#CryptoFees101

**Cryptofees 101: The Cost of Blockchain Activity**

Crypto fees are payments required to execute transactions or operations on a blockchain network. They serve two primary purposes:

1. **Network Security & Incentives:** Fees compensate validators/miners for securing the network, processing transactions, and preventing spam (e.g., Bitcoin transaction fees, Ethereum "gas").

2. **Protocol Usage:** Fees are charged for using specific services like decentralized exchanges (trading fees), lending protocols (borrow/interest fees), or NFT marketplaces (minting/commission fees).

**Key Fee Types:**

* **Transaction Fees:** Paid to send crypto between wallets (varies by network congestion & complexity).

* **Gas Fees (Ethereum):** Computational cost paid in ETH/Gwei.

* **Trading Fees:** Charged by exchanges (centralized/CEX or decentralized/DEX) per trade.

* **Withdrawal/Deposit Fees:** Charged by CEXs.

* **Protocol Fees:** For using DeFi services.

**Important:** Fees fluctuate significantly based on network demand (congestion), chosen network (e.g., Solana often cheaper than Ethereum), and transaction complexity. Always check estimated fees before confirming.