Comparing Crypto Transaction Fees

Cryptocurrency fees are processing fees built into the networks. They’re akin to a sales tax to fuel the economy and pay for the services provided. In addition, third-party services like exchanges, apps and ATMs charge their own fees.  Crypto transaction fees usually vary based on network traffic. The more transactions on the network, the higher the fees. For example, Bitcoin’s highest average daily fees for the year came when the market was heated with heavy trading and high prices. Since we view crypto as the future of money, we wanted to do some analysis comparing crypto transaction fees from some well-known platforms, including “old skool” credit cards…

Credit Card Transaction Fees

Every time a customer makes a purchase with a credit card, businesses are required to pay fees to accept credit as payment. Typical credit card processing fees range from 1.3% to 3.5%. In addition, payment processors take a cut, which varies depending on the processor and their plans. American Express charges the highest fees, while Visa tends to charge the lowest. Note the correlation to the transaction amount, which contrasts with how cryptocurrencies charge.

Bitcoin Transaction Fees

According to bitinfocharts, the average transaction fee on the Bitcoin network for 2021 was $1.96, ranging between $1.50 and almost $63. With BTC, you can pay a minimal fee or customize it. Smaller transactions are easier to process. To maximize their ROI, miners seek the best combinations of transaction size and fees.

Dogecoin Transaction Fees

The average Dogecoin fee for 2021 was $0.339, ranging from $0.01 and $2.52.

Ethereum Transaction Fees

The average Ethereum fee was $23.36, ranging between $1.50 and $70 in 2021. Ethereum has a base fee, and users can add a “priority fee” to incentivize miners to process a transaction sooner.

Monero Transaction Fees

Monero fees for 2021 ranged from $0.02 to $0.33. Monero transaction fees increase based on the “priority” of the transaction. A higher priority increases the fee as it competes with other transactions to become part of the next block on the blockchain.

Dash Transaction Fees

As we have explained before, Dash is a highly efficient transaction cryptocurrency. The average Dash transaction fee for 2021 was a mere $0.0083, ranging from 1.1m to a “whopping” $0.038.

We hope you find this data useful. The transaction fees of any given cryptocurrency are, in many ways, comparable to a sales tax. Fees act as the fuel that powers the network and pays for services like security and support. If you’re looking for a way to save money on transaction fees, this information might help guide your decision. Check out our website and see what masternodes contribute to the efficiency of Dash!