Transaction Fees

Protocols cost money to run. People buy computers and use them to run the network. The computers they run use a lot of electricity. All of this costs a lot of money. People who do this are called miners.

Miners do not do this for fun. They do this to make money. When you send money through they network they take a fee. This cost can vary depending on how many other people want to send money and how much they are willing to pay.

Exchange Fees

Exchanges cost money to run. People set up companies or protocols to make it possible for other people to exchange one form of value for another. They spend huge sums of money on engineers' salaries. People who do this are called entrepreneurs.

Entrepeneurs do not do this for fun. They do this to make money. When you exchange one form of value for another they take a fee. This cost can vary depending on how good the exchange is and how many other people want to make the same trade.

Did this answer your question?