#CryptoFees101

Crypto Fees Explained: What You’re Really Paying For

So, you’re making a trade, sending some Bitcoin, or swapping tokens on a DeFi platform — and then you see it:

“Network Fee: 0.0005 BTC”

Wait, what? Why are you paying to move your money?

Welcome to the world of crypto fees — an essential (but often misunderstood) part of the blockchain ecosystem.

This article will explain what crypto fees are, why they exist, and how to minimize them.

What Are Crypto Fees?

Crypto fees are the costs paid to process your transaction on a blockchain network or trading platform.

These fees vary based on the network you're using, the method of transfer, and the platform involved.

There are 3 main types of crypto fees:

1. Network Fees (Gas Fees)

These are fees paid directly to blockchain validators or miners.

Bitcoin: Paid to miners who confirm your BTC transaction

Ethereum: Known as gas, used to pay for executing smart contracts or swaps

Solana, Polygon, BNB Chain: Typically lower fees compared to Ethereum.

💱 2. Exchange Fees (Trading Fees)

These are charged by centralized exchanges (CEXs) like Binance, Coinbase, or Kraken for every buy/sell order.

Maker: Adds liquidity to the market (usually lower fee)

Taker: Removes liquidity (usually higher fee)

🌐 3. DeFi Fees

When using decentralized exchanges (DEXs) like Uniswap or PancakeSwap, you pay:

Swap fees to the protocol (often ~0.3%)

Gas fees to execute the transaction

Sometimes router/multihop fees if swapping through multiple tokens.