Monero transaction fees work differently from Bitcoin and Ethereum fees, and they are worth understanding before you transact. The short answer: Monero fees are low, predictable by comparison to Ethereum, and calculated based on transaction size in bytes rather than network congestion bidding.
How Monero fees are calculated
Monero uses a dynamic block size with a fee structure tied to the median block size over the previous 100 blocks. Transaction size in Monero is larger than in Bitcoin because of the privacy mechanisms — ring signatures include data for all 16 ring members, RingCT includes range proofs. A typical Monero transaction is roughly 1.4–2 kilobytes. At current fee levels, the fee for a standard transaction is usually between $0.01 and $0.05 USD equivalent.
Comparison to Bitcoin and Ethereum
Bitcoin fees are determined by competitive bidding for limited block space and have reached $50+ during peak periods. Ethereum fees fluctuate with network usage and can cost $10–$100 for complex transactions. Monero fees are more stable — the dynamic block size prevents severe spikes, and fees in USD equivalent terms have rarely exceeded a few cents for standard transactions.
The effect of Bulletproofs
In 2018, Monero implemented Bulletproofs, reducing transaction sizes by roughly 80% and fees by a corresponding amount. Bulletproofs+ in 2022 improved this further. Monero transactions today are significantly cheaper than in 2017–2018, despite providing stronger privacy guarantees.
When you exchange Monero through Terce, the network fee for the outgoing transaction is included in the exchange rate. You do not pay it separately.