In our latest Learn 101 livestream session, crypto experts shared insights on the shifting dynamics of the stablecoin ecosystem.

 are making a comeback, but this time, the competition is heating up. While 

 continues to dominate the market, a new wave of 

 is emerging, each with its own proposition. From institutional-backed tokens to 

, the race is on to determine which stablecoin will take the lead. What sets these newcomers apart — and could any of them realistically challenge USDT’s throne?

, we tackle the big question: Newcomers vs. USDT: Who Will Win?

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Apr 24, 2025, were two distinguished guests: Paz Gonzalez, trader and founder of 

magazine, and Jip Molenaar, full-time trader and co-founder of Tribe Capital. Under the moderation of Sabrina Chua, Crypto Evangelist and Senior Content Strategist at Bybit, this episode takes a deep dive into the shifting dynamics of the stablecoin ecosystem.

Why the world is suddenly crazy about stablecoins

Stablecoins are once again making headlines — but what’s driving this renewed momentum? Several key developments have pushed stablecoins into the mainstream conversation, including Donald Trump’s recent proposal for a 

. According to Paz Gonzalez, these announcements signal a broader shift tied to the weakening influence of the US dollar. In times like these, stablecoins could gain mass adoption, giving governments a way to reassert monetary control through a digital proxy.

Jip Molenaar agrees with Gonzalez, adding that Bitcoin is unlikely to become the world’s primary currency, despite what many once believed. Instead, Molenaar sees Bitcoin’s future role as that of a store of value — 

 — while stablecoins will take on the role of everyday money, used for payments, bill settlements and daily transactions. 

, Molenaar argues, has helped bring digital assets into the political mainstream, making the concept of crypto usage more palatable to the general public than ever before.

Molenaar also shares his personal experience transitioning from euros to USDT, a process he describes as challenging and significant. Living in Europe, switching to a US dollar–pegged stablecoin wasn’t easy — and that’s precisely why he believes most users won’t readily jump to new alternatives. For many, USDT and 

Paz sees Fidelity’s entry into stablecoins as a bullish signal for the industry. As a well-established and trusted financial institution, Fidelity’s involvement could sway skeptics who have traditionally avoided crypto. Its participation brings credibility — and potentially, a new wave of adoption.

He also emphasizes that the legitimacy of any currency, fiat or crypto, depends upon being backed by a clear source of value. Historically, 

. For stablecoins to earn that trust, the same principle applies — they must be transparently backed. Today, more investors recognize that leading stablecoins are supported by reserves, and are subject to increasing regulatory oversight.

However, despite this progress, Molenaar remains cautious. He warns that another event like the 

 is still possible if stablecoins aren’t properly backed and transparently managed. Without clear support mechanisms, he believes trust will erode — and widespread adoption will stall.

USDT currently holds the largest market share among all stablecoins and is the most actively traded. Molenaar attributes this dominance to the convenience and wide acceptance of USDT across trading platforms. He points out that the infrastructure for USDT is already deeply entrenched in the crypto ecosystem, making it far easier to execute trades and move funds. Because of this strong foundation, he believes it will be extremely difficult for any competing stablecoin to unseat USDT.

Gonzalez agrees: while she personally holds some USDC, she says that when people ask her to send a stablecoin, it’s almost always USDT. Even though USDC has made efforts to challenge USDT’s dominance, Gonzalez doesn’t see that happening anytime soon — if ever. She also underscores the fact that stablecoins like USDT aren't meant to be investments in the way Bitcoin or altcoins are. Instead, they serve more practical purposes, facilitating transactions and providing stable on-chain alternatives to fiat.

Molenaar adds that older generations, particularly baby boomers, tend to wait until new markets are validated by trusted institutions before getting involved. With firms like Fidelity now backing crypto through 

 (ETFs) and exploring stablecoin adoption, that validation is underway. Because Fidelity has integrated USDT into its ecosystem, Molenaar believes that conservative investors will naturally gravitate toward it over less familiar alternatives.

Gonzalez also shares her approach to risk management. Rather than going all-in on one asset, she diversifies and experiments cautiously — allocating small amounts to new opportunities. 

, for example, is one method she uses to generate passive income while testing out new protocols or tokens.

When it comes to adoption, Gonzalez sees real-world use cases driving interest in stablecoins. She mentions the new Wyoming stablecoin, which offers local taxpayers a slight reduction on their annual tax bills. While its benefits may currently apply to a small group, she believes this kind of practical utility is crucial. To achieve broader adoption, stablecoins — including smaller, emerging ones — need meaningful use cases tied to local economies. 

Still, for global accessibility and widespread usage, she maintains that a well-established option such as USDT is essential.

Stablecoins and trading — what really matters to traders

Molenaar is all-in on USDT, choosing to avoid the risks that come with lesser-known stablecoins. For him, USDT offers the highest liquidity and the lowest risk, due to its widespread adoption. While he's open to switching if a new, dominant stablecoin emerges, he’s not willing to gamble on smaller or less established options at this time.

Gonzalez adds an important perspective: stablecoins don’t just enable transactions — they also reflect the health and movement of the broader crypto market. Since stablecoins support liquidity within cryptocurrency networks, their flows can signal shifts in underlying asset trends. Traders are beginning to pay more attention to this relationship.

While most stablecoins are backed by USD, some stablecoin creators are now exploring alternative pegs, such as gold. But for Gonzalez, the backing isn't the main concern: usability is. She prioritizes the ease with which a stablecoin can be used for trading. In her view, investors today care more about functionality and integration with platforms than the specific assets backing the coin. 

Molenaar agrees, adding that ease of use often comes down to habit — knowing the ins and outs of how to trade with a particular coin saves time and effort. He also points out that staking stablecoins typically yields higher returns than do traditional bank savings accounts. That’s one reason he keeps minimal funds in banks — in addition to his distrust of the traditional banking system. He prefers to let his funds work for him through stablecoin staking.

Gonzalez also sticks with USDT because of its simplicity and reliability. She takes a cautious, thoughtful approach to her finances, due to her awareness of how hard she works to earn her money. When trading with USDT, she invests time in researching opportunities. Therefore, she believes that having a deep understanding of stablecoins is crucial in order to make smart financial decisions.

Both Molenaar and Gonzalez highlight the importance of using a trusted platform when holding and trading stablecoins. Molenaar uses Bybit because he feels confident his funds are secure there, and Gonzalez echoes this sentiment — rather than spreading her assets across multiple exchanges, she sticks with Bybit for its reliability and trustworthiness.

This episode of Learn 101 offers a thought-provoking look at the battle between emerging stablecoins and the reigning stablecoin leader, USDT. While newer stablecoins may bring niche advantages and localized utility, USDT’s deep liquidity, global reach and entrenched usage continue to give it a clear edge. For now, USDT remains the go-to choice. But as the ecosystem continues to evolve, the race is far from over.

Intermediate

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Learn Live ICYMI: Can the upcoming stablecoins beat USDT?

Bybit Megadrop is a token launch platform that lets users earn free airdrops by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

The crypto world never sleeps — and neither do opportunities to earn. One of the most exciting ways to get in early on promising projects is through token launches, whereby new cryptocurrencies are introduced to the market. Traditionally, early participation comes with barriers: you might need to stake, trade heavily or rely on luck in oversubscribed launchpads.

Bybit Megadrop changes the game by offering a more rewarding and accessible way to earn free tokens before they hit the market — all while growing your savings.

In this article, we’ll explain what Bybit Megadrop is, how it works, the benefits of joining, how to participate and whether it’s the right fit for your crypto strategy.

 is a token launch platform that lets users earn free 

 by subscribing to Fixed-Term Bybit Savings plans and completing simple tasks.

This new platform integrates Bybit Earn with early-stage 

 projects, giving users exclusive access to rewards before tokens go live on the Bybit Spot market. Think of it as a smarter, more educational and risk-free way to “airdrop farm” — but with real structure and substance.

Bybit Megadrop combines savings, learning and rewards into a unified experience. Here's how the flow works.

1. Subscribe to a Fixed-Term Bybit Savings plan

To participate, users must first subscribe to a Fixed-Term Bybit Savings plan using eligible tokens specified on the event page. These tokens could include MNT, USDT, USDC or BBSOL. This isn't just a gateway to Megadrop — it's also a way to grow your holdings. While your funds are locked for a fixed period, you earn interest through Bybit Earn.

This subscription acts as your entry ticket to Megadrop.

Once you’ve subscribed, you’re entitled to a portion of the airdrop rewards from the featured token’s project. These airdrops are typically distributed before the token is publicly listed on Bybit, giving you early exposure and the potential for upside if the token gains traction post-listing.

The amount of airdrop you receive depends upon your subscription amount, the total amount subscribed by all participants and whether you complete additional side tasks.

Please note that you will need to claim your airdrop rewards manually once the event ends.

3. Complete side tasks for bonus airdrops

To boost your airdrop share, you can complete optional side tasks. These tasks are simple, and are meant to educate users about the project and keep them engaged on the Bybit platform. Examples include:

Completing more tasks will grant you more points, which essentially results in a larger share of the token airdrop pool.

Bybit Megadrop isn’t just another airdrop campaign — it’s a win-win experience for users looking to maximize value with minimal risk.

The best thing about Bybit Megadrop is that when you subscribe to a Fixed-Term Bybit Savings plan, you don’t just earn the plan's regular APR — you also get free airdrop tokens. It's passive income layered with passive rewards.

Taking part in Bybit Megadrop will enable you to obtain tokens before they hit the Spot market, which could offer potential upside if the token rallies post-listing.

The barrier to entry is low, and there’s no need to buy or stake new tokens. You simply use what you already have in savings, and get rewarded on top of your fixed return — with no strings attached.

Looking to upsize your earnings? Simply complete more side tasks to earn more points. This way, you’ll be able to increase your chance of getting more tokens airdropped to your account.

Now that you have a better understanding of what Bybit Megadrop is, let’s explore how you can get started. If you don’t already have a Bybit account, you’ll need to create one. You can also check out our 

: Log in to your Bybit account and hover your cursor over the 

Select the event you would like to participate in. You will then need to subscribe to a Fixed-Term Savings plan on Bybit Earn to accumulate points. The eligible plans will be listed under the corresponding project on the Megadrop page. 

You may also complete tasks with point multipliers to earn points faster.

Once the event ends, the airdrop you receive will be based on your share of points earned in each pool.

Bybit Megadrop is designed for all types of crypto users, from beginners to veterans, and offers a compelling, low-risk way to access new token launches.

If you're someone who’s already using Bybit Earn, then Bybit Megadrop is a natural next step. It enhances the value of your fixed-term savings by layering on free token airdrops from promising web3 projects. You get to earn both APR and tokens, without having to take on additional investment risk.

Even if you’re new to Bybit, Megadrop makes participating in token launches easier and more rewarding. There’s no need to buy new or volatile assets — just deposit what you already have into a Fixed-Term Savings plan. That’s it — and you’re now eligible for airdrops.

For users who enjoy completing tasks or learning about new projects, the optional side missions are a fun way to earn additional tokens while becoming more familiar with the web3 ecosystem. If you're a retail user looking to stretch your capital, these tasks give you a chance to unlock a much larger share of rewards.

In short, if you're looking for a safe, flexible and engaging way to access new tokens early (without spending more or risking your funds), then you’ll absolutely want to consider joining Bybit Megadrop.

Bybit Megadrop combines the best of both worlds: steady earnings from savings and exciting token rewards from new projects. It’s a win for long-term holders, risk-averse users and web3 explorers alike.

Ready to try it? Subscribe, complete a few tasks and claim your share of the next big token — before anyone else!

Beginner

Bybit Megadrop.png

Bybit Megadrop: A smarter way to earn airdrops from new tokens

Tezos’ Rio upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). 

The S&P 500 futures rose after news of US-China trade talks, rebounding from Tuesday’s 0.77% decline as investors await the Fed’s rate decision and Powell’s guidance. Gold climbed above $3,400, buoyed by a weaker US dollar and risk-off sentiment, and is technically bullish with momentum targeting a retest of the $3,500 record high ahead of the Fed’s policy decision. The Coindesk Indices, which tracks the broader crypto market, rose 1.64%, with Bitcoin up 0.69% and Ether down 1.87%, in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is KAITO, which surged 39.2% after Kaito AI announced $71M in distributed rewards and unveiled upcoming products.

Kaito (KAITO), founded in 2022, is a $1,099/month AI-powered crypto search engine that aggregates data from web3 sources like Twitter, Discord, and forums, using advanced AI to deliver context-rich, sentiment-filtered insights. Kaito AI has 

 over $71M in rewards to users within 5 months of launching Yaps, excluding the upcoming $KAITO airdrop, with more products like Kaito Earn, Connect v2, and Capital Launchpad on the way.

Check out the latest prices, charts, and data of 

 upgrade enhances staking flexibility, speeds up operations 3x, and allocates 10% rewards to boost L2 adoption via the Data Availability Layer (DAL). It reduces staking cycle times from 3 days to 1, tightens baker inactivity rules for better network resili`ence, and strengthens Tezos’ position for L2 scalability and user experience improvements.

Yesterday, BTC spot ETFs saw total outflows of $122.4M, with $89.9M from GBTC and $32.5M from non-GBTC funds.

, a decentralized bandwidth marketplace, launched its node for users to earn points and qualify for a future airdrop by sharing unused internet. Users can run a free node, earn 1 point every 10 minutes, and boost earnings via quests and referral codes.

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Tezos Rio upgrade boosts staking speed and L2 incentives with improved network resilience

In this article, we’ll look into Bybit Pay, how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a next-generation payment solution that enables users to send and receive crypto or fiat with just a few taps via QR code or internal transfer. Whether you're settling bills, splitting payments with friends or running a global business, Bybit Pay simplifies cross-border transactions within a secure and intuitive environment.

In this article, we’ll walk you through Bybit Pay, show you how it works and provide you with a step-by-step guide to sending and receiving payments on Bybit Pay.

 is a powerful payment service designed to connect your crypto wallet to real-world financial needs. Whether you're sending money to friends or making payments to merchants, Bybit Pay allows seamless transactions conducted in both crypto and fiat — all from within the Bybit platform.

Its mission is to bridge the gap between digital assets and traditional finance by enabling users to spend their crypto effortlessly, just like they do with cash. With support for currencies like BTC, ETH and USDT (and even fiat such as BRL), Bybit Pay turns your crypto into a practical tool for everyday payments.

Bybit Pay makes it easier than ever to use your crypto. Whether you're paying online, transferring funds to a friend or scanning a QR code in-store, Bybit Pay supports seamless payments in both crypto and fiat funds.

Bybit Pay simplifies spending both locally and globally.

Bybit Pay operates through two main methods: QR code payments and internal transfers. Users can scan a QR code to pay merchants or friends, or send funds directly using a phone number, email or Bybit UID. It supports both crypto and fiat, with seamless access via the Bybit app or website.

: While the Bybit Card functions like a debit card for in-store purchases, Bybit Pay enables direct wallet-to-wallet transfers and merchant payments, without any need for physical hardware. It’s faster, flexible and perfect for global digital transactions.

How to send crypto and fiat with Bybit Pay

Bybit Pay makes it easy to send crypto or fiat to other users or merchants. You can pay by scanning a QR code, or via internal transfer using a phone number, email or UID.

2. Choose your payment method, and enter the recipient’s email, phone number or Bybit UID.

Enter the amount you wish to send. Tap on the 

 to convert from fiat to crypto, if needed. Add a note (optional), avoiding special characters.

5. Review the details, and confirm your payment after completing two-factor authentication (2FA).

Once your funds are sent, your payment history is viewable at the bottom of the Bybit Pay screen or by tapping on the 

Bybit Pay makes sending crypto as easy as sending a message.

How to receive crypto and fiat on Bybit Pay

Receiving payments on Bybit Pay is simple and flexible. Users can receive crypto or fiat via either internal transfer or QR code, depending upon the sender’s preference.

The sender can use any of these details to transfer funds directly from their Bybit Pay interface.

Bybit Pay makes receiving crypto fast, flexible and borderless. The following is a step-by-step guide for requesting a payment using a personalized QR code — right from the Bybit app.

. This opens your personalized payment interface.

 to enter a fiat amount, and the amount will automatically convert to crypto.

: Your QR code updates in real time in order to reflect the specified details. Simply show it on-screen or use the 

: After the sender has completed the transfer, go to 

 to confirm receipt and track incoming funds.

Bybit Pay bridges crypto and traditional finance, offering seamless, secure and instant payments — all from one place. Whether you're sending or receiving crypto, or spending it globally, it’s never been easier to do. 

 today to experience secure, borderless crypto and fiat payments — right from your app or browser.

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How to send and receive payment using Bybit Pay

Crypto

Blockchain

Bitcoin

Blockchain transaction fees are implemented to expedite a transaction validation process and to keep the network fluid. But why do the fees fluctuate? Find out more.

Blockchain-Transaction-Fees.jpg

In 1998, Chinese engineer Wei Dai first introduced the concept of “

.” Unlike conventional currency, digital currency only exists online. Users can exchange cryptocurrency online after purchasing tokens using “real” — i.e., traditional or fiat — currency. Cryptocurrency eliminates the need for a central controlling authority, such as a financial institution or government office, and instead creates a fast, easy and effective way for people around the world to exchange money.

About a decade after the idea of cryptocurrency was first described, an innovator using the pseudonym “Satoshi Nakamoto” 

 the concept behind Bitcoin. Today, Bitcoin (or BTC) is one of the most popular forms of cryptocurrency. While Bitcoin has eliminated the need for a central authority, it hasn’t removed the costs associated with the technology underpinning cryptocurrencies. Knowing how this technology works can help you better understand transaction fees — and how to minimize your costs when using cryptocurrencies.

All verified Bitcoin transactions are stored via 

, a type of database which stores data electronically. The primary difference is that databases use tables to structure their data, while blockchains store data in blocks. When a block is filled, it’s added, time-stamped and “chained” to the previous one. This creates a record with readily accessible data and an immutable timeline.

Like databases, blockchains require multiple computers to manage and store data. However, databases use servers, which tend to be owned by a specific person or entity, whereas blockchains store data on multiple computers owned by numerous people or entities.

Bitcoin’s network includes thousands of computers called 

, all working together to verify transactions, fill blocks and keep the system functioning.

For a blockchain to function at its best, it must be secure, decentralized and scalable. The blockchain trilemma, a concept introduced by a programmer (and Ethereum founder) 

, refers to the idea that blockchain projects struggle to meet all three ideals. 

Blockchain developers are using the concept of the trilemma to further refine networks and create tools to achieve optimal functionality.

Blockchain is designed to be democratic and immutable. The blockchain security is maintained through coding, as well as consensus algorithms which dictate the number of network nodes required to confirm transactions before finalization. And since the blockchain is made up of a series of blocks that record the data in hash functions with timestamps, it has proven its resilience against data tampering and hacks. 

One of the jobs of central institutions is to prevent

 and similar issues. However, they’re vulnerable to 

 and other security issues. The idea of a decentralized blockchain network is deciphered as an environment where no one needs to know anyone since each node is passed on with the same information on a distributed ledger. 

Decentralized systems such as Bitcoin are essentially invulnerable to these issues, and consensus algorithms or mechanisms provide further system security while preventing double-spending and enforcing peer equality. Shall anyone attempt to alter or corrupt the ledger, the majority of network participants need to reach a consensus to do so.

During periods of heavy use, traffic jams can occur, slowing transaction processing and driving up costs for users. A scalable blockchain is essential to maintaining a competitive edge with centralized networks.

To overcome and address the blockchain trilemma, some developers recommend making direct modifications to the network — layer-1 solutions, such as Ethereum. Others have suggested developing secondary networks, or 

, designed to run alongside the blockchain, such as 

 on Bitcoin or Litecoin. It’s important to note that blockchain technology is still in its infancy, and as it evolves, so will potential solutions to the blockchain trilemma.

In Bitcoin’s early days, miners worked quickly to validate transactions. As the digital currency has exploded in popularity, transactions have become more numerous and complicated. The 

 was initiated to speed Bitcoin transaction validation.

Fees are tied to the size of the transaction and input age. In other words, a transaction that comprises more bytes that take up more block data will have higher transaction fees. Additional fees can speed the transaction through the system, essentially placing it in a priority queue. In other words, you can pay more to have transactions validated faster.

Collected fees go to the miners, who validate and record the Bitcoin transactions and help keep the system fluid and functional by:

In other words, Bitcoin transaction fees protect and preserve the integrity of the Bitcoin network.

Conceptually, Bitcoin transaction fees represent the speed with which a user wants their transaction validated on the blockchain. Although the decentralized nature of Bitcoin makes it easy for anyone to 

— which means verifying and recording transactions to form a block and are joined by a chain. However, the process of mining Bitcoin, or BTC, is both complex and expensive. Mining rigs are expensive and often times consume massive amounts of electricity, while the block subsidy and transaction fees help offset these costs and incentivize miners whenever a new block has been validated. 

Miners are granted transaction fees and block subsidies as a “block reward” whenever they successfully added a block to the blockchain. The block subsidy is fixed with each Bitcoin mining and was reduced by half (

) which will happen every four years or every 210,000 blocks. Looking back at 2009 a mined Bitcoin would earn you 50 BTC and in 2012, but as the years passes by, the rewards were halved, and the latest halving in 2020 set the rewards at 6.25 BTC.

 to fall, thus increases the computation power and energy required to mine new blocks. However, the rising transaction fees help incentivize miners to maintain network security and sanity. The transaction fees are determined based on a few factors:

The last point is under the user’s control. If you need your Bitcoin transaction to be processed urgently, you can opt to pay a higher fee to prioritize it. If your transaction is less urgent, you can opt for a lower fee. In this case, the transaction will remain in the memory pool (or mempool) until the traffic slows.

The mempool can be thought of as a queue. When you initiate a transaction, it goes to the mempool. Transactions which are waiting remain in the mempool until a miner confirms and adds them to the block. When the mempool fills, miners choose Bitcoin transactions with higher fees first.

This system can keep transactions moving more smoothly, but it can also lead to a kind of bidding war. Many people using cryptocurrencies are willing to pay a premium to ensure their transactions are completed first. However, this tactic can backfire, especially during periods of heavy use. Some users end up overpaying fees, which forces other miners to also increase their fees.

The biggest names in cryptocurrency are Bitcoin (BTC) and Ether (ETH) and understanding how fees are calculated can ensure you’re paying a fair amount to complete your transaction, without getting caught up in a bidding war or unnecessarily stagnating in the mempool.

To calculate bitcoin fees, you have a couple of options. With some wallets, you can automate the process, which allows you to choose how quickly you want your transaction completed and pay accordingly.

 and then multiply based on the size of your transaction. Bitcoins are divided into Satoshis, which are one hundred-millionth (or 0.00000001) BTC. If your transaction is 225 bytes and you choose the rate of 100 Satoshis per byte, then you can expect to pay about 22,500 Satoshis in fees, since 100 x 225 = 22,500. That currently translates to just over $14, considering ​​

Until 2021, everything on Ethereum’s network was based on “gas.” Gas is the unit linked to the amount of computing power necessary to complete a specific transaction. Aptly named, gas refers to the energy used to keep the Ethereum network moving.

Under this payment system, everything has been associated with gas. A simple addition problem might require just 5 gas units, while completing an actual transaction may have a cost of 20,000. To determine the transaction fee, a user would need to know the gas price, which is measured in 

, or the equivalent of 0.000000001 (one-billionth) ETH.

To calculate, you’ll need to multiply the gas cost by the gas price. For example, you may have a transaction that will cost 20,000 gas units, and the price of gas is 100 

. Your total cost for that transaction will be two million gwei, because 20,000 x 100 = 2 million. That translates to just slightly above $7, assuming 

,” which referred to your spending limit, or how much gas you wanted to use for a specific transaction. Complex transactions required more work, so their gas limits would necessarily be higher than for simpler transactions.

This system proved to be cumbersome, however, and many users were underpaying, which could lead to the rejection of their transaction or the necessity of overpaying. (Think of it as putting too many stamps on an envelope you want to mail, instead of risking having the letter returned for insufficient postage.) The 

 changed the way users pay for transactions. ETH users instead would pay a base fee for specific transactions. Part of each collected fee is “burned,” which removes coins from circulation, and the rest goes to the miners. ETH users also have an option to “tip” miners, which can speed the processing and recording of their transactions.

Transaction fees are a necessary cost of performing financial transactions in the 21st century, and cryptocurrency transactions are no exception. Both Bitcoin and Ethereum link the cost of the transaction with its size, and users can pay more to speed the process. The average bitcoin transaction fee fluctuates from day to day, depending on the amount of traffic and other factors. The same applies to the Ethereum network.

 are between $2 and $5, which translates to between 3,700 and 9,170 Satoshi. The 

 ranges from $2 to $7, or 0.00056 to 0.002 ETH.

BTC and ETH networks are flourishing, with myriad transactions being completed and verified every day. On the Bitcoin network, 

 are completed daily. Ethereum, on the other hand, completes over 

Completing your transactions on a day when traffic is light can lower your transaction rate without forcing you to compromise on verification speed.

Hefty Bitcoin transaction fees are attractive to miners, but might not be as popular with users. The fee structure can be such that some users are paying the equivalent of their transaction amount in fees, particularly when it comes to smaller transactions.

Transaction fees aren’t the only issue dogging Bitcoin. Scalability is also proving to be something of an Achilles’ heel. The Bitcoin protocol clearly defines the block size and generation, which restricts Bitcoin to about seven 

, or TPS. This has led to Bitcoin branching off into additional forks, such as Bitcoin Gold (BTG) and 

 (BCH). Ethereum, on the other hand, has larger blockchains and can process about 20 TPS and the 

 is paying the way for a more scalable solution.

To change the Bitcoin protocol, its users must all agree on and choose a specific software. Lightning Network offers an alternative that’s designed as a Layer 2 payment protocol, which means it‘s layered on top of the blockchain. With Lightning Network, you can complete numerous transactions before closing the payment channel and settling the final transaction with the blockchain.

The Lightning Network is an off-chain solution that sits on top of a blockchain not exclusively on Bitcoin’s network primarily helps to process blockchain payments quickly and securely without potentially lengthy block confirmation times. It even allows users to complete cross-chain atomic swaps instantly without relying on third parties. 

One of the key highlights of the Lightning Network includes its ability to allow for small payments, even less than a Satoshi. The process is more private, allowing for multiple individual transactions to occur without being broadcast via the blockchain. As its name suggests, the Lightning Network is fast too, with virtually no limits on TPS. Settlement times are equally fast, with the average transaction settling in about a minute or less. Fees are lower as well.

For those in search of privacy, speed and affordability, Lightning Network offers an excellent alternative.

A consensus mechanism or algorithm refers to a specific protocol designed to ensure that networks of computers can work together efficiently while maintaining security. The algorithm is often used to ensure the crypto network can function effectively and prevent certain types of system attacks.

If Bitcoin’s primary weakness is its scalability, a more scalable consensus mechanism may help lower costs. Currently, Bitcoin runs on a 

, which requires each node to solve complex mathematical problems to validate a transaction. The first to complete the problem can add the next block to the chain. The block is then verified, with the data entered into the blockchain.

 is both more scalable and sustainable than PoW. PoS links mining power to ownership stake. Miners don’t need to expend energy solving mathematical problems but are instead limited to mining a specific number of transactions linked to their ownership stake. A miner with a one percent ownership stake would then be able to mine one percent of the blocks.

PoS systems are also less vulnerable to a certain type of economic attack. A miner would have to own more than half of the digital coins on a network to launch a system attack, which would be disadvantageous to their interests.

Ultimately, a PoS system is more scalable, energy-efficient and secure than PoW systems.

Much as a traffic jam causes congestion, a greater number of transactions waiting on a network results in slower movement and higher fees. Ergo, fees tend to increase during times of peak use.

If your Bitcoin transaction isn’t urgent, you can “camp out” and wait for an opening, much as you might choose to leave a little later in the day to avoid rush-hour traffic. The blockchain tends to have predictable peaks and valleys, due to businesses completing larger transactions. Waiting until the weekend to complete yours could mean less traffic, faster clearing transactions and smaller fees. That’s one of the advantages of markets that never close.

While custom fees are possible, still, miners prioritize and process transactions based on several factors, including the size of the fee. Your larger transactions might take a little longer to complete, but they will be added to the blockchain, usually when the traffic slows.

Higher or lower fees can significantly cut your profits and affect your capital gains and losses. While these fees are a necessary part of transacting in a digital asset, you can take steps to lower your overall costs and reduce the risk of overpaying, whether that means opting for an alternative system for smaller transactions, such as Lightning Network, or waiting until the ideal time to process your transactions. Researching your options and finding the best one for your needs can help you save on both the prices of your transactions and the cost of doing business.

Blockchain Transaction Fees: Why Do They Matter?

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