Transaction Size! (WARNING!)

As people who have been following this blog know I have a wide range of investments in two different cloud mining groups I recently have tried to spend small fractions of my income and came across the issue of BTC transaction size and fees. To rewind a bit the cost of a transaction on the block chain is determined by size of data in the transaction NOT the amount of currency you are transferring. The things that contribute to the size of the transaction is the number of inputs and outputs on the transactions. 

If you are sending 1 BTC that is made up of 10 transactions of .1 you will spend more in transaction fees compared to sending 1 BTC that is made up of 1 transaction. Additionally if you have multiple outputs the transaction size will increase also so sending .5 BTC to 2 addresses will be more expensive than sending 1 BTC to 1 address.

This is very important to cloud mining because all of our outputs will be in small daily transactions. These transactions will increase the size of our single transaction. Do not fret I have devised multiple methods to combat this issue. 

The first and suggested is to send the money direct to a a website like freebitco.in. This website offers a bank option, 2FA, a faucet you may already use and the ability to gamble. More importantly it offers FREE weekly withdraws so you can compile all of your 'dust' into one lump and save on various transaction fees. 

The second option is to use an exchange. My trading exchange offers withdraw at a .0005 BTC fee which if you compound enough 'dust' you will save a sizeable amount of money additionally you can use this method to directly convert your currency to a fiat currency.

This is also important for Faucet users because many of the faucets have small payout rates and the transaction fee will often be a significant portion of the currency gained.