Understanding Crypto Fees: A Beginner-Friendly Guide

One of the most common questions among new cryptocurrency users is: why do I have to pay a fee when sending or receiving crypto? Understanding crypto fees can help you avoid surprises and better plan your transactions if you’re just starting your journey with Bitcoin or Ethereum. Coinsdrom explains crypto fees, how they work, and why they vary.

Coinsdrom works with people who want to buy or sell cryptocurrency without managing portfolios or participating in complex ecosystems. That’s why we believe it’s important to explain how fees work in plain language.

What Are Crypto Fees?

When you send or receive cryptocurrency, you usually pay a small additional amount to process the transaction. This is known as a network fee, and it goes directly to the network of people (or machines) that keep the blockchain running.

Coinsdrom does not set or collect these network fees—they are part of the blockchain protocol. Whether you buy crypto through Coinsdrom or send it from your wallet, network fees are required by design.

Why Do Network Fees Exist?

Cryptocurrencies operate on decentralized networks, unlike banks or apps that use central servers. Every transaction has to be validated and recorded by others on the network. These participants are miners (in Bitcoin) or validators (in Ethereum).

They provide computing power to maintain the network, and the fee you pay is their compensation for that work. Without it, the system wouldn’t function.

How Are Fees Calculated?

Crypto fees are not fixed—they depend on several factors:

Network Traffic

The more people use the blockchain simultaneously, the higher the fees. It’s like rush hour: everyone wants their transaction processed, so fees rise with demand.

Transaction Size

Larger or more complex transactions (such as sending to multiple recipients) may require more data, which leads to slightly higher fees.

Speed Preference

Some wallets allow you to choose how fast your transaction gets confirmed. Paying a higher fee usually means your transaction is picked up faster. Paying less might mean waiting longer.

Blockchain Type

Fees vary by network. For example:

• Bitcoin transactions might cost a few euros, especially during busy periods.
• Ethereum transactions (“gas fees”) can fluctuate greatly, particularly if there’s activity from NFT or DeFi projects.
• Coinsdrom currently offers only Bitcoin and Ethereum exchange, so you’ll see network fees related to those two.

Who Sets the Fees?

Coinsdrom or any single company doesn’t set the fee—it’s determined by the blockchain you’re using. When you send crypto, your wallet calculates the cost based on network conditions. Coinsdrom always informs you about the expected network fee before confirming the transaction.

Do All Transactions Have a Fee?

Almost all crypto transactions include a network fee, but the exact amount can vary. Even if you’re only exchanging €50 worth of Bitcoin, the blockchain still requires a fee to process it.

That’s why Coinsdrom emphasizes transparency. We don’t hold your funds or charge hidden withdrawal fees. You only see:

• The amount of crypto you’re buying or selling
• The real-time network fee based on current conditions

Tips to Avoid Unexpected Costs

If you’re new to crypto, here are a few practical tips:

• Check the fee before confirming any transaction.
• Avoid peak hours on the blockchain if you’re not in a rush—fees are usually lower during off-peak times.
• Use trusted platforms like Coinsdrom that clearly display all costs upfront.

Final Thoughts

Crypto fees are part of how blockchains operate—they’re not hidden charges or commissions but essential to keeping the system running. At Coinsdrom, we keep your experience simple by focusing on direct exchanges with no deposits or stored balances and always showing the applicable network fee before you finalize your transaction.

Knowing how fees work will make the process smoother, whether you’re buying Bitcoin or Ethereum with your credit card or selling crypto you already own. Coinsdrom is here to ensure your first crypto experience starts with clarity, not confusion.

Sameer is a writer, entrepreneur and investor. He is passionate about inspiring entrepreneurs and women in business, telling great startup stories, providing readers with actionable insights on startup fundraising, startup marketing and startup non-obviousnesses and generally ranting on things that he thinks should be ranting about all while hoping to impress upon them to bet on themselves (as entrepreneurs) and bet on others (as investors or potential board members or executives or managers) who are really betting on themselves but need the motivation of someone else’s endorsement to get there.