How to speed up an incoming Bitcoin transaction?
By following this guide, you will be able to have the transaction going from escrow to your wallet confirmed quickly by using the CPFP feature.
As Bitcoin gains adoption, transaction fees tend to increase. With the number of transactions per minute increasing, miners generally prioritize transactions with higher fees.
This can cause the fee rate we choose for our release transactions from escrow to be relatively low to what is currently being paid, causing our transactions to remain unconfirmed for hours or days.
If this happened to us, we can resort to the CPFP (Child Pays For Parent) feature to solve it, although we must keep in mind that this will have a cost, which is the amount of the higher fee paid at the moment we execute it, and the new transaction will be confirmed in the next block.
This involves making a new transaction using the funds from the previous unconfirmed transaction, and paying a higher fee.
The miner who takes the new transaction must also include the previously unconfirmed transaction and thus can earn both commissions.
To use CPFP, you need a Bitcoin wallet that allows it. Different wallets have different configurations for the implementation, so check the steps before using them.
For this guide, we will use Electrum, but you can also perform this operation with Samourai and Blue wallet, among others.
Step 1: In Electrum, go to “History”, right click on the unconfirmed transaction from escrow and select “View Transaction”.
Step 2: Look for the address highlighted in the output field.
Write down this address.
Step 3: In the menu, go to Tools -> Preferences -> Transactions; and make sure that the option “Spend only confirmed coins” is unchecked.
Step 4: Go to the “Addresses” tab and in the list, choose any of the addresses available for receiving. Preferably one that has not yet been used. Copy that address. We will use it to receive the new transaction that will speed up the delayed one.
Step 5: Next, in the same list, find the one you wrote down in step 2, this is the address where you received the transaction pending confirmation.
Right-click on that address and select “Spend from”.
Step 6: In the spending window that opens, go to the “Pay to” field and paste the receiving address you chose in step 4.
Enter any small amount (any amount less than the unconfirmed amount).
Move the slider next to “Fee” all the way to the right and send the transaction.
This will create a transaction that will be sent to yourself with a higher fee rate. Since the input for this transaction is the output of the unconfirmed transaction, the miner taking the new one will be forced to confirm both.
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