When looking for an efficient payment system, one of the most important factors is how cheaply value can be transferred to another party, namely fees. Early Bitcoin boasted fees much lower than any traditional payment method, and many coins still maintain a commitment to this vision. Here are the top digital currencies and how they compare to each other in terms of low fees.
Note: we included the top digital currencies meant, or otherwise used, for use as money. Seven-day simple moving average included for context to show data wasn’t cherry-picked. All data from BitInfoCharts.com
Average Fee: $2.91 (Simple Moving Average: $2.44)
Median Fee: $1.83 (Simple Moving Average: $1.36)
As could be expected, Bitcoin’s fees rank the highest in the businesses. A typical transaction now will cost around $2 to move, making small purchases very inconvenient. The situation will likely not improve over the short term, as a 2mb block increase is still controversial, and the scaling solution of choice for Bitcoin moving forward seems to be off-chain lightning networks, which may take some time to implement.
Average Fee: $1.64 (Simple Moving Averge: $1.50)
Median Fee Not Available
Surprisingly for a coin with much lower use than Bitcoin, Monero ranks consistently high in fees due to the increased data load of its encrypted transactions. Also due to this encryption, median fees are difficult to ascertain, so we will have to guess that a typical transaction will cost more than $1.
Average Fee: $0.27 (Simple Moving Average: $0.29)
Median Fee: $0.14 (Simple Moving Average: $0.13)
As the consistent #2 in the cryptocurrency ranking charts, the Ethereum comes under a high network load, sometimes higher than that of Bitcoin. For this load its fees have held up remarkably well, with a typical transaction costing about 14 cents. This does of course vary during periods of high network stress, for example during a hotly-anticipated ICO presale.
Average Fee: $0.19 (Simple Moving Average: $0.17)
Median Fee: $0.067 (Simple Moving Average: $0.064)
The result of Bitcoin’s recent chain split, Bitcoin Cash aims to solve scaling by having 8mb blocks. As such, and combined with its relatively low network traffic, the typical transaction will cost about 7 cents. This will likely stay low for the time being, as blocks are very far from being full.
Average Fee: $0.12 (Simple Moving Average: $0.16)
Median Fee: $0.025 (Simple Moving Average: $0.035)
With a block interval four times quicker than that of Bitcoin, Litecoin has a lot of extra capacity for transactions, ensuring the fees for each one stay low, with a typical transaction costing about 2-3 cents. While no major on-chain scaling improvements are planned for Litecoin, the network will likely move to off-chain scaling solutions like lightning networks, meaning this base fee is unlikely to increase anytime soon.
Average Fee: $0.11 (Simple Moving Average: $0.13)
Median Fee: $0.014 (Simple Moving Average: $0.013)
Meant to scale massively on-chain and aimed at a mass-market use case as digital cash, Dash currently has the lowest fees in the game, with a typical transaction costing about 1-2 cents. This fee is set to be lowered later this year, with sub-penny transactions again becoming a reality. Dash has an ambitious scaling roadmap for incentivizing an infrastructure to scale to mass levels over the years, as well as a stated commitment to keeping fees as low as possible, so this trend is likely to continue.
thats the game.
For bitcoin cash you have
> Average Fee: $0.19 (Simple Moving Average: $0.17)
> Median Fee: $0.067 (Simple Moving Average: $0.064)
Then you say
> the typical transaction will cost about 7 cents
Something is wrong there.
Something is not wrong. $0.067 is 6.7 cents. You can’t have less than one cent, so rounded up that’s 7.
No mention of NEM? Granted they harvest a variable fee based on the message, with 1 NEM being default w no message. Even though, exchange is always changing. Although they are voting to decrease this given the high market price. But yes, NEM should be in this list as a consistent top 5 alt coin
He probably had the sh!tcoin filter turned on…
LOL yes I did have that on.
I would hesitate to call something that’s entirely premined and where a full half is owned by just 10 addresses a “currency,” and under the same thinking would question its ranking. After all, if it isn’t widely distributed at all, the market cap doesn’t really apply.
I’ve heard these concerns before. It’s why i think Byteball is so brilliant with its distribution method to holders of bitcoin who opt-in. That said, I don’t see how premining to those investing their resources to development of such a project disqualifies it from being a currency. Just like employees owning stock of a company essentially. Further, it’s a way of the team to fully dedicate time to the project while being able to eat. Also not sure how it’s distribution invalidates the market cap. Yes, holding a significant amount can impose scarcity on the market, but the systems of Masternodes, Delegated Harvesting, and POI incentivize actually USING NEM and keeping it into the system and not constantly trading and converting back to USD. That makes the case for it being a currency even stronger, not to mention a significant topic of the article is transaction volume and NEM has one of the highest capabilities for fielding many transactions per second. So, my comment still stands. Excluding NEM from your analysis was questionable. Would’ve loved to see it in there.
Let me hit you with some Merriam-Webster real quick:
Note both “circulation” and “medium of exchange.” 10 addresses controlling almost half the coin supply, with no way of getting some outside of buying from current owners, isn’t a good example of circulation. Second, what can you buy with XEM? Who’s buying stuff? I know that BitCart alone does over $100,000 in Dash sales per month, and there’s almost 300 other businesses around the world that take it:
Maybe it’s a crypto asset, or crypto-something else. It’s not a cryptocurrency as far as I’m concerned.
valid concern. I think that question isnt asked enough for many cryptos tbh. I’ll just say, that the actual use doesn’t impact it’s capabilities for use. The system behind NEM is rock solid. Efficient. Aligns incentives for users for it to be a sustainable currency that can be relied on and scaled. Has a solid dev team. They are just now starting to ramp up their marketing, now that they’re starting to successfully implement NEM. Mijin will be live soon. The COMSA ICO is big as well. Asset transfer. Reputation score. Multi-sig. All valuable aspects of finance, on top of its currency capabilities. So you’re willing to write it off as a “Top Cryptocurrency” despite this because of a principled stance on pre-mined coins? I can respect that, but I’d think that it warrants further analysis beyond its coin issuance methodology
@seanballard:disqus What’s good about NEM/XEM ? compared with Dash which already accepted by ApplePay ?
You completely left out Iota, which has ‘Zero’ transaction fees. Once the Iota project gets moving it will consume the whole market.
First it’s a newcomer to the “top” so it has to earn its place. Second, I used the “not mineable and significantly premined” filter to get rid of all ICOs and other pump tokens to try to keep only real currencies. Third, is it even money? Or something else?
Bash low fees too. https://uploads.disquscdn.com/images/3ac4cfa09f35af6bfdb89d54075ad7208b529a389b3ea7eb065426e3d37b5d20.png
Blackcoin still has them all beat hands down.