#CryptoFees101 A $500,000 Lesson in Crypto Fees 🤯

Imagine accidentally paying half a million dollars for a single transaction. It sounds unbelievable, but in September 2023, it happened. A user mistakenly paid a fee worth around $500,000—over 300 $ETH at the time—for a single transaction. This real-life story is a powerful reminder of why understanding crypto fees is absolutely essential.

What Are Transaction Fees? 🤔

On blockchain networks, transaction fees (often called "gas" on Ethereum) are small payments made to network validators or miners. They serve two crucial functions:

Incentivizing Validators: Fees reward them for processing transactions and securing the network.

Preventing Spam: They make it costly for malicious actors to flood the network with useless transactions.