#CryptoFees101 Understanding Crypto Fees
Crypto fees are charges associated with transactions on a blockchain network. These fees can vary depending on the type of transaction, network congestion and the cryptocurrency being used.
Types of Crypto Fees
- *Transaction Fees*: Paid to miners or validators for processing transactions on the blockchain. These fees incentivize miners to secure the network and verify transactions.
- *Network Fees*: Charged for interacting with smart contracts or decentralized applications (dApps) on a blockchain.
- *Exchange Fees*: Charged by cryptocurrency exchanges for buying, selling or trading cryptocurrencies. These fees can include trading fees, withdrawal fees and deposit fees.
- *Wallet Fees*: Some cryptocurrency wallets charge fees for transactions, deposits or withdrawals.
Factors Affecting Crypto Fees
- *Network Congestion*: High network activity can increase transaction fees as users compete for limited block space.
- **Transaction Size