#CryptoFees101

💸 What Are Crypto Fees?

Crypto fees are small amounts of crypto paid to process a transaction on the blockchain. Think of them like a toll fee for using a digital highway.

🧮 Types of Crypto Fees

1. Network Fees (aka Gas Fees):

• Paid to miners or validators.

• Based on network congestion and transaction size.

• Common in blockchains like Ethereum, Bitcoin, and Polygon.

2. Exchange Fees:

• Charged by platforms like Binance, Coinbase, or Kraken.

• Can include:

• Trading fees (for buying/selling crypto)

• Withdrawal fees (for moving crypto out)

• Deposit fees (less common)

3. Wallet Fees:

• Some wallets charge to send crypto.

• Self-custody wallets usually just pass on the network fee.

⛽️ Ethereum Gas Fees Example

• Gas is the unit for measuring computational effort.

• More complex actions (like minting NFTs or DeFi transactions) = higher gas.

• Fees are paid in ETH.

🧠 Pro Tip: Use sites like Etherscan Gas Tracker to see live gas prices.

🤔 Why Do Fees Vary?

• Network Demand: More users = higher fees.

• Blockchain Design: Some chains (e.g., Solana, Avalanche) are designed for lower fees.

• Transaction Speed: Want faster processing? Pay more.

🛠️ How to Reduce Crypto Fees

1. Use Layer 2s like Arbitrum or Optimism (cheaper alternatives to Ethereum mainnet).

2. Batch transactions when possible.

3. Trade during low network activity (early mornings or weekends).

4. Compare exchanges for the lowest fees.

🔐 Bonus Tip: Avoid Overpaying

Always review the fee before confirming a transaction. Some wallets let you choose:

• Low (slower but cheaper)

• Standard

• High (fast but expensive)