#CryptoFees101

When using digital currencies like Bitcoin or Ethereum, you often encounter something known as "fees". These fees are not arbitrary; they play an important role in operating the network and incentivizing its participants. Here’s a quick overview of the key things to know:

✅ What are digital currency fees?

Digital currency fees are small amounts paid when sending or executing a transaction on a blockchain network. Fees vary depending on the currency, activity on the network, and type of transaction.

🔍 Why are fees imposed?

1. Compensate miners or validators who process transactions.

2. Prevent spam or attacks by reducing unnecessary transactions.

3. Improve execution speed – the higher the fees, the greater the priority of the transaction.

💡 Types of fees:

Transaction Fees: Paid to include the transaction in the blockchain.

Network Fees: A general term referring to the fees paid to operate the network.

Gas Fees: In Ethereum, these fees are used to execute smart contracts and decentralized applications (DApps).

📊 Can fees be reduced?

Yes! Some methods include:

Using times of low activity on the network.

Choosing faster and cheaper networks like Polygon or Solana.

Using wallets that allow manual adjustment of fees.