#Firstdealofthenewyearastylz Transaction Fees and Network Costs Cryptocurrency transactions incur fees, which vary based on: Network Congestion: Higher demand increases transaction fees. Blockchain Type: Bitcoin and Ethereum have higher fees than Layer 2 solutions like Lightning Network. Smart Contract Execution: Ethereum transactions involving smart contracts consume gas fees. Market Volatility and Investment Risks The financial breakdown of cryptocurrency must account for market volatility, driven by: Speculation: Investor sentiment and news can cause drastic price swings. Regulatory Announcements: Bans, regulations, or endorsements from governments impact prices. Liquidity and Market Depth: Thin order books lead to higher price fluctuations. Institutional Involvement: Large investments from hedge funds and corporations influence stability.