Tried withdrawing BTC from bitsquare wallet

I wanted to move some bitcoin from my bitsquare wallet to a different wallet. I am still quite new to bitcoin and there are some things that I don’t understand.

First, I went to the settings and set the “Withdrawal transaction fee (satoshi/byte)” to 240 (I understand this is whats recommended). Then I went to the “Available for withdrawal” tab in “Funds”.

The first thing I noticed is that my funds are divided by address (I assume this is the address that received each transaction). This is the first time I have seen this on a crypto wallet and is kinda confusing, so if anyone can explain that I would appreciate this (but this is not yet the main question).

I selected an address and lowered the amount of BTC to send to 0.005 in order to test this transfer of funds. I then added the address of the wallet that was to receive the btc and clicked “Withdraw selected”. The popup appeared with the summary and here is where my question is. Where is says “Required transaction fee is” it says “0.0024 BTC (1066.67 satoshis/byte)”.

Is this a bug? Or have a not yet fully understood how transaction fees are calculated???


the reason why there are several addresses is to give people more control about their privacy.
If you combine several inputs (from addresses) you are connecting those and it can be assumed that the addresses are owned by the same person.
This is called coin merge and is one issue that most people lose easily their privacy when dealing with Bitcoin. Bitcoin Core has a similar feature called coin control where you can select from which previous transactions you want to use the funds.

Regarding the tx fee:
Yes that is kind of a bug or improper implementation. It is fixed for the next version where the fee calculation is done correctly and also support fee estimation services.
The value is kind of right when the transaction size is 1 KB, but for smaller sizes it does not handle that properly.

I understand how using different addresses for receiving money helps with privacy. But how does having the funds split help when they are already within my wallet?

they are not split up, they are in different tx outputs (associated to addresses). so it is not artificially made, its happening that they get split up during transactions (with change output…)

Hadn’t really read about how the output works (sending). Still don’t think I understand it too well. But I will continue researching. Thank you :slight_smile:

yes it is not trivial how transactions work. but there are much good resources out and its worth to learn and understand. basically there are only transactions in bitcoin. a tx has 1 or more inputs from the output scripts of other transactions. so that generates a graph of connected transactions. if you want to spend more btc than u have at one tx output, you need another tx output and with the coin merge you reveal the information that both addresses from where the output comes are under your control because only if you have the private keys you can spend that. this is the privacy weakness in the btc design and the only cure against it is coin join or avoiding to merge addresses where maybe one address is connected to your real life ID (if it was used at a centralized exchange or merchant).
it is a complex topic and a bit hard for people who are new to btc, but important.

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