Transaction Fee

By CoinGecko | Updated on Mar 03, 2020

Time and resources are required in order for miners and validators to hash and sign a block on the blockchain, a transaction fee the the blockchain users is an incentive mechanism for the miners and validators to contine playing their role and securing the network with computational powers. Transaction fees are usually nominal and free-market based, where users can set the amount of fee they are willing to pay and the miners able to set the preference for which transaction to mine and reward from until an equilibrium is met.

Related Terms

When Moon

An expression used by investors to ask when the price of a coin would hit a peak

Airdrop

A way to promote cryptocurrencies by sending some free tokens to traders

Unspent Transaction Output

(abbv. "UTXO") Coins that are unspent in the wallet. UTXO virtually represents the cryptocurrency one own in the wallet.

Option

It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.

Interested to stay up-to-date with cryptocurrencies?

Get the latest crypto news, updates, and reports by subscribing to our free newsletter.