Cryptocurrency has taken the world by storm in recent years, with people from all walks of life investing in digital assets. The technology that underpins cryptocurrency, blockchain, is also being implemented in other industries such as supply chain management and healthcare.
However, one of the biggest criticisms many people have of Bitcoin, the largest cryptocurrency in the world, is its slow transaction times. Bitcoin can take 40-90 minutes to fully process end-to-end. This can be frustrating for users, especially when they are in a physical store with strict payment rules or trying to make urgent payments.
Fortunately, there are a few things you can do to speed up your crypto transfers. In this article, we will share with you some tips on how to send cryptocurrency transactions faster.
How to send cryptocurrency
If you are send cryptocurrency like bitcoin from one wallet to another, the process is quite simple.
First you need to know your recipient’s bitcoin address. If you are dealing with another type of cryptocurrency, you will also need to know the appropriate wallet address for that.
Once you have this information, simply go to your wallet application and copy the address in the Send to field. Next, select the amount of cryptocurrency you wish to send and press confirm.
The process will then begin and you just have to wait for the transaction to be fully processed. Depending on the cryptocurrency you are using and network conditions, this can take anywhere from a few minutes to an hour. Bitcoin’s transaction time usually takes the longest.
How to Send Faster Crypto Transfers
Slow bitcoin transactions are an issue that all crypto traders should be prepared for when dealing with this digital asset.
But is it really unavoidable?
It turns out that there are a few workarounds that can help you send crypto to your recipients faster. Here are those alternatives.
1) Use the Bitcoin Lightning Network
One way to speed up Bitcoin transactions is to use the Bitcoin Lightning Network. The Lightning Network is a second layer solution that relies on the Bitcoin network.
The Lightning Network allows two participating nodes to create a direct channel between them. These nodes can then perform an unlimited number of transactions with each other without having to wait for confirmations from the blockchain.
The Lightning Network also mitigates security issues associated with off-chain solutions. This is because all transactions made on the Lightning Network are always made on the mainnet’s Bitcoin blockchain.
So how does this speed up crypto payments? Well, the Lightning Network has a highly scalable system. This means that the network can handle a large number of transactions and process them in milliseconds. Energy costs are also significantly reduced as the network does not require PoW confirmation.
It’s a great concept in theory. However, there are drawbacks. On the one hand, this network costs a fee to open and close a payment channel. Low routing charges are also applied to validating nodes. This can keep miners away as they don’t have enough incentive to validate these transactions.
Lightning Network is also vulnerable to malicious attacks. That being said, if these issues are resolved, Bitcoin Lightning Network can be a powerful tool in solving Bitcoin’s slow transaction speeds.
2) Use other cryptocurrencies
Although not much can be done to speed up native Bitcoin transactions, you can still use other cryptocurrencies that offer faster transaction speeds.
Here are some of the altcoins you can use for faster crypto payments.
When it comes to transaction speeds, Ethereum is one of the best alternatives to Bitcoin. Ethereum only takes 5 minutes to process a transaction, which is 10 times faster than Bitcoin.
Gimbal is a Proof of Stake Altcoin which focuses on providing fast transaction speeds. ADA transactions take a bit longer than Ethereum, but it’s still much faster than Bitcoin. Cardano transactions take around 10 minutes to be confirmed.
XRP is the fastest crypto to send payouts against any other cryptocurrency. It’s pretty cheap too with minimal fees.
A single XRP transaction is instantaneous, leaving little to no room for delays. This is due to its consensus protocol which does not require any mining.
Why is Bitcoin slow in the first place?
Bitcoin is slow due to its intentional design. To clarify this, it is essential to note that Bitcoin blockchain confirmations are secured using a proof-of-work (PoW) mechanism.
In this system, when someone wants to make a transaction, validators in the Bitcoin network have to calculate a complex mathematical problem through a series of pre-selected nodes. Once the response has been resolved and a consensus between the nodes has been reached, the transaction is then recorded on the blockchain and a new block is created.
This procedure is necessary for several reasons. On the one hand, it helps preserve the privacy and personal information of the person making the transaction. One of the main draws of crypto is its decentralized nature, which allows users to remain anonymous, so this is a good thing for users.
The PoW algorithm also prevents unwanted data tampering and blocks fraudulent activity. This eliminates the risk of vulnerability within the blockchain.
Although PoW algorithms are safe and useful on their own, they have their downsides. For example, long downtimes.
This downtime can also be compounded by the fact that Bitcoin’s mempool is often congested. The mempool is basically a holding area for all unconfirmed transactions.
When too many people transact Bitcoin at the same time, the longer it takes for a transaction to be officially confirmed. This can cause delays of up to one hour and thirty minutes at most.
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