You can choose the amount of network fees to include when you create a transaction. The amount of fees affects the processing speed of the transaction.
The use of network fees
- The security of a blockchain network generally depends on the amount of work done by miners.
- The miner that proposes the next block of transactions to the network, has to provide proof of the amount of work done to create the block.
- If the transactions are valid and the proof of work is sufficient, the miner may collect the fees offered in the included transactions, as a reward for the work done.
Choose your network fees
When sending crypto assets, the network fees you offer determine your priority in the queue of pending transactions. Miners will prioritize transactions that offer high fees. Choose high fees if you require fast confirmation or lower fees if you can wait a while to save on fees.
For your convenience, Ledger Live dynamically estimates three levels of fees or allows custom fees for advanced users:
- High: the transaction will roughly be included in the next block (about 10 min for Bitcoin)
- Standard: the transaction will roughly be included within 3 blocks (about 30 min for Bitcoin)
- Low: the transaction will roughly be included within 6 blocks (about 60 min for Bitcoin)
Ethereum network fees
For Ethereum and Ethereum-based cryptocurrencies, the network fees are set by the gas price and the gas limit. Gas is a unit of cost for computing things on the Ethereum blockchain. The more things you need to compute, for example, the more complex the smart contract is, the more computing power you require.
You decide on two things: how much you're willing to pay per unit of gas, the gas price, and how much gas you're willing to spend on a transaction, the gas limit. Your maximum transaction fee is equal to gas price x gas limit. Once the gas limit is reached, you won't spend more.