#CryptoFees101

Types of Fees in Cryptocurrency:

1. Network Fees (Gas Fees):

Paid to miners or validators to process transactions.

Varies based on network congestion.

Example: "Gas" fees on Ethereum are paid in ETH.

2. Exchange Fees:

Trading Fees: A percentage taken when buying or selling.

Maker: Adds liquidity (cheaper).

Taker: Removes liquidity (more expensive).

Withdrawal Fees: Paid when transferring currencies from the platform to your wallet.

3. Wallet Fees:

Software wallets are usually free.

Hardware wallets (like Ledger) require only an initial purchase.

Some centralized wallets may charge a commission on transactions.

4. DeFi Fees:

Fees when using applications like Uniswap or Aave.

Includes network fees + a commission for the protocol or liquidity providers.

5. Bridging Fees:

When transferring currencies between different networks.

Includes fees on both networks + bridge service fees.

6. Hidden or Additional Fees:

Slippage: The difference between the expected price and the actual execution.

Fees for converting to traditional currencies.

Fees on staking profits on some platforms.

✅ Tips to Reduce Fees:

Use cheaper networks (like Arbitrum or Solana).

Monitor network congestion before the transaction.

Choose platforms with low fees.

Batch transactions to reduce the number of transactions.