This is a quick tip on sending Bitcoin payments in exact amounts.
Basically to send any transaction on the Bitcoin blockchain you need to pay fees. This transaction fees is paid by the sender and it goes to the miners. Now the question is should one include the fee to the amount being sent or is it going to be separate from the amount?
Technically the sender specifies how much BTC goes into a transaction. When you are spending Bitcoin from your wallet you have the option to specify every information. You specify how much money you want to spend, the transaction fees, total output value and from where to where.
So will the fee be subtracted from the total amount being sent? If so then how do I send exact amount of BTC to the recipient.
Sending exact amount of Bitcoin
Let’s say you wanted to purchase something using Bitcoin. To make a payment the merchant is requesting exactly 0.024 BTC Not more or not less. How do you send this exact amount?
First of all the total amount that you are sending (payable amount + fees) cannot be more than the available balance you have in your wallet.
Also if you are sending from your wallet you do not have to add fees to the total amount being sent.
For example if your wallet has 0.03 BTC balance and if you want to send exactly 0.024 BTC to the recipient then just enter the exact amount (i.e. 0.024 BTC) in the amount field.
The fees will be automatically deducted from your wallet balance and not from the amount you are sending.
So simply enter the exact amount the recipient should get. If you enter 0.192 BTC then this is the amount you’ll be paying to the receiver. In most wallets the fees will be deducted from the balance of your wallet and not from the sending amount.
Subtracting fee from the amount being sent
If you don’t want to pay extra for the fees then in some wallets like for example core wallet you have the option to subtract fee from amount.
If you check this then the fee will be subtracted from the total amount and not from your wallet’s balance.
Before the transaction gets broadcasted you’ll get to the preview screen where you can verify all the information.
For example here is how it works:
If you send 0.05 BTC then the receiver will get 0.05 BTC but you’ll be actually spending 0.05 + 0.0001 fees depending on the fee that you specify. This fee will be deducted from your wallet balance.
Now if you check subtract fee from amount option and send 0.05 BTC. Then the receiver address will end up getting less than 0.05 BTC since the fee is being deducted from the total amount.
Note: Fee is not a fixed value. It is something that you decide to prioritize your transaction on the network. The higher the fees the faster your transaction will get verified by the miner.
Sending exact amount from exchange
If you are processing payments directly from third party wallets or exchange services like Coinbase or Binance then it can get quite confusing to send exact amount.
These services often draw transaction fee from the base amount you are sending instead of adding it. This often results in paying less to the payment processor. In which case they will cancel your order or you’ll have to send another payment to make up the remaining amount.
Before submitting withdrawal request be sure to check how much you will get. Adjust it accordingly to the amount you want to send / receive.
Hope it explains.
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