#USChinaTradeTalks #CryptoFees101
When using digital currencies like Bitcoin or Ethereum, you often encounter something known as "fees". These fees are not arbitrary; they play an important role in operating the network and incentivizing its participants. Here's a quick look at what you need to know:
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What are digital currency fees?
Digital currency fees are small amounts paid when sending or executing a transaction on the blockchain network. Fees vary by currency, network activity, and type of transaction.
š Why are fees charged?
1. Compensate miners or validators who process transactions.
2. Prevent spam or attacks by reducing unnecessary transactions.
3. Improve execution speed ā the higher the fee, the greater the priority of the transaction.
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