What are Bitcoin network (transaction) fees?
Quick Answer
Network fees are small payments to miners for confirming your Bitcoin transaction. They rise when the network is busy and fall when it's quiet, and they're separate from any fee your exchange charges.
TL;DR
Fees paid to miners to confirm transactions; higher when the network is busy. Separate from exchange fees. Lightning makes them tiny.
Key Takeaways
- 1Fees go to miners for confirming transactions
- 2They rise when the network is congested
- 3They're separate from exchange trading fees
- 4Lightning Network enables very low-fee payments
Full Explanation
When you send Bitcoin on-chain, you pay a network fee that goes to miners for including and confirming your transaction. This fee is set by supply and demand for block space — when lots of people are transacting, fees go up; when it's quiet, they drop.
Importantly, the network fee is separate from any fee your exchange charges to buy or withdraw. For small, frequent payments, the Lightning Network lets you transact with very low fees. Most wallets estimate the fee for you and let you choose faster (higher) or cheaper (slower) options.
This is educational information. To reduce fees, you can transact when the network is less busy or use Lightning for small amounts.