A workaround potential BCH high Tx fees due to compounding micro-transactions
Earlier today, I read a post by @rycharde highlighting the potential issue to be faced when receiving micro-payments through Noise.cash. I was alarmed by it since I'm actively participating in Noise. After going through the posts and the links attached to it, I realized that it's a valid issue.
In fact, I encountered this issue when using Atomic wallet as the recipient address of my BCH earnings from Noise. After accumulating about 1$ worth of BCH, I tried to withdraw from Atomic wallet to an exchange. To my surprised the fee is about $0.50; the Tx fee is 50% of the amount that I'm sending?
This issue specifically applies to BCH holders who are receiving tokens through several transactions with tiny amounts.
Who are these BCH holders? The ones who are actively earning cents through Noise.cash, a microblogging platform that earns you BCH tokens. Normally the number of tokens I receive for my activities is around $0.001 to 0.05 worth of BCH tokens. It's really amazing to learn that these micro-payments are made possible and they are coming at a relatively acceptable speed... comparing to BTC & ETH; BCH is truly the crypto for the masses.
However, there is a potential "major" issue for these micro-payments that are made through the BCH network. I found this article authored by noise.cash, here's an excerpt:
Basically, the multiple transactions with tiny amounts made by Noise.cash will potentially subject you to a relatively high fee.
That may not sound good however there's a workaround that process and it could be the best solution in this case.
I put this to a test.
Let's see how much I spent sending $1.40 worth of BCH from Nexo to Probit. Here are series of screenshots of the whole process.
Here's a note within the withdrawal dialogue in Nexo. Really? 0 fee?
It took 5 minutes to activate the process in Probit exchange.
The 6 confirmations took about 2 hours to process. IMO, the procedure is quite fast in comparison to BTC & ETH using the minimum settings.
The amazing thing about it is that I received the same 0.002 BCH without any network fee!
Now, if you think that it's the best deal that you can get... let me tell you that while your BCH is safely stored in Nexo, it's also earning 5% interest while it stays liquid!
That's why I'm more than convinced that this solution is perfectly suited for Noise users who are earning BCH tokens through micro-payments.