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What is a mining fee?


Mining fees are small amounts of a digital coin given to incentivize miners (and their operators) to confirm cryptocurrency transactions. Miners are the specialized computers that confirm and secure transactions on the network.  Mining fees pay miners for the service they provide. These fees do not go to NetCents.  Fees will vary depending on the type of cryptocurrency and how many transactions are taking place at once. 

What do Mining fees do?

Miners confirm and secure transactions by adding blocks to the blockchain. A block is a group of transactions. The blockchain is a shared public record of all transactions. Miners must add transactions to the blockchain so the transaction becomes final. No one is able to reverse a transaction after miners add it to the blockchain.

Miners use the miner fees attached to transactions to decide which transactions to confirm first. A sufficient miner fee makes it more likely that your transaction will confirm in a short period of time. If you use a low miner fee (or no fee at all), your transaction may take days or even weeks to confirm. The blockchain network may even reject your transaction altogether and return the funds to your wallet.

How do I send Miner Fees?

Most true eWallets include a miner fee in all outgoing transactions. To make sure your wallet includes a correct miner fee, change your settings to include a dynamically-calculated fee. That will help make sure your transaction arrives on time, even when the blockchain network is busy.

Note: some exchanges won't send a miner fee when they transfer funds. Instead, they will deduct the miner fee cost from your outbound transaction.

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