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Transaction Fees

Transaction Fees

Transaction fees are associated with every crypto transaction and are paid to the miner or staker who successfully verifies it and adds it to the blockchain. Transaction fees, also known as “miner fees”, are usually paid in the same cryptocurrency being used for the transaction and are charged in addition to the base transaction amount.

Crypto transaction fees are typically small when compared to the amount being sent, but the fee may differ depending on several factors. The amount of crypto transaction fees depends on several factors, such as the type of cryptocurrency being used, the amount of data being sent in the transaction, and the current demand on the Ethereum or Bitcoin blockchain networks. 

Transaction fees play an essential role in securing blockchain networks. Miners compete to be the first to verify a block and add it to the blockchain network; they are then rewarded with newly-minted coins and transaction fees. For Ethereum, stakers use their funds to stake them for validating transactions without competition.

In general, transactions with higher transaction fees are given priority as miners will work on them first before others. If you’re looking for a quick confirmation for your transaction, setting a high custom fee is recommended, but be wary as setting too high of a fee could result in a much higher cost of your transaction. 

You can always check average recommended fees on blockchain websites which will give you an approximate fee for your transaction.