Network fees are essential for the smooth operation of a blockchain network. They incentivise the miners to process and validate transactions on the blockchain network securely.
When you make a Buy Trade with Coinify, a part of the cryptocurrency amount you buy is deducted to covert the Network fee. The amount we deduct for the Network fee is based on the current network conditions at the time of the trade creation. However, the final network fee paid to the miners may vary from the estimated fee due to real-time network conditions at the time of transaction execution. Meaning that the actual network fee for your blockchain transaction may be higher or lower than the deducted amount. Rest assured, we strive to minimise these fees while ensuring your transaction is processed reliably.
When it comes to Sell Trades or Coinify Payments, the Network fee amount is calculated directly in the customer's wallets from which they send the transaction to complete a sell trade or a payment. Coinify has no oversight of the network fee in these cases.
Please note that we do not collect transaction fees in any case.
Can the network transaction fees affect the processing of my trades?
The size of the transaction fees changes depending on how busy the network is. When the number of transactions on a blockchain network increase, the fee costs increase as well. Sometimes this can happen unexpectedly fast. Coinify always processes transactions with a network fee estimated to get them confirmed in a timely manner.
Keep in mind that even though a transaction might take longer to reach your wallet, the final cryptocurrency amount quoted for a buy trade and confirmed by the customer, once it is processed on our end, will not be affected by the delays.