#CryptoFees101 Sure! Here’s a simple and clear breakdown of crypto fees (Crypto Fees 101):

---

🔹 What Are Crypto Fees?

Crypto fees are the costs paid when making transactions or using services on a blockchain or crypto platform. These fees usually go to miners or validators who process and secure transactions.

---

🔹 Types of Crypto Fees

1. Network (Blockchain) Fees

Also called: Gas fees, transaction fees.

Paid to: Miners (Proof of Work) or validators (Proof of Stake).

Why: To process and confirm your transaction on a blockchain.

Examples:

Ethereum gas fee for sending ETH or using a smart contract.

Bitcoin transaction fee for sending BTC.

✅ Tip: Higher fees = faster processing (especially on congested networks).

---

2. Exchange Fees

Where: Centralized exchanges like Binance, Coinbase, Kraken.

Types:

Trading fees (maker/taker fees): For buying/selling crypto.

Deposit/withdrawal fees: For moving crypto or fiat in/out.

Typical range: 0.1% – 1.0% per trade, varies by platform and volume.

✅ Tip: Many exchanges offer lower fees for high-volume traders or users who hold their native tokens.

---

3. Wallet Fees

Custodial wallets (e.g., Coinbase Wallet): May charge for withdrawals.

Non-custodial wallets (e.g., MetaMask): Only charge network fees, not wallet fees themselves.

✅ Tip: Always review estimated fees before confirming a wallet transaction.

---

4. Smart Contract Fees

For DeFi, NFTs, swaps, etc.

These are often higher than regular transfers because smart contracts require more computational work.

Example: Swapping tokens on Uniswap involves gas fees for interacting with the contract.

---

🔹 Why Fees Vary

Network congestion: More traffic = higher gas fees.

Transaction complexity: Simple transfers are cheaper than complex contract interactions.

Token standards: ERC-20 tokens on Ethereum cost more to transfer than native ETH