What is a gas fee? Why sending crypto costs money
By SendPay Business · · 2 min read
A gas fee is the charge paid to a blockchain network to process a transaction. The name comes from Ethereum, but most blockchains charge some kind of network fee for sending coins or running a smart contract.
What the fee pays for
Blockchains are run by computers around the world that check and record transactions. The fee pays them for that work and stops people flooding the network with junk transactions.
Why gas fees change
Fees rise when many people want to use the network at once, because transactions compete for limited space in each block. Simple transfers usually cost less than complex smart contract actions such as swaps.
Gas fees vs exchange fees
A gas fee goes to the network. An exchange fee goes to the business you buy or sell through. When you withdraw crypto from an exchange to your own wallet, you may pay both.
Avoiding overpaying
- Check the fee shown before you confirm a transaction.
- Send at quieter times if it isn't urgent.
- Make sure you're using the right network for the coin you're sending.
Where SendPay fits
SendPay crypto exchange platforms let your customers buy, sell and hold crypto under your own brand, with assets held with regulated partners, and you set your own trading fee.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How much will my transaction cost?
Work out an Ethereum fee in ETH and in your currency.
Gas fee calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.