What Are Network Fees?

Network fees (often called miner fees) are payments included with every Bitcoin transaction to incentivize miners to process and confirm it. Fees don’t depend on the value of the transaction but rather on the size, measured in virtual bytes. For example, sending $10 worth of Bitcoin could cost more than sending $10,000 if the transaction structure is more complex.

Fees fluctuate based on network congestion. When many users are transacting simultaneously—during market volatility or popular events—fees rise as people compete for block space. When activity is low, fees drop. Most modern wallets automatically calculate a recommended fee based on your desired confirmation time, with options ranging from “fast” to “economy.”

It’s important to understand that network fees go directly to miners, supporting Bitcoin’s security model. The fee you choose balances patience and priority. If you aren’t in a rush, selecting a lower fee can save money. If you need confirmation quickly—such as for a purchase—you may choose a higher fee to expedite processing.