Why Do I Pay Mining Fees for Both BTC and ETH? Why Not the Seller?
Short Answer
When sending a cryptocurrency transaction (e.g., from your OrxCash Wallet), mining or gas fees are paid by the sender — not the receiver or the seller — because it’s the sender who initiates and broadcasts the transaction to the blockchain network.
What Are Mining Fees?
Mining fees (also known as network fees or gas fees) are payments made to incentivize validators or miners to process and confirm transactions on a blockchain.
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For Bitcoin (BTC): fees go to miners securing the Bitcoin network.
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For Ethereum (ETH): fees go to validators securing the Ethereum network (via Proof-of-Stake).
Why You Pay Fees as a Sender
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Initiator Responsibility
You are the one initiating the transaction by sending coins. Therefore, it’s your wallet that submits the transaction to the network and must pay the fee. -
Network Protocols
All blockchains, including Bitcoin and Ethereum, follow the protocol where the sender always pays. -
OrxCash Doesn’t Charge Extra Fees
The mining fee is not collected by OrxCash. It goes directly to the blockchain to process your transaction faster.
Example Scenario
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You’re buying a product or service using BTC or ETH.
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Your wallet sends the funds to the seller’s address.
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The blockchain processes the transaction.
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To do this, it requires you (the sender) to pay a small mining fee — just like paying a postage fee when mailing a letter.
❓ Why Not the Seller?
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Sellers only receive funds.
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They don’t initiate or broadcast any transaction — so they aren’t responsible for blockchain processing costs.
Important to Know
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Mining fees are not fixed — they vary depending on network congestion and priority.
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You can adjust fees (on some wallets) to speed up or slow down confirmation.
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Using Layer 2 solutions or cheaper networks (like Polygon or BSC) can reduce costs significantly.