Network Fees

A network fee is the charge for processing a transaction on a blockchain, based on block space and demand, not on the amount sent. It rewards the miners or validators who add transactions to blocks. It matters to buyers because sending crypto on a blockchain costs one, and it is separate from any fee for buying crypto.

How do network fees work?

A network fee pays for adding your transaction to a block. It depends on block space and demand, not on the amount you send.

  • Bitcoin (proof of work): the fee goes to the miner; wallets quote its rate in satoshis per virtual byte, or sat/vB (Bitcoin Core RPC documentation, as of September 2026).
  • Ethereum (proof of stake): the fee is called gas, paid in ETH and quoted in gwei, a billionth of an ETH. The base fee is burned and the validator gets the tip (ethereum.org, as of September 2026).

Block space is limited, so fees rise in busy periods. Transactions with higher fee rates usually confirm first; others wait in the mempool.

What is an example of a network fee?

Illustrative figures: a Bitcoin transaction of 200 virtual bytes pays 1,000 sats at 5 sat/vB, or 4,000 sats at 20 sat/vB, whether it sends 0.01 BTC or 1 BTC.

Why do network fees matter when you buy crypto?

Network fees are separate from purchase fees. Coinmama does not add its own fee. All fees are shown before you confirm your order. See how purchase fees work and types of crypto fees.

Crypto is delivered to the wallet address you provide. Busy networks can slow confirmations: see blockchain delays and confirmations. When you are ready, buy crypto on Coinmama.

What are the risks and red flags?

  • A fee rate set too low can leave a transaction unconfirmed for a long time.
  • Fake fee demands. The US Federal Trade Commission warns that scam platforms may demand high fees before you can withdraw. Real network fees come from your own wallet when you send. See how to protect yourself from fraud.

Go deeper: How to send Bitcoin to a wallet, step by step.

Go deeper

Sources

  1. Bitcoin developer guide: Transactions (transaction fees and change) (accessed )
  2. Bitcoin Core 31.0.0 RPC documentation: send (fee rate in sat/vB) (accessed )
  3. ethereum.org: Gas and fees (accessed )