#CryptoFees101 covers the fundamental understanding of various fees incurred when interacting with cryptocurrencies. Unlike traditional banking, where fees are often fixed, cryptocurrency fees are dynamic and can significantly impact the cost and speed of transactions. Primarily, these fees serve to incentivize network participants (miners or validators) who process and secure transactions on the blockchain. Without these rewards, there would be no incentive for them to dedicate computational power or stake assets, ensuring the integrity of the network.

The most common type of fee is a transaction fee or gas fee, prevalent in networks like Ethereum. This fee compensates the network for the computational resources used to execute a transaction or smart contract.