#CryptoFees101 Sure! Here's a clear, beginner-friendly guide to Crypto Fees 101:
🔍 Crypto Fees 101: What You Need to Know Before Sending or Trading
Understanding crypto fees can save you money and frustration. Here’s a quick breakdown of the main types of fees you'll encounter in the crypto world:
🔹 1. Network (Blockchain) Fees
Also called gas fees or transaction fees, these are paid to the network (miners or validators) for processing your transaction.
Blockchain Typical Fee Type Cost Range Notes
Ethereum (ETH) Gas fee $5 – $50+ Varies wildly based on network congestion
Bitcoin (BTC) Miner fee $1 – $20 Higher during peak demand
Solana (SOL) Fee per txn < $0.01 Extremely cheap and fast
Polygon (MATIC) Gas fee ~$0.001 Great for low-cost DeFi
Arbitrum/Optimism L2 Gas fee ~$0.05 – $0.30 Cheaper than Ethereum L1
🔹 2. Exchange Fees
When you buy/sell/trade crypto on a centralized exchange (like Binance, Coinbase, or Kraken), they charge fees like:
Trading Fees: Typically 0.1% – 0.5% per trade
Spread Fees: Hidden fees where the platform marks up the price
Withdrawal Fees: Charged when moving crypto off the exchange
Exchange Trading Fee Withdrawal Fee Example
Binance 0.1% 0.0005 BTC
Coinbase ~0.6% (retail) ~$1–$20 depending on coin
Kraken 0.16% / 0.26% Varies by asset
🔹 3. Protocol Fees
When you use decentralized apps (dApps) like Uniswap, Aave, or Curve:
Swap fees: Usually 0.3% per trade (e.g., Uniswap)
Borrow/Lend fees: Vary by protocol and demand
Gas fees: Still required to interact with the smart contracts