To store your bitcoins while minimizing transaction fees, here are some practical tips.
1. Use an offline wallet (cold wallet)
Hardware wallets (like Ledger or Trezor) or paper wallets allow you to store your bitcoins offline. This reduces fees, because you do not need to make frequent transactions.
Fees only apply when you transfer your bitcoins from this wallet.
2. Favor wallets that allow you to customize fees
Some wallets, like Electrum, allow you to set your own fees. In case of low network congestion, you can opt for very low fees.
Monitor the mempool (Bitcoin transaction queue) to send your transactions when fees are at their lowest.
3. Use the Lightning Network
The Lightning Network allows instant transactions with very low fees. You can deposit your bitcoins into a Lightning channel to make payments or transfers without high fees.
4. Batch Transactions
If you need to send multiple payments, batch them into a single transaction. This reduces the total fees per transaction.
5. Minimize Outgoing Transactions
Keep your bitcoin in a single address whenever possible. Transactions with multiple inputs or outputs can increase fees.
6. Use Low Activity Times
Fees vary based on how congested the Bitcoin network is. Watch for off-peak times (often weekends or during periods of low economic activity) to reduce costs.
7. Avoid Costly Middlemen
If you store your bitcoin on an exchange (like Binance or Coinbase), be aware that they have their own withdrawal fees. Transfer your funds to a personal wallet to avoid these fees.
