#CryptoFees101 Commission fees in cryptocurrencies (known as "fees" or "cards") are the price paid for a transaction to be recorded on the blockchain. These fees are used to reward miners or validators who maintain the network and process transactions. Essentially, they are like a "tip" to ensure that the transaction is included in the block and confirmed.

Why do fees exist?

Network security:

Fees help keep the blockchain network secure, as miners or validators are incentivized to include transactions and ensure the integrity of the network.

Decentralization:

Fees allow the digital payment system of cryptocurrencies to be decentralized, without relying on central banks or intermediaries.

Preventing spam:

Fees help prevent the network from being saturated with irrelevant transactions or spam.

Types of fees:

Network fees (Fee or Gas):

These are the fees paid to miners or validators for processing the transaction on the blockchain.

Exchange fees (interchange fees):

If credit or debit cards are used to make transactions with cryptocurrencies, interchange fees may also apply from payment processors.

Trading fees:

Exchange platforms may charge fees for executing buy, sell, or exchange operations of cryptocurrencies. $BNB