There are a lot of Bitcoin wallets these days, ones that are focused on Bitcoin only while others are general cryptocurrency wallets that has support for both Bitcoin and with tokens, and whichever one you’re aiming for, one consideration you’re thinking about would be to use one with the lowest transaction fee.
Bitcoin wallets with the lowest transaction fees
There are generally two types of wallets to consider when determining which ones have the lowest transaction fee, and that would be custodial wallets that are generally on exchange platforms and non-custodial ones.
Also read: Custodial Vs Non-Custodial Wallets: Comparing Security, Privacy, and Usability
Transaction fees on custodial Bitcoin wallets
While some people might believe that different wallets have different fee structures, that would generally depend on the type of wallet one chooses to use, and with a custodial wallet like one on an exchange, fees would be different from one to another like Binance and KuCoin for example, where the fee you’d have to pay from withdrawing your BTC from one exchange, or the fee from exchanging it for another token, might be higher or lower from another exchange platform, and almost all tokens have their own different fee rate on these platforms, as well as having them changed every once in a while, so it would be hard to determine which exchanges with the lowest fees to recommend in this case.
You can also check out: What Are Crypto Exchanges Withdrawal Fees? Why Pay Them?
Transaction fees on non-custodial Bitcoin wallets
most non-custodial wallets don’t impose fees on their users’ transactions, but there are transaction fees that are the same across all of these wallets when sending Bitcoin or any other token from yourself to another address, and those would be the network fee for each of these coins.
So there’s technically no “best bitcoin wallet” in regards to having the lowest transaction fees since they all share the same network fees, but some of these Bitcoin wallets like Blue Wallet, Guarda, or Exodus for example would provide you with fee suggestions and their best estimate on how long it would take for the transaction to get confirmed, and with WH Cypher , it’ll handle your multisig transactions at a lower cost because of its utilization of threshold signature technology. It would depend on how they’re reading from the blockchain itself with the mempool and seeing how congested Bitcoin’s network is, or any other crypto token, to give you those suggestions and timeframes.
General notes on having a low transaction fee
If you’d like to mainly hold your funds in a custodial wallet on a trading platform, which is not advisable, then you’ll have to check up on each exchange’s fee rates for Bitcoin and Ethereum or any other crypto token you care about, for your withdraws and buy and sell orders, where these cryptocurrency exchange platforms usually have a page with a list mentioning those rates, compare them and factor in the cheapest one in your decision-making process, all the while checking up on those lists again every once in a while to see if there were any changes made.
If you mainly want to use a non-custodial wallet, be it hot or cold storage, then it mostly comes down to preference of which wallet you like more in regards to other factors like its visuals, features, good user interface and experience, and so on. Though generally speaking, if you’d like to always pay the lowest fee possible, then you’d need either patience as you send out transactions with low fees, especially in a time of network congestion, or make use of the fee suggestions that some wallets provide, balancing low-cost and speed to your liking.