Transaction cost refers to the expenses incurred when buying, selling, or exchanging cryptocurrencies. These costs can vary based on several factors, including network congestion, transaction size, and the specific platform used for the transaction.One major component of transaction costs is the network fee, which miners or validators charge to process and confirm transactions. Higher fees might be necessary during periods of high demand when the network is busy.Another aspect includes charges from exchanges or wallets, which can take a percentage of the transaction value or a flat fee for processing trades. Additionally, there may be costs associated with converting cryptocurrencies to fiat currency or transferring funds between different wallets.Understanding transaction costs is crucial for users, as they can significantly affect overall profitability. By being aware of these costs, individuals can make informed decisions about timing and methods for conducting transactions, ultimately leading to better financial outcomes.