#CryptoFees101 ✅

Crypto fees are small payments required to execute transactions on a blockchain. These fees reward miners or validators who process and secure those transactions.

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⚙️ 2. Main types of fees

a) Gas Fee

• Applicable on networks like Ethereum.

• The more complex the operation (for example, using smart contracts), the more gas you consume.

• Paid in the native currency (e.g., ETH on Ethereum).

📌 Example: Sending USDC on Ethereum can cost between $2 and $50 depending on network congestion.

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b) Transaction Fee

• Common on blockchains like Bitcoin, Litecoin, Solana, etc.

• Pay to include your transaction in the next block.

📌 Example: Sending BTC can cost from a few cents to several dollars, depending on the network.

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c) Exchange Fee

• Paid when using exchanges like Binance, Coinbase, Kraken, etc.

• Types:

• Maker (for placing orders on the book)

• Taker (for taking existing orders)

• Can vary between 0.1% and 1% per transaction.

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d) Withdrawal Fee

• Charged by the exchange when sending funds to an external wallet.

• Can be fixed or variable, depending on the token.

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e) Bridge Fee

• If you move funds from one blockchain to another (e.g., Ethereum to Polygon), you may pay a fee for the “bridge.”

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📉 3. Why do fees vary?

• Network congestion: Many transactions = higher prices.

• Transaction size: More data or complexity = higher cost.

• Specific blockchain: Some are cheaper by design (e.g., Solana, Polygon, Avalanche).