#CryptoFees101 Crypto Fees 101 – Basics of Cryptocurrency Fees

1. What are fees?

These are the costs you incur when:

• Sending cryptocurrencies (e.g., transferring BTC, ETH)

• Trading on exchanges (buying/selling)

• Using DeFi and DEX services (e.g., token swaps)

• Creating smart contracts

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2. Main types of fees:

Network / Transaction Fee

• Paid to miners or validators who confirm transactions on the blockchain.

• Depends on the network and load (e.g., Ethereum can be expensive during high traffic periods).

• Example: fee for sending ETH or USDT to an address.

Trading Fee

• Charged by exchanges for executing orders.

• Can be fixed or percentage-based (e.g., 0.1% of the transaction value).

• Sometimes lower when using the exchange's native token (e.g., BNB on Binance).

Withdrawal Fee

• Fee for withdrawing crypto from the exchange to your own wallet.

• Varies depending on the token and exchange.

Gas Fee

• Specific to blockchains like Ethereum.

• Fee for performing operations on a smart contract (e.g., swapping tokens on Uniswap).