ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How To Send Bitcoins Without Paying Any Fees (Or Waiting Ages)

Updated on January 18, 2018

Bitcoin Fees and Confirmation Time

Bitcoin is really starting to prove itself as a new method for people to send and receive money or pay for things over the internet. The recent announcement by Overstock.com that they would accept the digital currency as payment on their site sent their sales - and the company's value - soaring. This will almost certainly mean that this is now likely to be followed by other major retailers following suit.

There are loads of advantages to owning Bitcoins, and to using them for receiving money and for making payments. Firstly, this new currency is deflationary rather than inflationary. What this means is that whilst each your the dollars or pounds in your pocket will buy you less and less over time, because prices go up in dollars and other fiat currencies every year, your Bitcoins will buy you more and more each year because prices go down. This is due to the scarcity principle, because fewer Bitcoins are created each month and year, and there is a fixed limit after which no more will be created, whereas dollars are issued every year based on government debt - and in massive quantities recently as well, as a result of the financial crisis. Another reason is because they are digital, so payments can be made to people in another country without expensive fees. Thirdly, it is an international currency so pricing makes more sense - a person in Europe may not have a very clear idea of a price in dollars, for example, and this may put them off, but if they use Bitcoins and the price is given in this currency it will make much more sense for them.

But there are problems with Bitcoins. One of these problems which really annoys a lot of people is the fees. Fees are charges, and are given to the (already spectacularly wealthy) 'miners' of Bitcoin whenever you send a payment. They are supposedly optional, but your payment might not be processed if you don't pay them, and even if it is it will take a very long time due to its low priority. In any case a lot of users aren't technically proficient enough to know how to prevent the fees being automatically added to any payment they send. Another annoying thing about the fees is that there is no real way to know how much they are going to be in advance. This is because it depends on the size of the transaction - not in money but in the amount of computer power it takes to process (in the amount of data the transaction contains, actually). So if you take a lot of small payments into your wallet, these are held as separate balances - if you then make a payment which needs to take coins from all these small balances it has a large data size so you will pay ridiculously large fees. Many people do not know what separate balances they have and how they will be used to make a payment, so can't know in advance what the fees will be. You can find more information about the transaction fees here.

The time it takes to process a transaction is also a problem. When you send a payment it needs to be confirmed by many different computers. This means that it often takes an hour, and sometimes a day, between sending a payment and it being available to spend in the wallet of the person you sent it to. Because retailers require a certain number of confirmations before they feel safe that the payment isn't some kind of fraud, this means that you can't buy things instantly. With digital goods that people want to pay for and access immediately this is a big problem.

Would You Prefer Not To Pay Fees?

See results

Sending Bitcoins Without Paying Transaction Fees

It is possible to get around these problems, however, using the Ripple protocol. Ripple actually have their own digital currency called XRP which they hope will be a successor to Bitcoin's trailblazing success. This currency offers instant payments with no fees and an innovative peer to peer currency exchange system built in. But for the moment, whilst most people are using Bitcoin and there are not so many merchants accepting payment in XRP, they are also proving the value of their system by enabling people to send Bitcoins to anyone with no fees (actually you can be charged a flat transaction fee, but this is hundredths of a cent in USD for a transaction of any size, which can theoretically be raised to a maximum of 1% if the system is under DDOS attack) or excessive delays using their Bitcoin bridge technology. You can even send money to a Bitcoin address using another currency, and the system will find the best possible exchange rate for you, convert the currency, and deposit Bitcoins with the person you are sending to!

Here is how to send Bitcoins to any address without paying fees:

  1. Go to Ripple.com and register a new wallet.
  2. Choose a gateway which you will use for paying money into your wallet in any currency (Bitcoin, USD, GBP - pretty much anything) or for withdrawing your money in any currency. If you already have Bitcoins which you want to send then most gateways will accept Bitcoin deposits and withdrawals into a Ripple wallet without charging fees. One of the simplest is BTC2Ripple.com. You can also make use of other gateways to buy Bitcoins in another currency, and then transfer them into your Ripple wallet for free.
  3. Go to the send page in your Ripple wallet and send your Bitcoins to anyone who accepts Bitcoins!

Easy as 1,2,3 heh?

How Ripple Works

Ripple combines its own digital currency (XRP) with an innovative peer to peer currency exchange and trading system. So if you want to use your USD to send Bitcoins to someone, then rather than having to buy Bitcoins for a premium from an exchange and then send them, paying a fee, the system automatically looks at all of the people wanting to sell their Bitcoins for USD, chooses the best one, and makes the trade.

In actual fact, anything can be traded and exchanged through Ripple. For example, one new start up called NoFiatCoin is using the Ripple protocol to issue a gold-backed digital currency.Through ripple this can be traded for any currency or other commodity, or you can redeem it for real gold or silver from the issuer's vaults. In a similar way people can trade rewards points, air miles, or any commodity with a trusted issuer or gateway.

Digital Gold

Comments

    0 of 8192 characters used
    Post Comment

    • FlourishAnyway profile image

      FlourishAnyway 

      4 years ago from USA

      It's amazing that such a major retailer is now accepting Bitcoins as payment. Especially if other retailers follow suit, this could become much more mainstream. I like avoiding transaction fees on anything, so that will be helpful to folks, Excellent expertise expressed here, Dean. You're a tech guru.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)