#CryptoFees101

🚀 Crypto Fees 101: Understanding the Basics

Whether you're trading, sending, or using DeFi, crypto fees are an unavoidable part of the ecosystem. Here’s what you need to know:

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🔹 1. Network (Gas) Fees

What it is: Paid to blockchain validators/miners to process and confirm transactions.

Where it applies: Sending tokens, interacting with smart contracts (e.g., swaps, staking).

Varies by network:

Ethereum (ETH): Can be expensive, especially during congestion.

Bitcoin (BTC): Fees depend on transaction size (in bytes) and network activity.

Layer 2s (e.g., Arbitrum, Optimism): Much cheaper than Layer 1.

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🔹 2. Exchange Fees

What it is: Charged by centralized (CEX) or decentralized (DEX) exchanges for trades.

Types:

Maker Fee: For placing limit orders (adds liquidity).

Taker Fee: For market orders (removes liquidity).

Examples:

Binance: ~0.1% per trade (discounts with BNB).

Uniswap: ~0.3% swap fee (goes to liquidity providers).

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🔹 3. Withdrawal Fees

What it is: Charged by CEXs to withdraw crypto to your wallet.

Why it matters: Can be fixed or dynamic depending on the asset and network congestion.