Why Bitcoin Transactions Get Stuck

Bitcoin uses a fee market. Miners prioritize transactions with the highest fee density, measured in sats per vbyte, not a flat dollar amount. When the network is busy, low-fee transactions wait in the mempool until either fees fall or the sender increases the fee. For Canadian users, fee spikes often coincide with market volatility, new listings, or payday patterns when many people move funds from Interac e-transfer funded exchanges to self-custody. If you set a conservative fee during a rush hour, your transaction may sit unconfirmed for hours or even days.

• Fees are measured in sats per vbyte, which reflects how much you pay per unit of transaction weight.
• SegWit and Taproot inputs are more space efficient than legacy inputs, which can lower your required fee.
• Batching payments and consolidating UTXOs during quiet periods reduces future fee pressure.

A slow Bitcoin transaction is rarely lost. It is typically waiting for a miner to include it, or for the sender to adjust the fee.

Two Proven Tools: RBF and CPFP

There are two main ways to increase the effective fee after a transaction has been broadcast. Replace-by-Fee modifies the original transaction by creating a new version that pays a higher fee. Child-Pays-for-Parent adds a new transaction that spends the unconfirmed output and deliberately overpays the fee, pulling the parent and child into a block together. Both methods are standard, safe, and widely supported by reputable wallets.

What is Replace-by-Fee (RBF)?

RBF is a wallet feature based on BIP125 that lets you rebroadcast a replacement transaction that spends the same inputs as the original but with a higher fee. For RBF to work, the original transaction must be marked as replaceable at the time you send it. Most modern wallets have a toggle called opt-in RBF or simply RBF. When enabled, the wallet sets the sequence values appropriately so nodes will accept a replacement.

• Pros: Simple workflow, no need to control the receiving address, and preserves clean history.
• Cons: Requires the original transaction to be opt-in replaceable. Some exchanges disable RBF on withdrawals to reduce user confusion.

What is Child-Pays-for-Parent (CPFP)?

CPFP creates a new transaction that spends an output from the unconfirmed parent. By paying a high fee on the child, you incentivize miners to include both at once. CPFP works even if the original transaction is not RBF-enabled. The key requirement is control over at least one output in the parent transaction so you can create the child. If you are the receiver, CPFP is your go-to tool.

• Pros: Works when RBF is not available and is ideal when you are the recipient.
• Cons: Requires access to the receiving wallet and sometimes a small inbound amount to spend as the child.

Understanding Fees: sats per vbyte and Effective Fee Rate

To succeed with fee bumping, think in sats per vbyte. If the mempool currently prioritizes transactions at, for example, 60 sats per vbyte, an original transaction at 20 will likely stall. An RBF or CPFP attempt should set an effective fee above the current clearing range. If you are using CPFP, the combined fee rate of parent plus child must meet miner expectations. Many wallets estimate this automatically, but you can compute it by summing fees and dividing by total virtual size of both transactions.

• Use SegWit or Taproot addresses to reduce typical vbyte size and lower the sats per vbyte required.
• Consolidate small UTXOs when the mempool is quiet to avoid paying a premium later.
• Batch multiple payments into one transaction when practical to save on total fees.

How to Use RBF: A Step-by-Step Walkthrough

1. Enable RBF in your wallet settings. Look for a setting named opt-in RBF or Make transactions replaceable. Turn it on before sending. If you are using a hardware wallet with a companion app, the setting typically lives in the send form or advanced options.
2. Send your transaction with a reasonable initial fee. If you know you may need to bump it, choose a modest fee but keep RBF enabled.
3. Monitor confirmation progress. If after several blocks your transaction remains unconfirmed, open the wallet and select Bump fee or Increase fee.
4. Select a higher fee tier. Choose a fee that exceeds the current mempool clearing level. When in doubt, add a small buffer. Many wallets show an estimated confirmation target like next block or within 1 hour.
5. Review and sign. If you use a hardware wallet, confirm details on the device screen. Check addresses and amounts match your intent. Only the fee changes.
6. Broadcast the replacement. The new transaction invalidates the old one by spending the same inputs with a higher fee. Your wallet will update the transaction ID if it changed due to modified inputs or change amount.

Tip for Canadian users: if you are withdrawing from a Canadian exchange and do not see an RBF option, you are likely unable to bump from the sender side. Plan ahead by withdrawing to your own wallet where you control the outgoing fees for subsequent sends. Keeping small amounts on exchanges is convenient, but self-custody gives you better fee control and audit trails for CRA.

How to Use CPFP: A Step-by-Step Walkthrough

1. Confirm you control an output in the unconfirmed parent. This is usually the receiving address in your wallet. It will appear as pending or unconfirmed.
2. Create a child transaction. Spend the unconfirmed output back to yourself or to a trusted destination, such as your own cold wallet. Choose a high enough fee so that the combined effective fee of both transactions meets or exceeds the current mempool clearing level.
3. Sign and broadcast the child. The network will accept it even though the parent is unconfirmed, and miners will prioritize including both together to capture the total fee.
4. Wait for confirmation. When the parent confirms, the child confirms at the same time, or soon after if mined in a subsequent block.

If your funds are in a hardware wallet and you practice air-gapped signing, you can still do CPFP by importing the unconfirmed output into your wallet, constructing the child, signing offline, and broadcasting from a watch-only interface. This preserves your security posture while giving you the fee leverage you need.

RBF vs CPFP: Which Should You Choose?

• Choose RBF when you sent the original payment and marked it as replaceable. It is the cleanest and fastest route.
• Choose CPFP when you are the receiver or when the sender did not use RBF. It is also helpful for exchange withdrawals where RBF is disabled.
• Use both only in special cases. Usually one method is enough.

Canadian Context: Exchanges, Banking, and Record-Keeping

For readers in Canada, a few practical realities shape fee management. Many Canadians fund exchange accounts via Interac e-transfer or bank wires, then withdraw to self-custody. Some exchanges default to conservative network fees, and a few disable RBF on withdrawals. If your withdrawal is stuck, CPFP from your own receiving wallet is usually the best fix. Keep clear records of the parent and child transaction IDs, time, and fees. This helps reconcile cost basis and audit trails for CRA. Canadian exchanges are registered with FINTRAC as money services businesses, and they maintain compliance processes that include transaction monitoring. Effective self-custody does not conflict with these requirements, but good documentation keeps your financial picture clean.

• Confirm whether your exchange marks withdrawals as replaceable. If not, plan to use CPFP on receipt.
• During high volatility, avoid sending time-critical payments immediately after funding with Interac e-transfer. Wait for network conditions to stabilize if possible.
• Keep CSV exports and screenshots of transaction details to support your year-end records.
• If moving larger amounts to a new cold wallet, do a small test transaction first, then batch the remainder with an appropriate fee.

Security First: PSBT, Watch-Only, and Air-Gapped Safety

Fee bumping should never force you into risky behavior like exposing seed phrases or signing on a compromised machine. Modern wallets support PSBT, or Partially Signed Bitcoin Transactions, that allow you to prepare a transaction on an online device, sign on a hardware wallet or air-gapped machine, and then broadcast from a watch-only wallet. This workflow is ideal for CPFP, where you may need to construct a transaction that spends an unconfirmed output without connecting your secure device to the internet.

• Keep your seed phrase offline, protected from fire and water, and consider a passphrase if appropriate.
• Use a watch-only wallet on your laptop or mobile phone to track unconfirmed transactions and build fee bumps safely.
• Verify change addresses and amounts on the hardware screen before approving any RBF or CPFP transaction.

Three Practical Scenarios With Step-by-Step Fixes

Scenario 1: You sent a payment with a low fee

You bought Bitcoin from a Canadian exchange, withdrew to your wallet, then sent a payment to a friend with a low fee. After several blocks, it is still unconfirmed.

1. Open your wallet and confirm the transaction is marked replaceable.
2. Choose Bump fee and select a fee tier above the current mempool clearing rate.
3. Sign on your hardware wallet if you use one. Confirm addresses and the new fee on the device.
4. Broadcast. Your wallet will show the new transaction, and confirmation should arrive sooner.

Scenario 2: You are the receiver of a stuck exchange withdrawal

You withdrew from a Canadian exchange to your cold wallet. The exchange did not enable RBF, and the transaction is stuck. You want the funds confirmed so you can consolidate or move them.

1. Identify the unconfirmed output in your wallet. It should appear as pending.
2. Create a CPFP child spending that output to your own address. Pick a fee high enough that the parent plus child combined meet current miner expectations.
3. Sign with your hardware wallet using PSBT if available. Keep your air-gap practices intact.
4. Broadcast the child. Both transactions should confirm together once miners accept the total fee.

Scenario 3: Consolidating small UTXOs during a quiet period

You hold multiple small UTXOs from past purchases on a Canadian exchange. You want to consolidate them into a single UTXO to simplify future spending and reduce fees later.

1. Wait for a low-fee period. Night-time and weekends sometimes see lighter activity, but always check current conditions.
2. Send a self-transfer that pools small inputs into one output. Mark it as replaceable to keep options open.
3. If the fee rises unexpectedly and the consolidation stalls, use RBF to nudge it into the next block without overpaying.

Common Pitfalls and How to Avoid Them

• Forgetting to enable RBF: If your wallet supports it, keep it on by default. You can still avoid bumping if not needed.
• Underestimating combined fee for CPFP: Remember miners consider the parent and child together. If the parent was very low, the child might need a higher fee to pull both across the line.
• Broadcasting from an insecure device: Use watch-only wallets and PSBT for signing. Do not type seed phrases into hot devices.
• Assuming fees are constant: Fees change quickly during market events. Check current conditions before setting your bump.
• Ignoring exchange policies: Some Canadian exchanges may delay withdrawals for compliance checks or disable RBF. If time is critical, withdraw earlier and manage fees from your own wallet.

Best Practices for Cost Control Without Compromising Speed

• Use native SegWit or Taproot addresses: This lowers your vbyte footprint, which reduces fees for the same priority.
• Batch outgoing payments: One transaction with multiple outputs is cheaper than multiple single-output transactions.
• Consolidate during quiet times: Move many small UTXOs into one when fees are low, so your future transactions are leaner.
• Keep a fee buffer: If you need fast confirmation, aim slightly above the going rate to reduce the chance of another bump.

Record-Keeping for CRA and Peace of Mind

Fee bumping generates extra transaction entries, which is fine as long as you log them. Store the parent and child transaction IDs, time, fee amounts in sats, and a short note describing the action, such as CPFP to confirm exchange withdrawal. Many Canadian users keep a simple spreadsheet or export from their wallet to reconcile with exchange CSVs. This helps with cost basis tracking and reduces friction if you ever need to explain movement to your bank or tax professional.

Frequently Asked Questions

Will RBF or CPFP make me pay twice?

No. With RBF you pay the higher fee once on the replacement transaction. With CPFP, you add a fee to the child that effectively covers the shortfall from the parent. You are not paying twice for the same confirmation, you are adjusting the total incentive to miners.

Can the receiver reject an RBF bump?

RBF affects the unconfirmed transaction before it is included in a block. The receiver does not need to approve it. This is normal network behavior and widely accepted. After confirmation, the transaction is final and cannot be replaced.

Is CPFP safe if the parent is stuck for a long time?

Yes, as long as the parent is valid and has not been double-spent. The child will remain in the mempool until the parent confirms. By setting a strong fee on the child, you motivate inclusion of both.

How do Canadian banking policies affect fee bumping?

Bank holds on fiat deposits and exchange withdrawal queues can delay when a transaction first appears on-chain, but they do not change how RBF or CPFP works. Once the transaction is broadcast, your fee strategy is independent of banking timelines.

Does fee bumping change my cost basis for taxes?

Fees paid on transfers between your own wallets may adjust the book value of the coins involved. Keep clear records so your accountant can handle them correctly. Policies can vary with context, so maintain documentation that shows intent and ownership continuity.

Action Checklist for Canadian Bitcoin Users

• Enable opt-in RBF in your wallet settings before sending.
• Adopt SegWit or Taproot addresses for lower fees.
• Keep a watch-only wallet to monitor mempool conditions and build PSBTs.
• Use CPFP when receiving slow exchange withdrawals that are not replaceable.
• Log all bumps with transaction IDs and fee details for CRA records.
• Test high-value flows with a small transaction first.

Conclusion: Take Control of Confirmation Times

RBF and CPFP put you in control of Bitcoin confirmation times without sacrificing self-custody. For Canadians who move between regulated exchanges and cold wallets, these tools are essential. Enable RBF by default, learn CPFP for the cases where you are the receiver, and use PSBT with watch-only setups to keep your keys safe. With a basic understanding of sats per vbyte, mempool dynamics, and combined fee math, you can navigate busy network periods confidently, keep costs predictable, and maintain clean records that support both personal security and Canadian compliance expectations.