#CryptoFees101 đ¸ Crypto Fees : What Are You Really Paying For?
When you buy, sell, or move crypto, youâll likely run into fees â and they can add up. Hereâs a breakdown of the most common ones so youâre not caught off guard.
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đ 1. Exchange Fees
When using platforms like Binance, Coinbase, or Kraken:
Trading Fees: Charged when you buy/sell crypto.
⸠Usually 0.1%â1% per trade, depending on your account level.
⸠Some platforms charge more for credit/debit card purchases.
Spread: Some platforms mark up the price slightly â especially with instant buys.
⸠It's a hidden fee, often 0.5%â2%.
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đ 2. Network (Blockchain) Fees
These go to the miners or validators, not the exchange:
Bitcoin & Ethereum: Known for high network fees during congestion.
⸠ETH fees can spike during busy periods (known as gas fees).
⸠Example: $10â$50+ per transaction at peak times.
Other chains (Solana, Polygon, etc.): Much lower fees â sometimes just fractions of a cent.
đĄ Tip: Use Layer 2s like Arbitrum or Optimism to reduce gas fees on Ethereum.
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đŚ 3. Withdrawal Fees
When moving crypto off an exchange to your own wallet:
Fixed per coin (e.g., 0.0005 BTC to withdraw Bitcoin)
Can be much higher than network fees, especially on centralized exchanges.
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đ 4. Wallet Fees
Most wallets are free, but some charge small fees for swaps or integrations.
Self-custody wallets (like MetaMask) may include gas fees + provider service fees (0.3%â1%).
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đ§ Final Tips
â Compare platforms before trading
â Avoid transacting during peak hours
â Learn about Layer 2 solutions
â Be mindful of small transactions â fees can eat your balance!