#CryptoFees101 Here's a concise 100-word overview of cryptocurrency fees:
Crypto Fees 101
Cryptocurrency fees fall into two main categories: exchange fees and blockchain fees. Exchange fees include:
Trading fees (0.1%–4% per trade), comprising order fees and hidden "spreads" between buy/sell prices .
Deposit/withdrawal fees for fiat or crypto transfers (e.g., Kraken charges for both, Coinbase up to 4% for card deposits) .
Staking fees (15%–25% of rewards on platforms like Coinbase/Kraken) .
Blockchain fees (on-chain transaction costs) vary by network demand:
Bitcoin fees ranged from $3–$63 in 2024 .
Ethereum "gas fees" fund transaction processing .
Off-chain solutions (e.g., Lightning Network) reduce costs but require security trade-offs .
Always check fee structures to avoid hidden costs eroding profits!