#CryptoFees101 a beginner-friendly breakdown of the different fees you might encounter when dealing with cryptocurrency:
💸 #CryptoFees101 – Understanding Crypto Transaction Costs
🔁 1. Network (Gas) Fees
What it is: Paid to blockchain validators/miners for processing transactions.
Varies by network:
Ethereum: Can be high during congestion.
Bitcoin: Depends on mempool activity.
Solana, Polygon, etc.: Usually low and fast.
Tip: Use during low-traffic times or Layer 2 solutions to save fees.
🏦 2. Exchange Fees
Types:
Trading fees: Charged when you buy/sell crypto.
Maker fee: Lower; you add liquidity.
Taker fee: Higher; you remove liquidity.
Withdrawal fees: Charged when moving funds out of the exchange.
Watch out for: Hidden markups in conversion rates.
🔄 3. Swap Fees (DeFi)
Charged when swapping tokens on platforms like Uniswap or PancakeSwap.
Includes:
Liquidity provider (LP) fees.
Protocol fees.
Can be combined with gas fees (especially on Ethereum).
💼 4. Wallet Fees
Some custodial wallets (e.g., PayPal, certain exchanges) charge fees for sending, receiving, or converting crypto.
Non-custodial wallets usually don’t charge, but you still pay network fees.
🌉 5. Bridge Fees
If you’re moving tokens between blockchains (e.g., ETH to BNB), you may pay:
Network fee (on both sides).
Bridge fee (for service).
💡 Tips to Reduce Crypto Fees
Use Layer 2 networks (e.g., Arbitrum, Optimism).
Choose low-fee exchanges.
Bundle transactions when possible.
Avoid peak usage hours (check sites like ethgasstation.info).
✅ Summary
> Crypto fees vary by platform, network, and usage. Understand what you're paying and when to avoid overpaying.