Have you Ever asked yourself, what Happens when you send a Crypto? where are the Transaction fees?

Have You Ever Asked Yourself, What Happens When You Send A Crypto? Where Are The Transaction Fees?

Understanding Transaction Fees in Crypto (The Real Deal!)

🕒 7:01 PM

📅 Apr 22, 2025

✍️ By Banihashim

Whenever you send or receive tokens on a blockchain, you’ll need to pay a transaction fee—and guess what? That fee must be paid in the native cryptocurrency of the blockchain you're using. For example, if you're using Bitcoin, you’ll pay in BTC. If it's Ethereum, then ETH is the way to go.

But why do we even pay transaction fees?

Great question! Here’s the simple breakdown:

1. Speed Matters: Blockchains can only process a limited number of transactions per second. To get your transfer confirmed quickly, you pay a fee—and if you want priority, you might even pay a bit more. Think of it like tipping the waiter to get your food faster!

2. Spam Protection: These fees also keep the blockchain clean. By making spam expensive, they stop bad actors from flooding the network with junk transactions.

So, who gets the fee?

Once you hit "send," your transaction is broadcasted to a network of nodes. These are the computers powering the blockchain. The node that adds your transaction to the blockchain first is rewarded with the fee. That’s their way of saying: "Thanks for the hard work!"

Does the amount you’re sending affect the fee?

Nope! Whether you're sending $10 or $1 million, the transaction fee often stays the same. It’s all about the network congestion and not the amount you’re moving. Wild, right?