Examining Transaction Fees Across Digital Platforms
- Landon
- May 8
- 3 min read
Updated: Jun 7
Separating the fees into two categories
Transaction fees are very hard to avoid when trading crypto and transferring it to different accounts because you must use a service in order to do that. These fees can be very annoying, but observing different platforms can help a user choose what is best for them, and today we will be going through some of the biggest names and how they charge users. There are two different types of fees in crypto, and they are platform fees and network fees. Platform fees are charged by the company themselves, and charge you for the purchase, sell, or storage of your crypto asset. Platform fees are usually a percentage of the trade or difference between the market price and the price of your asset. Network fees are fees paid to the blockchain, and are non-negotiable transactions that go to the people who run the crypto network. The fees in the network fluctuate everyday, depending on how many people are running the network and which assets you own.
Platform Fees
Each big name platform does transaction fees differently, usually based on taking off of percentage or set amount. Cashapp and Coinbase take a percentage based fee. Cashapp’s percentage on a transaction will decrease as the transaction size gets higher, encouraging the users to make bigger transactions. The fee is completely transparent and super easy to use, making it accessible to get Bitcoin in seconds. Coinbase is very similar and uses a mix of platform and network fees. They also charge depending on the transaction type, but since they include network fees it will depend on which asset you are trading/depositing. CoinLedger operates completely differently than the other two platforms, and acts as a wallet for all of your digital assets. It is primarily focused on tax savings, so there are no “trading fees”. You will also have to pay standard network fees on the coin because that depends on the asset itself.
Network Fees
Network fees are fees that are designated to the blockchain itself, so there is no set amount for each coin. Bitcoin charges based on the byte size of your transaction, so percentages vary. You must also take into account that earlier we talked about the network fees depending on how busy a server is. Sometimes more people work on a server than another day, and network fees will spike because of it. Ethereum uses what's called “Gas Fees”. These fees are usually higher than the rest because they require more energy to ensure your operations on the blockchain. These higher fees make your experience more secure, but require more energy and work from the network. XRP is different from Bitcoin and Ethereum because it is designed to be traded with speed. Since these transactions are built for their quickness, they only take a fraction of a penny per transaction. As of May 6th, 2026, XRP is worth $1.42.
Platform & network fees vs. bank fees
The biggest difference you are going to see between the previous fees and bank fees are transparency. Banks are tricky when it comes to fees, because you have to go through hoops and holes when transferring money internationally and when transferring high amounts of currency. International fees can cost anywhere from 2-7 percent, depending on the bank, and they wait till the very last confirmation to let you know about it. With a network fee, it is completely transparent and also way cheaper. For a large transfer like $10,000 dollars, the fees from the network and bank would be very different. Although completely hypothetical, the network fee could be anywhere from 5-25 dollars while the bank will charge 200-350 dollars. When making high volume transfers consistently, it is important to account this expenses over time to see how much money a consumer could save in the long run.
Another valuable difference between the two is time. We have all heard the phrase “time is money”, and it truly applies to this. Banks tend to take much longer on transactions, and depending on when you trigger the transaction it can take up to three business days. There are options for instant transfers, but the bank charges a percentage for it, taking even more of what you earned. With network fees, it is a completely different ballpark. Since the network runs 24/7, you automatically receive your funds within the second, making it a much easier process for consumers who need the money quickly. And since you are paying that network fee, you do not have to worry about an instant transfer fee because it is the network's job to get you your funds quickly.
May 8, 2026
