Networks, Gas, and Fees
How transaction fees work, why they change, and how to avoid losing funds by sending on the wrong network.
Updated Oct 22, 2026
Why fees exist
Every transaction is processed by the network's or , and a fee pays them for including it. When lots of people are transacting at once, fees rise. When it's quiet, they fall.
- Fees are based on how much work a transaction takes (its size, or the it uses), not on how much money you send.
How this works on Bitcoin, Ethereum, Cardano, Solana, TRON, XRP, Stellar
- Bitcoin
Fee depends on transaction size in bytes and how busy the network is.
More on Bitcoin - Ethereum
Fee = gas used × gas price. Token transfers use more gas than plain ETH sends.
More on Ethereum - Cardano
Small and predictable, based on size, and shown before you sign.
More on Cardano - Solana, TRON, XRP, Stellar
Usually fractions of a cent to a few cents.
Layer 1 and Layer 2
A is a base chain, like Bitcoin, Ethereum, Solana, or Cardano. A runs on top of one for cheaper, faster transactions, like Base, Arbitrum, and Optimism on Ethereum, or Lightning on Bitcoin.
On Ethereum L2s your address can look identical to your L1 address, but the funds are on a different network.
Picking the right network
When you withdraw from an exchange, it often asks which network to use. The sender and receiver must be on the same network.
Sending on the wrong network can mean the funds never arrive, or can only be recovered with lots of effort, or not at all. Before sending, confirm the coin AND the network match what the receiver asked for.
Before you hit Send
- Check the coin and the network.
- Check the first and last 4-6 characters of the address.
- For a large amount, send a small test first.
- Leave enough native coin for the fee.
Key takeaways
- Fees go to the network, not to Crypto Barter.
- Same coin + same network on both ends, every time.
- Test with a small amount when it matters.
Related coin guides
Educational use only. Not financial advice. Always do your own research.