#CryptoFees101 🪙 #CryptoFees101: Why is the transaction fee important?
Every time you send cryptocurrency — Bitcoin, Ethereum, or even USDT — you pay what is known as a transaction fee. But where does it come from, and why does it change? Let's break it down in simple terms 💡
🔍 What is a fee?
It is the payment you make to miners (in Proof of Work) or validators (in Proof of Stake) to process your transaction. It incentivizes network activity and ensures blockchain security.
📈 Why do fees "jump"?
Demand 🧑🤝🧑: more transactions → more competition → higher price.
Throughput ⏳: the network has a limited amount of space in a block.
Network difficulty 🔧: the more complex the calculations, the higher the fee.
⚖️ Examples:
Bitcoin: from $0.50 to $10+ during peak hours 🚦
Ethereum: $1–$20+ depending on dApps and NFT activity 👾
Solana, Polygon: pennies or even ≈$0.001 💨
💡 How to save?
Send transactions during off-peak hours (for example, at night 🕯️)
Use blockchains with low fees 🔽
Apply Layer 2 solutions (such as Arbitrum or Optimism ⚡)