#CryptoFees101 Sure! Here's a primer for #CryptoFees101 โ a simple guide to understanding the fees involved in using cryptocurrencies:
๐ What Are Crypto Fees?
Crypto fees are charges users pay when performing transactions on a blockchain. These fees compensate miners or validators who process and confirm transactions.
๐ธ Types of Crypto Fees
Transaction Fees
Paid to miners (Proof of Work) or validators (Proof of Stake) for confirming transactions.
Example: Sending ETH on Ethereum requires a gas fee.
Gas Fees (Ethereum & EVM Chains)
Measured in gwei (a small unit of ETH).
Gas = computational effort required.
Cost = Gas Limit ร Gas Price.
Exchange Fees
Centralized Exchanges (CEXs): Trading, withdrawal, and deposit fees.
Decentralized Exchanges (DEXs): Usually a % of trade value + gas fees.
Network Congestion Fees
More users = higher demand = higher fees.
