What is transaction cost or fees ?

Today we’re going to Discuss about What is transaction cost or fees ?

Although crypto does not have a central bank or government, you still need to pay a transaction fee to transfer these coins.

Blockchains such as Bitcoin (BTC) have built-in “network fees” that go to BTC miners. Since Bitcoin is a decentralized network, these crypto fees incentivize more people to use their computing power to validate BTC transactions. The higher the hash power is on the Bitcoin blockchain, the more resilient it is against hacks. 

Many other blockchains, such as Ethereum (ETH), charge transaction costs known as “gas fees”. Similar to Bitcoin’s network fee, this gas payment goes to node operators who confirm transactions on Ethereum’s blockchain.

Individuals also have to pay transaction fees when using centralized crypto exchanges (CExs). CEXs provide a centralized hub for buying and selling digital assets like stock brokerage websites. Each CEX has a different fee structure, but most charge commissions as well as withdrawal and deposit fees.