Understanding Fees
Learn how gas fees work on different blockchains, when to make transactions, and how to save money on fees
What You'll Learn
The Hidden Cost of Crypto
Every blockchain transaction requires a fee. These fees don't go to a company—they go to the validators or miners who process your transaction and secure the network. Understanding fees is crucial because they can range from a few cents to hundreds of dollars!
Think of blockchain fees like postage stamps. To send a letter (transaction), you need to pay for postage (fees). The busier the postal service (network), the more expensive express delivery (fast confirmation) becomes.
Why Do Fees Exist?
1. Security: Fees prevent spam attacks. Without fees, someone could flood the network with millions of fake transactions.
2. Incentives: Fees reward validators/miners for maintaining the blockchain. No fees = no one would run the network.
3. Priority: Higher fees get processed first. It's like paying for express shipping vs standard delivery.
Why "Gas"?
Ethereum calls its fees "gas" because like fuel for a car, it powers the network. The more complex your transaction (like a smart contract interaction), the more gas it needs. Simple sends use less gas than DeFi swaps.
Current Network Fees
⛽ Ethereum Gas Prices
Ethereum
Solana
Layer 2s (Arbitrum/Optimism)
How Ethereum Gas Works
Ethereum fees are calculated using this formula: Total Fee = Gas Units × Gas Price
Gas Units: How much computation your transaction needs. A simple ETH send uses 21,000 units. A complex DeFi swap might use 200,000+ units.
Gas Price: How much you pay per unit, measured in "gwei" (1 gwei = 0.000000001 ETH). Higher price = faster confirmation.
Example: Sending ETH with 21,000 units at 30 gwei = 630,000 gwei = 0.00063 ETH. If ETH is $2,000, that's $1.26 in fees.
Interactive Fee Calculator
Pro Tips for Saving on Fees
Check Your Understanding
Track and Compare Fees
- Visit etherscan.io/gastracker and note current gas prices
- Check gas at three different times today (morning, afternoon, evening)
- Calculate the cost of a simple ETH transfer at each time
- Visit solscan.io and look at recent transaction fees
- Compare the cost of swapping $100 on Ethereum vs Solana
- Set up gas price alerts on your phone using Etherscan app
- Practice setting custom gas in MetaMask (use testnet!)
- Try a transaction on Sepolia testnet with different gas settings