What are Network Fees in Blockchain and their significance in trading?
Leading blockchains are open source and therefore require participation from the community to strive.
Without miners or validators, depending on the consensus style chosen, the respective network wouldn't be of any use.
A distributed community of miners and validators commit their resources for rewards regularly disbursed by the network.
For any transaction to be validated and value moved, the sender incurs a 'network fee.' All these fees are bundled up in a block and rewarded to the successful validator or miner together with block rewards.
Depending on the blockchain, network fees can be negligible or denting. Often, the amount paid depends on network scalability and activity.
Therefore, a trader may realize that sending ETH costs at least $5—or $69 while transacting the exact USD amount in BNB may only cost a couple of cents.
Network fees are blockchain-specific. Senders often cater for this fee, regardless of the exchange used.
CryptoAltum doesn't charge any deposit or withdrawal fees. Users who opt to buy Bitcoin via Instacoins are even reimbursed for fees incurred via trading credit.
For more interesting tips and facts visit our Education Centre.
We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!
This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.
CryptoAltum does not accept any clients under the age of 18.