What Fee Mechanisms Work within the Cryptocurrency Market | Tecnological Investments+Online Finances

What Fee Mechanisms work within the Cryptocurrency Market:
The mechanism for how fees work in the cryptocurrency market is an essential part of operations in blockchain networks and exchanges, both decentralized and centralized.
They incentivize participants to keep the network running, pay for computational resources used in transactions, and reward miners or validators who guarantee the security of the system. Here is a summary of how these fees work in different aspects of the cryptocurrency market:
Transaction Fees on Blockchains: Transaction fees are charged every time a transaction is made on a blockchain network, such as Bitcoin or Ethereum. They serve to compensate miners (or validators, in the case of Proof of Stake blockchains) for the work of processing and confirming transactions.
Bitcoin (BTC):
Mining Fee: Each time a Bitcoin transaction is made, a small fee is paid to miners who include that transaction in the next block.
Mempool: Transactions await confirmation in the "mempool" (a type of queue). Miners prioritize transactions with higher fees.
Variability: The rate is adjustable. Users can choose to pay more to have their transactions processed faster. When there is high demand on the network, fees increase as there is competition for transactions to be confirmed.
Ethereum (ETH):
Gas Fee: Ethereum uses a concept of "gas", which is the unit of work required to perform operations on the network. The gas is multiplied by the gas price (defined by the market) to calculate the total transaction cost.
EIP-1559: In August 2021, an update was introduced that changed the fee mechanism on Ethereum. Now there is a base fee that is burned (destroyed) and a tip fee that is paid to miners/validators.
Scalability: With the upgrade to Ethereum 2.0 and the transition to Proof of Stake (PoS), fees are expected to be reduced and the network to have greater scalability.
Centralized Exchange (CEX) Fees - Centralized exchanges, such as Binance, Coinbase, Kraken and others, charge fees on different transactions:
Trading Fees:
Taker Fee: Charged to the trader who executes a market order immediately against an order already existing in the order book.
Maker Fee: Charged to the trader who creates a new (limit) order, providing liquidity for the order book. On many exchanges, this fee is lower than the “taker” fee.
Withdrawal Fees: Charge applied when a user withdraws cryptocurrencies from an exchange to an external wallet. These fees are generally fixed, but can vary depending on currency or network load.
Fees on Decentralized Exchanges (DEX) - Decentralized exchanges like Uniswap, PancakeSwap and other DeFi protocols work differently:
Protocol Fees: A percentage is charged on each transaction or exchange of tokens. This value goes to liquidity providers, who maintain the liquidity pools needed to execute swaps.
Thank You, Guys.