How to minimize Gas fee?
To position Islander as a learn-to-earn & affiliate marketing platform promoting crypto adoption, Islander is not only a place where retail investors can find and learn from potential projects but also provides informative news. Currently, our primary goal is to serve as a springboard for the top initiatives in the Avalanche ecosystem. So, with this “Avalanche How-to” series, we will provide you with the fundamentals of this potential ecosystem.
The next post in our “Avalanche How To’’ series is about Gas fee.
But first of all, what is Gas fee?
Gas fee is a fee that you have to pay for a transaction to be made. Gas is used to:
- Completing Exchange
- Executing Smart Contracts
- Launching Decentralized Applications
- Data Storage Payment
Gas fee can be calculated as (gas consumed) * (gas price).
Gas consumed is a unit of measurement for the computer energy needed to perform a specific transaction on the network.
Gas Price is the amount in fundamental token of that blockchain you are willing to spend per Gas unit. The gas price of the transaction is determined by the parameters of the transaction and the base fee of the block that it is included in. Gas price will affect the validation speed of transactions in the network. The greater the gas price you pay, the faster the validator will validate your transaction.
When a blockchain platform has too many transactions to process and reaches its limit, network congestion happens. Transactions that pay higher costs will be prioritized by validators, while those with low gas fees will be pushed out later. So, sometimes, during periods of high network activity, transactions can be charged at a higher gas fee, remain pending for a very long duration, or even instantly get a failed transaction notification.
How to minimize Gas fee?
To minimize gas fees and perform transactions go more smoothly, you can apply the following tips:
- Make as few transactions and steps as possible because you will have to spend gas at every step.
- Predict how much gas you will need to avoid the transaction failing and incurring additional fees due to a lack of gas.
- Avoid making transactions during peak hours to prevent network congestion leading to high gas fees as well as the risk of transaction failure. To track and estimate the gas fee, you can access here.
- You can even reduce more gas fees when making a transaction through MetaMask by following these simple steps: