miner includes a transaction to a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-block/">block while the other network <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-node/">nodes validate the block. This means that the block has one <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-confirmation/">confirmation. However, having only one confirmation is not the most optimal option. The general rule of thumb is to <strong>wait for a few more confirmations to guarantee that the transaction is secure</strong>. Every new block added on top will be considered another confirmation.</p>\n<p>Depending on the blockchain network, the number of confirmations is different. <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-bitcoin/">Bitcoin recommends 6 confirmations for successful transactions. On the other hand, <a href=https://www.bitdegree.org/"https://www.bitdegree.org/crypto/buy-ethereum-eth/">Ethereum requires at least 7 confirmations, however, participants usually wait for a higher number than that to ensure the transaction is irreversible.&nbsp;</p>\n<p>Some blockchains offer to <strong>speed up the confirmation process</strong> for a higher <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-transaction-fee/">transaction fee</strong></a>. This fee serves as an incentive for miners to do that specific transaction first.&nbsp;</p>\n<p>It&rsquo;s possible to use confirmation time as a <strong>metric</strong> when calculating the average speed of a blockchain network. Although, it&rsquo;s not as accurate due to fluctuations in demand and other individual circumstances. 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Confluence defines <strong>the convergence of numerous trading signals and investment methods.</strong></p>\n<p>Considering long-term investments, when an investor builds a <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-portfolio/">portfolio based on diverse methods, confluence might occur. Usually, investors do that when they want to invest in numerous assets. Typically, this results in portfolio <strong><a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-diversification/">diversification. </strong></p>\n<p>Though keep in mind that confluence and diversification differ. Confluence is about the utilization of many strategies in one portfolio. Diversification, on the other hand, is about a portfolio with various asset types.</p>\n<p>Confluence in trading and <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-technical-analysis-trend-analysis-ta/">technical analysis</strong></a> can be defined as the creation of a trading plan. Such a plan incorporates many trading strategies or technical analysis indicators. Additionally, confluence can refer to the use of various trading signals in tandem. This assists while checking the authenticity of a possible buy or sell signal.</p>\n<p>Consider the case in which a trader identifies <strong>a possible reversal price zone based on resistance and support levels. </strong>However, before opening a position, the trader also examines the position of <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-moving-average-ma/">moving averages</strong></a>. This way the trader determines if any of them point to the same reversal zone. Aside from that, he/she also applies the <a href=https://www.bitdegree.org/"/crypto/learn/crypto-terms/what-is-fibonacci-retracement-level/">Fibonacci Retracement approach</strong></a>. This helps to confirm the accuracy of the analysis even more. Overall, the trader can use as many trading signals and TA tools as he/she wants.</p>\n<p>Thus, we can argue that the utilization of many sources of data and trading signals can <strong>validate a market trend or a price reversal level.</strong> As a result, a trader is more certain if the position should be opened or closed. However, the trader might also decide to simply wait for a better opportunity to invest.</p>","level":"medium","meta_title":"What is Confluence? 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Crypto Terms: Letter C

What is Confirmation Time?

Confirmation Time MEANING:
Confirmation Time - the amount of time passed from the second a transaction is sent to the second it’s recorded in the blockchain network.
Easy
1 minute

Let's find out Confirmation Time meaning, definition in crypto, what is Confirmation Time, and all other detailed facts.

Confirmation time is the amount of time it takes for a transaction to be sent to the blockchain and confirmed

The process has a few steps. A miner includes a transaction to a block while the other network nodes validate the block. This means that the block has one confirmation. However, having only one confirmation is not the most optimal option. The general rule of thumb is to wait for a few more confirmations to guarantee that the transaction is secure. Every new block added on top will be considered another confirmation.

Depending on the blockchain network, the number of confirmations is different. Bitcoin recommends 6 confirmations for successful transactions. On the other hand, Ethereum requires at least 7 confirmations, however, participants usually wait for a higher number than that to ensure the transaction is irreversible. 

Some blockchains offer to speed up the confirmation process for a higher transaction fee. This fee serves as an incentive for miners to do that specific transaction first. 

It’s possible to use confirmation time as a metric when calculating the average speed of a blockchain network. Although, it’s not as accurate due to fluctuations in demand and other individual circumstances. A better alternative to determine the speed of a blockchain network is through the average confirmation time in relation to the recent blocks and the current state.