#CryptoFees101
CryptoFees
* What are fees? They are small amounts paid to execute transactions on the blockchain network or on trading platforms.
* Why do they exist? These fees compensate "miners" or "validators" who confirm transactions and secure the network.
* Types of fees: There are network fees (paid to miners) and platform fees (paid to the platform you use for trading).
* How are network fees determined? They are influenced by demand on the network: the more people conducting transactions, the higher the fees due to congestion.
* Transaction size: Generally, larger transactions (measured in kilobytes, not value) take up more space on the blockchain, which may increase the fees.
* Transaction speed: You can often choose to pay higher fees to have your transaction processed faster, especially during peak times.
* Different currencies: Each cryptocurrency (like Bitcoin or Ethereum) has its own fee structure; for example, Ethereum uses a "gas" system.
* Platform fees: These fees can vary significantly among trading platforms (like Binance or Coinbase) and may be either a percentage or a fixed amount.
* How to reduce fees? Try to conduct transactions during off-peak times, or use coins with lower fees, or take advantage of platform promotions.
* Awareness and research: Understanding how these fees work and comparing them across networks and platforms will help you save money.
