Blockchain network fees are fees charged according to the rules of the blockchain network you use when sending an on-chain transaction. The fee is required by the network, not by BitBox, and the exact mechanism depends on the blockchain.
In general, network fees help blockchain networks process transactions, manage limited capacity, and protect the network from spam. Depending on the network, the fee may be paid to miners or validators, burned by the protocol, or divided between these mechanisms.
Network fees do not go to BitBox
Network fees are charged according to the rules of the blockchain you use. Depending on the network, a fee may be paid to miners or validators, burned by the protocol, or divided between these mechanisms. BitBox and Shift Crypto do not receive the network fee.
Why do blockchain networks charge fees?
Blockchain transactions consume limited network resources. A transaction must be broadcast, validated, and included according to the rules of the network.
The exact purpose of a fee depends on the network, but fees may:
- compensate miners or validators,
- make spam transactions costly,
- allocate limited network capacity,
- influence which transactions are processed first.
Why do network fees change?
Network fees are not fixed. They increase or decrease depending on the current conditions of the blockchain network.
Network fees change because current demand, available capacity, and the type of transaction can change. When many users want to send transactions at the same time, fees may rise because the network has limited capacity.
The transaction itself can also affect the fee. On some networks, the size of the transaction matters. On others, the amount of computation required by the transaction is more important. Not every blockchain uses the same fee market or the same prioritization rules.
How do fee models differ?
Different blockchain networks use different mechanisms to calculate transaction fees. The following examples illustrate the most common fee models you'll encounter when using Bitcoin, Ethereum, and other blockchain networks.
Bitcoin network fees
Bitcoin fees depend on the transaction's virtual size and the selected fee rate. The fee rate is commonly shown as sat/vB, which means satoshis per virtual byte.
A Bitcoin transaction with more inputs is generally larger, so it can cost more to send at the same fee rate. This is why Bitcoin users sometimes learn about unspent transaction outputs, or UTXOs, when trying to understand fees.
For a deeper explanation of why Bitcoin transaction fees exist, read the BitBox blog article Why do I have to pay a transaction fee?.
If you want to understand why consolidating Bitcoin UTXOs can affect future transaction fees, read What is UTXO consolidation and how can it help me reduce transaction fees?.
Ethereum and EVM gas fees
Ethereum and many EVM-compatible networks use gas fees. Gas measures how much computational work a transaction requires.
The total fee depends on the gas used by the transaction and the current fee conditions on the network. On Ethereum, the base fee is burned by the protocol, while the priority fee goes to validators.
A simple ETH transfer, a token transfer, a swap, and an interaction with a decentralized application can all use different amounts of gas.
Which currency pays an EVM network fee?
On Ethereum and other EVM-compatible blockchains, network fees are always paid using the blockchain's native currency, regardless of which token you send.
Examples: Ethereum uses ETH, Base uses ETH, BNB Smart Chain uses BNB, and Polygon uses POL.
If your wallet contains only tokens but no native currency, the transaction cannot be broadcast until enough native currency is available to pay the network fee.
To learn more about how Ethereum gas fees are calculated, see the official Ethereum documentation on gas fees.
Other blockchain network fees
Beyond Bitcoin and Ethereum, every blockchain defines its own fee structure. For example, Solana uses a fee model based on transaction signatures and optional priority fees, while the XRP Ledger charges small network fees designed primarily to prevent spam. Every blockchain defines its own rules for calculating transaction fees.
Fee structure and BitBoxApp support are separate questions. A network can have its own fee model even if it is not supported for sending transactions in the BitBoxApp.
Network fees in the BitBoxApp
The BitBoxApp estimates a suitable network fee for supported transactions. Available fee options depend on the asset and transaction type. Where custom fees are supported, you can enable the Custom Fee setting for additional control.
Lower fees may lead to longer confirmation times. If you are unsure which fee to choose, use the estimated or default option provided by the BitBoxApp.
For more control over supported transaction fees, see Enable Custom Fees in the BitBoxApp.
What happens if the network fee is too low?
If the network fee is too low for current network conditions, the transaction may remain pending longer than expected. This usually means the transaction has been sent to the network but has not yet been confirmed.
For the general next steps, see Why is my transaction pending?.
Check a transaction or current fee conditions
To inspect network conditions or look up a transaction, see How to use a block explorer.
External third-party tools such as mempool.space for Bitcoin or the Etherscan Gas Tracker for Ethereum can also show current fee estimates, but they are not operated by BitBox.
Questions and answers
Do I pay a network fee when receiving funds?
The sender normally pays the fee for the incoming on-chain transaction. The recipient may pay a new network fee when spending those funds later.
Do I pay a network fee when sending funds to myself?
Yes. An on-chain transaction normally requires a network fee even when you send funds between your own addresses or accounts. The blockchain network does not determine whether both addresses belong to the same person. It still needs to validate, process, and record the transaction according to the network’s rules.
For example:
- Sending bitcoin between two of your own Bitcoin addresses or between different Bitcoin accounts in the same wallet still requires a Bitcoin network fee.
- On Ethereum and other EVM-compatible blockchains, sending tokens between your own addresses also requires the applicable network fee.
- Moving assets between EVM-compatible networks through a bridge also requires network fees. Depending on the bridge and route, fees may be required on one or both networks.
Can I avoid blockchain network fees?
An on-chain transaction normally requires a network fee. You may sometimes reduce the fee by waiting for lower demand or selecting an appropriate lower-priority option, but confirmation may take longer.
Is a network fee the same as an exchange or service fee?
No. A network fee is charged according to the blockchain protocol. An exchange, broker, swap provider, or other service may charge a separate service or withdrawal fee.