#CryptoFees101

What are cryptocurrency network fees?

A cryptocurrency network fee, also known as a transaction fee, is a small amount of cryptocurrency paid to incentivize miners/validators to include the transaction in the next block of the blockchain. The fee amount can vary based on the congestion of the network and the size of the transaction.

Blockchain network fees, often referred to as transaction fees or gas fees, play a crucial role in the functioning and maintenance of decentralized networks like Bitcoin and Ethereum. These fees act as incentives for miners or validators who contribute their computational power to verify and process transactions, ultimately adding them to the blockchain. Network fees ensure the efficient and secure functioning of the system, as they deter spam transactions and malicious activities, while encouraging miners/validators to prioritize transactions with higher fees. This, in turn, promotes a competitive marketplace where users can decide the priority of their transactions by choosing the amount of fees they are willing to pay.