#CryptoFees101 *#CryptoFees101* is a beginner’s guide to understanding the different *fees* involved in cryptocurrency transactions and trading.
💸 Common Types of Crypto Fees:
1. *Network/Blockchain Fees (Gas Fees)*
- Paid to miners/validators for processing transactions.
- Varies by network (e.g., *Ethereum gas*, *Bitcoin mining fee*).
- Can be *high during congestion* (ETH) or *very low* (SOL, TRX).
2. *Trading Fees*
- Charged by *CEXs* (Binance, Coinbase) or *DEXs* (Uniswap, PancakeSwap).
- Usually a *percentage of the trade* (e.g., 0.1%–0.5%).
- Some platforms offer fee discounts with native tokens (e.g., BNB on Binance).
3. *Withdrawal Fees*
- Fixed fee for moving assets *off the exchange* to a wallet.
- Varies per token and platform.
4. *Slippage*
- Not a fee but a *price difference* between order time and execution.
- Common in volatile or low-liquidity markets.
5. *Deposit Fees*
- Rare in crypto; most exchanges don’t charge for crypto deposits.
- Fiat deposits (via card or bank) might incur fees.
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🧠 Tips to Minimize Fees:
- Use *layer 2 networks* (e.g., Arbitrum, Optimism).
- Trade during *low network congestion*.
- Choose *low-fee exchanges or DEXs*.
- Use *limit orders* when possible to avoid slippage.