#CryptoFees101

Cryptofees101 refers to the foundational understanding of transaction fees within the cryptocurrency ecosystem. When users make transactions on a blockchain network—whether it’s sending coins, executing smart contracts, or interacting with decentralized applications—they are typically required to pay a fee. These fees serve two main purposes: incentivizing miners or validators who maintain the network and preventing spam by attaching a cost to each action. The fee structure can vary significantly between blockchains. For example, Bitcoin uses a fee-per-byte model where fees increase based on transaction size and network congestion, while Ethereum charges gas fees based on computational effort, measured in units of gas and paid in ETH. Fee volatility is common and can spike during times of high demand, leading to delays and increased costs. Layer 2 solutions and alternative chains aim to reduce these fees and improve scalability. Understanding cryptofees is essential for users who want to optimize transaction timing and cost, especially when operating across multiple chains or using decentralized finance (DeFi) platforms.