#CryptoFees101
Today topic is cryptofees.
Crypto fees, also known as transaction fees, network fees, or gas fees, are the costs associated with processing transactions on a blockchain network. These fees are paid to miners or validators who secure the network and add transactions to the public ledger. They are an integral part of how cryptocurrencies function and incentivize the maintenance of the blockchain.
Here's a breakdown of different types of crypto fees:
Transaction Fees:
These are the primary fees paid for transferring cryptocurrency from one address to another. They are also known as network fees or gas fees, depending on the specific blockchain.
Trading Fees:
Exchanges charge these fees when you buy, sell, or trade cryptocurrencies on their platforms. They can be in the form of maker fees (for placing orders) or taker fees (for executing trades).
Withdrawal Fees:
Some exchanges may charge fees for withdrawing cryptocurrencies to external wallets.
Staking Fees:
Platforms like Coinbase might charge a commission on the rewards received from staking.
Custody Fees:
Some exchanges might charge fees for holding cryptocurrencies in your account, especially for longer periods.
