#CryptoFees101

⛽ 2. Blockchain (Network) Fees

• Gas Fees (e.g., Ethereum): Paid to miners/validators to process transactions; rises with network congestion.

• 💡 Save by: Transacting during off-peak times or using L2s (e.g., Arbitrum, Optimism).

• Proof‑of‑Stake Fees (e.g., Solana, Cardano): Fixed small fees per transaction.

• Generally cheaper and more predictable.

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🏦 3. Wallet & On‑Ramp Fees

• Wallet Spreads: Indirect fees embedded in exchange rates.

• Custodial Wallet Fees: Some wallets charge for sending crypto.

• 💡 Tip: Compare rates across wallets when sending larger amounts.

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🔁 4. Conversion & Slippage

• Hidden in fast-moving markets — price changes between order placement and execution.

• 💡 Tip: Use limit orders or trade during high-liquidity periods to reduce it.

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✔️ 5. Withdrawal vs. On‑Chain Fees

• Exchange Withdrawals: Might include a “convenience” markup over actual network fees.

• 💡 Tip: Compare on‑chain fees to what the exchange is charging.

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💰 6. Staking & Yield‑Platform Fees

• Typically a % cut taken by platforms for staking rewards or lending.

• 💡 Tip: Use native protocol staking when possible, as third‑party providers may take extra fees.

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🧭 Smart Strategies to Minimize Fees

1. Stay Informed: Monitor real‑time gas prices (e.g., via Etherscan).

2. Use Layer‑2 Networks: Drastically reduce gas costs for Ethereum transactions.

3. Pick the Right Exchange: Look for competitive trading and withdrawal rates.

4. Batch Transactions: Combine multiple transfers into one to save on fees.

5. Choose Optimal Timing: Transition during low-network activity (e.g., weekends).