#CryptoFees101 Understanding Crypto Transaction Fees

Whether you're trading, sending, or swapping crypto, fees are an unavoidable part of the process. Knowing how they work can save you money and prevent surprises. Let’s break it down.

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💸 1. Network (Blockchain) Fees

Also known as gas fees or miner fees, these are paid to the network (like Bitcoin or Ethereum) to process your transaction.

On Ethereum, high demand = high fees.

Bitcoin fees depend on congestion and transaction size.

Layer 2 solutions (like Arbitrum or Polygon) offer lower fees than main networks.

Tip: Transact during off-peak hours to reduce fees.

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🏦 2. Exchange Fees

Centralized exchanges (e.g., Binance, Coinbase) charge:

Trading Fees: Usually 0.1%–0.5% per trade.

Withdrawal Fees: Charged when moving crypto out of the exchange.

Deposit Fees: Usually free for crypto, but may apply for fiat.

Always check the fee schedule before using an exchange.

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🔄 3. Swap Fees (DeFi)

Using platforms like Uniswap or PancakeSwap?

You’ll pay:

Liquidity Provider Fee (usually 0.3%).

Gas Fee (to approve and complete the swap).

DeFi fees can stack up quickly, especially on Ethereum.

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📊 4. Hidden Costs

Slippage: Price change during a transaction, especially in low liquidity.

Spread: The gap between buy and sell prices, often overlooked in instant conversions.

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✅ Final Tip:

Always review the total cost before confirming a transaction. A "free" trade might still cost you in network or slippage fees.