#CryptoFees101
What You Really Pay in Crypto
Ever wonder where your crypto goes during a transaction? Here’s a simple breakdown of the most common crypto fees:
⸻
🔹 Network Fees (Gas Fees)
• Paid to blockchain validators (like miners or stakers).
• Varies by network traffic.
• Example: Ethereum gas fees spike during peak hours.
🔹 Exchange Fees
• Charged by centralized or decentralized exchanges.
• Types:
• Trading Fees: % per trade (e.g., 0.1% on Binance).
• Deposit/Withdrawal Fees: Especially for fiat or cross-chain transfers.
🔹 Wallet Fees
• Some wallets charge for swapping tokens or converting to fiat.
• Always read the fine print!
🔹 Slippage
• Not a “fee” per se, but the difference between expected and executed price.
• Worse with low liquidity or big orders.
🔹 Hidden Costs
• Poor exchange rates.
• Cross-chain bridge fees.
• “Convenience fees” on payment gateways.
⸻
✅ Pro Tips
• Use Layer 2s (e.g., Arbitrum, Polygon) to save on gas.
• Compare fees across exchanges.
• Watch real-time gas prices on tools like Etherscan.
⸻
Want deeper insights? Drop a 🔥 below and I’ll do #CryptoFees102 next.
