#CryptoFees101 Here's a breakdown of the key types of crypto fees and what influences them:
I. Types of Crypto Fees
* Network Fees (Miner/Validator Fees / Gas Fees):
* These are the most fundamental type of fee in crypto.
* Purpose: They are paid directly to the miners (in Proof-of-Work blockchains like Bitcoin) or validators (in Proof-of-Stake blockchains like Ethereum) who process and confirm transactions on the blockchain. This incentivizes them to secure the network and include your transaction in a block.
* How they work: When you send a transaction, it goes into a "mempool" (memory pool) of unconfirmed transactions. Miners/validators prioritize transactions with higher fees, as this increases their reward.