#CryptoFees101 #CryptoFees101: Understanding Transaction Costs
Crypto fees are payments required to process transactions on blockchain networks. These fees compensate miners or validators for securing the network.
Types of Fees:
1. Gas Fees (Ethereum): Paid in ETH, varying with network congestion.
2. Transaction Fees (Bitcoin): Based on transaction size and demand.
3. Protocol Fees (DeFi): Charged by platforms like Uniswap for swaps.
Factors Affecting Fees:
- Network congestion: Higher demand means higher fees.
- Transaction speed: Faster processing costs more.
- Blockchain type: Fees differ across networks (e.g., Solana often has lower fees than Ethereum).