#CryptoFees101

Cryptocurrency Fees

Why are these fees imposed? What types are there? What affects them? How can you reduce the fees? This is what I will address in this post in a nutshell ✅

First, fees are imposed to protect the network, prevent overload (reducing the sending of unimportant transactions), and priority (the more you pay in fees, the faster your request will be processed).

Second, types of fees include transfer fees, trading fees, futures fees, and network fees.

Third, factors affecting the fees include congestion, execution speed, type of network, and the complexity of the transaction.

Fourth, ways to reduce fees include choosing the right time (fees decrease with reduced activity), using layer 2 networks, and manually adjusting fees (some wallets allow for fee reduction, but the transaction will undoubtedly become slower).