#CryptoFees101

Crypto fees, often called transaction or network fees, are charges users pay to process and validate transactions on a blockchain. Here's a brief overview:

Purpose: Fees incentivize miners or validators to confirm transactions and secure the network.

Types:

Transaction Fees: Paid for sending crypto (e.g., Bitcoin, Ethereum). Varies by network congestion and transaction size.

Gas Fees: Specific to Ethereum, paid in ETH for executing smart contracts or transactions.

Withdrawal/Deposit Fees: Charged by exchanges for moving crypto to/from wallets.

Trading Fees: Exchanges charge for buying/selling crypto (e.g., 0.1%-1% per trade).

Factors Affecting Fees:Network demand: Higher congestion increases fees.Transaction priority: Faster confirmation often costs more.

Blockchain type: Bitcoin fees differ from Ethereum or layer-2 solutions like Lightning Network.Examples:Bitcoin: ~$0.50-$5 per transaction (varies).

Ethereum: Gas fees can range from $1-$50+ during peak times.

Tips:Use low-fee periods for transactions.Consider layer-2 solutions or low-fee blockchains (e.g., Solana, Polygon).Check exchange fee structures before trading.