Bitcoin Cash (BCH) Transactions: Fees, Speed, Limits

In 2017, Bitcoin Cash split from Bitcoin, created to solve scalability problems and minimize transaction costs, leading to increased user adoption.

This guide will clarify how Bitcoin Cash transactions function. We’ll explore essential topics such as fees, transaction speed, and how to monitor the status of your transactions.

Bitcoin Cash Transactions Basics

A Bitcoin Cash transaction is a BCH transfer conducted between two wallets. All transactions contain inputs that represent the fund's origin and outputs that indicate where the funds are being sent. The Bitcoin Cash blockchain tracks every transaction, providing transparency.

A BCH transaction proceeds through a series of stages once it is initiated:

• Broadcasting: The transaction is submitted to the network.
• Verification: Miners review the transaction and ensure the sender has the required balance.
• Inclusion in a Block: The transaction is included in a block and added to the blockchain.

For their work, miners get paid by fees. In Bitcoin Cash, transaction fees are charged to users sending and receiving funds. Unlike some coins with variable commissions, BCH maintains low costs for daily use, but it can change due to the factors we’ll outline later.

Once a block is integrated into the blockchain, the transaction is officially confirmed. A transaction is typically deemed secure once it has garnered a specified number of confirmations, indicating that various miners have validated it and added it to their blocks. So, each block inclusion in the blockchain enhances the transaction confirmation count, reflecting improved security and acceptance rates. For BCH, a transaction is considered complete after six confirmations, which can take from 10 to 20 minutes.

Bitcoin Cash Transaction Fees

As noted earlier, various factors can influence the fees you incur. A Bitcoin Cash transaction fee generally ranges from $0.005 to $0.03, determined by network activity and transaction size. To ensure your transaction is handled swiftly, reviewing the current fee rates is vital.

Bitcoin Cash fees can be relatively high due to network demand and the sum you’re sending. When many users send transactions at once, miners prioritize higher-fee transactions, raising costs for those needing quick processing. Also, larger transactions lead to higher fees because miners base their charges on data volume. However, even during peak times, BCH fees are typically much lower than Bitcoin ones.

How Long Does It Take For Bitcoin Cash To Transfer?

With its larger block size and technical advancements in the BCH protocol, Bitcoin Cash provides a significant improvement in transaction speed over Bitcoin. Bitcoin Cash transactions are typically confirmed within 10 to 30 minutes, but this timeframe can still fluctuate. A BCH transaction can take longer than expected due to network congestion, low-priority fees, or wallet-related problems.

The transaction speed also plays a big role. Bitcoin Cash can process 200 transactions per second. It significantly exceeds Bitcoin's typical processing capacity of 3 to 7 transactions per second. So, BCH can manage a higher number of transactions, positioning it as a more effective option for everyday spending and microtransactions.

How To Check BCH Transactions?

If you want to monitor your transaction, it’s very easy to accomplish. To check the Bitcoin Cash transaction status, consider using a specific blockchain explorer. It’s a tool that allows you to view all transactions on the BCH blockchain. Some popular options you can try include:

• Blockchair
• Blockchain.com
• BCT.com

To examine your transaction, simply enter your Transaction ID (TXID), also called hash, or wallet address into the blockchain explorer's search field. You’ll see all related information, including its status, fees, and confirmations.

Why Is Your BCH Transaction Pending?

If your Bitcoin Cash transaction appears as “Pending”, it usually indicates that it hasn't yet gained the required confirmations from the network. Here are the factors that contribute to pending status:

• Confirmations: Transactions require the miner “approvals” and remain pending until enough confirmations are reached.
• Fees: A low fee could cause longer wait times for your transaction to be processed by miners.
• Blockchain Processing: The BCH blockchain processes transactions in limited-capacity blocks, and high traffic can result in longer wait times.

After acquiring enough confirmations for the transaction, it will transition from “Pending” to “Completed” status, and then the funds could be credited to the recipient’s wallet.

Ultimately, Bitcoin Cash is a strong alternative to Bitcoin for routine transactions, featuring lower fees and quicker confirmation times. By learning the essentials of BCH transactions, you can improve your decision-making and maximize your BCH usage.

Hopefully, our guide was helpful. Send in your experiences and questions below!