occur anywhere—from mining pools to wallets, or the cryptocurrency network as a whole. No one is immune to these problems.
Is it possible to cancel a slow Bitcoin transaction?
Once a Bitcoin transaction is added to a block, it is impossible to cancel it. Due to the nature of blockchain technology, all crypto transactions are irreversible and immutable.
The future of Bitcoin transactions
Technological improvements and their impact
A whole community of talented developers, programmers, and other innovators is working to make Bitcoin more user-friendly. Technologies like SegWit and the Lightning Network have already proven effective. It’s likely that we will see even more new solutions in the future to further speed up and reduce the cost of BTC transactions.
Conclusion: optimising your Bitcoin transaction experience
In the meantime, you can take steps to protect yourself by following a few simple recommendations we discussed in this guide:
- Optimise your transaction fee;
- Monitor network congestion;
- Utilise modern technologies.
And stay connected—don’t forget to follow our itez blog to stay updated with the latest news and technological innovations in the crypto industry.
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This article is not investment advice or a recommendation to purchase any specific product or service. The financial transactions mentioned in the article are not a guide to action. It’s not intended to constitute a comprehensive statement of all possible risks. You should independently conduct an analysis on the basis of which it will be possible to draw conclusions and make decisions about making any operations with cryptocurrency.
