The Ethereum blockchain is so popular because it offers utility. Many crypto users might just kinow Ethereum as the second cryptocurrency with the largest market capitalization but it is more than that. Crypto miners can use the Ethereum blockchain create cryptocurrencies, DeFi projects, and new decentralized exchanges. Some of the most successful and popular cryptocurrencies and tokens on the Ethereum blockchain are; Dai, Shiba Inu, Arbitrum, Sandbox, Render token, Loop ring, Enjin coin, Mask network, JasmyCoin, Coin Metro Token, ECOMI, Gains Farm, and lots more.
Thousands of people use these services daily, but this comes at a cost—a gas fee. Understanding Ethereum (ETH) gas fees is critical to effectively using the Ethereum network. In this post, we’ll cover the basics of Ethereum gas fees, including what they are, how they’re calculated, and how to spend less on them.
What are Ethereum gas fees, and why are they expensive?
The Ethereum gas fee refers to payment made by miners when transacting on the ethereum blockchain. The network requires a specific amount of computational power provided by miners using Ethereum mining software. These miners generate Ethereum tokens (ETH) to maintain the network’s security and, in return, receive compensation for their contributions in the form of gas fees. The gas fee is denominated in Gwei, where one Gwei is equivalent to 0.000000001 ETH.
Ethereum can process 15 transactions per second, and with millions of users using the blockchain simultaneously, the network gets congested. When you make a transaction, it competes with other transactions to get into the next block and is sent to the network for validation. If the network is congested, your competitor might pay something extra to push the transaction ahead of others. This increases the gas fees.
How to calculate Ethereum gas fees
The two main units you’ll usually see for Ethereum gas fees are Wei and gwei (or Giga Wei). Wei is the smallest denomination of Ether and represents a minuscule fraction of one token. One ETH contains a quadrillion wei and a billion gwei.
Ethereum gas prices are measured in gwei, and this unit is used in a basic equation one can use to calculate gas fees:
Gas units (limit) * Gas price per unit (in gwei) = Gas fee
In this sum, the gas limit relates to the maximum amount of gas you are willing to use in a transaction, and the gas price per unit is how much it costs in gwei.
Top tools to calculate Ethereum gas fees online
Thanks to work being done in the crypto ecosystem, there are now tools that help you calculate Ethereum gas fees online. The best tools for calculating your Ethereum gas fees are discussed below.
Blocknative
Blocknative does not use fast, average, or slow gas rates. Instead, it lists five prices that range from more likely to less likely. As each new block is introduced to the blockchain, a new set of gas prices appears on the page. Blocknative also shows miners’ priority fees and provides a graph of recent gas prices to see where things have been going in terms of gas prices. This includes both the current base and priority fees across the Ethereum blockchain.
ETH gas station
ETH Gas Station is an excellent resource for calculating your gas fees. On this site, you can find live updates on the fast, average, and slow gas rates across the Ethereum blockchain.
You can see the priority gas fee (which is the fee paid directly to miners on the blockchain) and the gas price in gwei. Below these, you can also view the current base fee, which dictates how much gas is required for a transaction to take place at all on the Ethereum blockchain.
Gwei gas calculator
The Gwei Gas Calculator offers a simple interface to determine current gas prices quickly. This site shows the current market price of Ethereum and the fast, average, and slow gas rates (though they are labeled as low, normal, and fast in this case). Gwei Gas Calculator also shows the gas fees for performing various functions on three popular NFT marketplaces: Opensea, Rarible, and Foundation. Here, you can see what it’ll cost you in gas fees to list, buy, mint, and approve NFTs. Additionally, you can see what it’ll cost in gas fees to wrap Ethereum and place or settle bids.
How to avoid Ethereum gas fees
If you want to avoid gas fees, here are a few ways to mine and trade with Ethereum at a lesser gas fee.
- Always wait for high-traffic time to pass before trading on the Ethereum blockchain. This means you must pick your transaction times carefully when fewer people are utilizing the network. This is because more people on the network usually means higher gas fees.
- Nowadays, exchange platforms have a feature that helps users change their default fee settings to lower their gas fees depending on the situation. So, check if your Ethereum wallet has this feature and exploit it.
- Polygon (MATIC) is a cheaper alternative ETH scaling solution to process transactions. It’s an ideal option for frequent or large transactions as it’s faster and more cost-effective than Ethereum’s mainnet. Many platforms support Polygon.
- You can also reduce Ethereum gas fees by comparing rates when buying ETH or ERC-20 tokens on different platforms to ensure you get the lowest price.
The best platform to sell Ethereum at the best rates in Nigeria
Truthfully, trading Ethereum for cash in Nigeria can be quite difficult, especially if you are a new crypto trader still trying to find your way around. Many crypto traders in Nigeria have isolated experiences of scams on different platforms, and that is because they do not know how to identify the good ones. A good exchange platform must be easy to use with a simple user interface, be well-secured, offer incentives like referral bonuses, exchange crypto at reasonable rates, and offer wonderful customer service—Astro Africa. This innovative platform houses these awesome features and even more. With Astro Africa, you will have one less thing to worry about crypto trading and enjoy the whole experience. To get started, visit the Astro Africa website or download the app, create an account, and start trading on Astro Africa at the best rates.
