Transaction Fee

When Satoshi Nakamoto created the Bitcoin cryptocurrency blockchain network, the concept of transaction fees was created to prevent spam transactions which could clog and slow down the speed of the entire network. Bitcoin miners are paid incentives for the transaction verifications they complete, which help to secure the Bitcoin blockchain network. Transaction fees are also an extra form of compensation for miners to help compensate them for the diminishing block subsidy. It’s important to differentiate the different types of transaction fees associated with doing a bitcoin transaction. If you purchase Bitcoin (BTC) using a centralized exchange like Coinbase, you are charged a transaction fee by Coinbase, which is separate and not related to the Bitcoin network transaction fee. These exchange fees have nothing to do with the transaction fees hardcoded into the actual Bitcoin blockchain network. Every single transaction on the Bitcoin network has a bitcoin transaction fee irrespective of any type of secondary fee structure added by a centralized exchange.