Fee vs Transaction

A cryptocurrency fee (also called transaction fee or network fee) is the amount paid to blockchain validators for processing and confirming transactions. These fees compensate miners or stakers for computational resources and security, functioning as market mechanisms prioritizing transactions during network congestion.

A cryptocurrency transaction is a digital transfer of value from one address to another, recorded permanently on the blockchain. Transactions are verified by network participants through consensus mechanisms and become irreversible once confirmed, representing the fundamental operation enabling cryptocurrency functionality.