Transaction Fees

Transaction fees, or network fees, are the difference between the amount sent and received. The fees are allocated to a transaction by either the sender or the exchange, and the fee is used to incentivise miners to look at and process a certain transaction. Different cryptocurrencies have different fee structures, but Bitcoin and Ethereum have an open market for blockspace. Since there is only a finite amount of transactions that can fit in a block or be added to the block in the block time, the miners will add the transactions first that have the highest fees.