Transaction fees are a very common topic in the cryptocurrency industry. Digital transactions are designed to be cheaper compared to bank wires. In the case of Litecoin, a new $62 million transaction was settled for just $0.50.
Low Litecoin Transaction Fees
Over the past few years, there has been plenty of Bitcoin-related scrutiny. Most of the concerns have to do with the network’s transaction fees. Today, the average fee for sending BTC is just under $0.37 – a far cry from late December 2017’s $25 – $55 average fees.
In the case of Litecoin, fees have almost always remained low – even for very large transactions. Recently, one user transferred $62 million worth of Litecoin for just $0.50 in fees. With a bank wire, fees can be as high as $45, if not more, because of the vast amount of money being moved around. This makes cryptocurrencies a cheap and acceptable option for global money transfers in this digital age.
The transaction itself is part of moving the funds to a multisignature account. Wallet security is critical in the cryptocurrency industry. This “upgrade’ confirms the funds’ owner wants to keep the money safe at all times. With such low transaction fees, there is no reason not to explore additionally secure options. Despite having numerous transaction inputs, the total cost did not exceed $0.45. A very strong sign of how efficient Litecoin can be when moving vast amounts of money over the network.
Cheaper Transactions are Possible
This news comes at an interesting time as several weeks ago a Bitcoin transaction worth $194m was broadcasted for $0.10. This makes Bitcoin more efficient than Litecoin in this regard. Every transaction on this level only represents a snapshot of the actual transaction fees. When timed correctly, money can be moved at nearly no extra cost.
The war for cheaper transaction fees is still ongoing. Overall costs have declined for all currencies bar Bitcoin Cash in recent weeks. That is a bit surprising, as Bitcoin Cash is often touted as the “better” Bitcoin. Its larger block sizes and faster transaction times have their own merit. However, fees have risen to $0.0285 in recent days. That is cheaper than Bitcoin but more expensive than Ethereum, Litecoin, and XRP.
Bitcoin developers still have their work cut out for them. The average transaction fee for Bitcoin still sits at $0.36. That is far too high compared to the other top cryptocurrencies. This is a steep decline from transaction fees of $1.30 in September 2018, though As the Lightning Network becomes more commonplace, these fees are expected to drop even further. Ethereum is also slated to undergo a scaling fork in 2019.