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One of the main concerns of the Ethereum platform is scalability. As more and more decentralized applications use the platform and transactions grow exponentially, so will gas charges.
Simply put, if there are too many users on the blockchain, buying and selling becomes more expensive.
When making a transaction, you will always be charged a commission, which must be paid in ETH. Moreover, if you want to send any ERC-20 token, you must also have ETH in the same wallet to cover the fees.
Quite complex transaction system
How does it work if you want to send a transaction from your wallet that only contains ERC-20 token and does not contain ETH? Simply put, you will need to transfer ETH to your wallet in order to receive the token.
If you don’t have ETH in another wallet, you may need to open an exchange, buy enough ETH to cover the fees plus any fees the platform charges, and send it to your wallet.
It is important to take into account that the Ethereum network transshipment fees are constantly fluctuating, so by the time the tokens reach the desired wallet, they may not be enough to pay for the “gas”.
On the other hand, it is also possible to send an excess amount and a small amount of ETH will be stuck in the account, which you may never use, or lose the cost of sending due to gas charges.
So Ethereum is slow and expensive?
The recent explosion of DeFi has highlighted the serious weakness of Ethereum as a system for day-to-day payments. Namely, he showed that it is slow and expensive. Ethereum is currently based on the so-called Proof of Work (PoW) consensus mechanism. In the case of Ethereum, this takes the form of a huge network (~ 11,000) of decentralized nodes (computers) that verify each transaction individually. Anyone who starts a node gets paid.
So, it’s simple: you want to complete a transaction and you want to take precedence over everyone, so you pay a higher commission.
Gas charges are currently around $ 20-60 per transaction, regardless of the amount sent. And when interacting with smart contracts such as Uniswap, fees can be more than ten times higher.
So how do you make it faster, cheaper and more user-friendly?
Here is a small guide on how to save 90% on commissions when transferring ETH:
What is needed for this:
- Register on the FTX Exchange
- Register FTX Wallet
- We put stablecoins on the FTX exchange, it is better to start USDT through the TRC network.
- We buy ETH for the entered stablecoins.
- We transfer ETH from the exchange to the FTX wallet (withdrawal fee $ 0).
- And from there we already throw ETH to Metamask (here also the commission will be zero).
- As a result, everything turns out to be $ 1 instead of $ 20-60.
Posted by Newt Salamander, Analyst at Freedman Club Crypto News
#save #commissions #transferring #ETH