As cryptocurrencies become more widespread, some of their aspects remain confusing. One of such aspects is the transaction fees. Most of the cryptos are hailed as having lower transaction fees, however, this might not be the case when the network is crowded.
Here is a simple guide on the lowest transaction fee cryptocurrency.
What is a crypto transaction fee?
A transaction fee is an amount the user pays to transfer a token from one account to another. Every crypto transaction is recorded on the blockchain, and the transaction fee is included. The fee also helps in securing the network as it is used to pay the miners. These are the nodes that verify and confirm transactions.
The transaction fee varies in various cryptos depending on multiple issues.
Types of transaction fees
Most crypto holders only know the transaction that operates as a commission when they transact. In the real sense, there are various transaction fees, such as:
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Network fee
This is the fee charged as an incentive for the network miners. It is a reward for the miners to ensure the continuity of the network by releasing new tokens to supply and for security by verifying transactions.
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Exchange fees
Exchange fees are the ones that apply when you buy or sell cryptocurrencies. The different crypto exchanges offer varying transaction fees. Understand the specific exchange rates before you sign up for trading.
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Wallet fees
The wallet where you store your tokens can also charge some fees. These fees mostly go towards the system and software upgrade for assured security.
Cryptocurrencies with the lowest transaction fees
The transaction fees reduce the value of your assets. With the high costs, you might end up having less money than intended. You should aim for the cheapest transaction fees for cryptocurrency to ease the burden.
Some of the options to choose from include:
TRON
TRON crypto charges an average crypto transaction fee of $0.0000901. Given the coin’s functionality due to its high scalability and high throughput, the low transaction fees is a welcome aspect. The coin likely has these low transaction fees as it does not rely on mining.
Litecoin
Litecoin is one of the easiest coins to mine. This translates to the transaction fees that are also some of the lowest.
EOS
Even though it is one of the most useful cryptos, it costs quite a little to transact in EOS. This is mostly due to its use cases. Unlike other cryptos, it does not operate as a medium of exchange. Instead, it offers a platform to develop decentralised applications (Dapps). Generally, it doesn’t cost anything to transact on the platform.
Ethereum Classic
Even though it is one of the top valuable cryptos, Ethereum classic comes with some of the lowest transaction fees. The fees run from as low as $0.00023.
Bitcoin Cash
Bitcoin Cash is another top valuable crypto that comes with some of the lowest transaction fees. The current transaction fee is around $0.28. This cannot compare to its value at $682.29.
XRP
Ripple is one of the most useful cryptos when it comes to transactions. Most people prefer it due to its integration of multiple payment platforms. Better still, it comes with low transaction fees of around $0.00001.
To learn more about various cryptocurrencies, you can check out our 101 guides here.