#CryptoFees101 Cryptocurrency fees (known as "fees" or "cards") are the price paid to have a transaction 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 flooded with irrelevant transactions or spam.
Types of fees:
Network fees (Fee or Gas):
These are the fees paid to miners or validators to process the transaction on the blockchain.
Exchange fees (interchange fees):
If credit or debit cards are used to conduct transactions with cryptocurrencies, interchange fees may also be charged by payment processors.
Trading fees:
Exchange platforms may charge fees for executing buy, sell, or exchange operations of cryptocurrencies.
