By Edward Valencia on The Capital
As the ‘fear of missing out’ (FOMO) starts to set in due to the 20–40% increase in major coins, expect to be paying higher transaction fees. When it comes to major coins like bitcoin, litecoin, and ether, you should expect higher confirmation times as well as fees in the near future. We’re beginning to see some momentum in the crypto markets that many have been waiting for. This is due to markets being stagnated from some time and in need of a breakout in either direction.
In these types of situations, it’s best to stick to your strategy so that you don’t get pushed in with the crowd when making investment decisions. Due to the consensus mechanism, proof of work (PoW), high traffic will result in a bottleneck that will frustrate many investors. This only goes for actually transferring coins from one wallet to another, not actively trading in exchanges. Centralized exchanges hold your assets for you which is why there are no moving coins when making trades. It’s only when you decide to withdraw your funds that the coins will go through the blockchain network.
As the USD continues to dwindle in value and assets like bitcoin continue to be recommended as a hedge, we can expect its price to grow as our situation worsens.
Expect Higher Crypto Fees was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
Post fetched from this article