Network Fee
Also known as: Gas Fee, Miner Fee
A fee paid to blockchain validators or miners to process and confirm a cryptocurrency transaction.
Plain-English Meaning
Network fees are the cost of using a specific blockchain. When you move crypto from a wallet or an exchange, you pay a small amount of the native token to the computers confirming your transaction.
Why It Matters
Unlike centralized exchange trading fees, network fees fluctuate based on network congestion. High network activity can result in massive spikes in fees, impacting how and when you transfer assets.
Simple Example
Sending Ethereum from your personal wallet to an exchange requires paying a network fee, often called "gas." During peak hours, this gas fee might jump from $2 to $20.
This educational example uses selected assumptions for reference calculation purposes. Real conditions may vary by broker, exchange, or instrument.
Beginner Mistake
Attempting to send small amounts of crypto on expensive networks. Sending $10 of Ethereum when the network fee is $15 results in a net loss before the transfer even completes.