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What are Gas Fees?

Learn what gas fees are and how to pay them in Best Wallet.

Updated over a week ago

You will have to pay Gas Fees whenever you swap or send crypto in Best Wallet. But what exactly are they and why do you have to pay them?

The easiest way to think of gas fees is like the additional convenience fees that credit cards or payment companies charge for processing transactions. When you pay gas fees, you’re essentially paying for your crypto transaction to be processed, validated, and secured on a blockchain.

Gas fees might also be called transaction fees or network fees depending on the blockchain.

Note: No gas fees are paid to Best Wallet, and Best Wallet adds no additional service or platform charges to the industry-standard gas fees.

Paying gas fees on Best Wallet

Gas fees need to be paid in the native token of the crypto network you're using. For example, if you're sending an ERC-20 token (a type of token on the Ethereum network), you'll pay the gas fee in Ethereum's native cryptocurrency, $ETH.

Think of it like paying for something with your debit or credit card when abroad. You will pay using the local currency but must pay any exchange rate fee in your home country's currency.

This is why it's important to own some of the native blockchain's currency in your Best Wallet. For example, it's good crypto practice to always have some $ETH in your wallet, to help execute transactions quickly and efficiently.

You can buy $ETH, as well as the native tokens of the Polygon network ($MATIC) and BNB Smart Chain network ($BNB), directly in Best Wallet.

Who receives gas fees?

Blockchains require computing power to process and record transactions. This power doesn't come from a central source but from a network of computers called nodes.

The people who run these nodes are called validators, and they play a crucial role in keeping the blockchain secure and operational.

When you pay a gas fee, you're essentially compensating these validators for their work.

This compensation helps maintain the blockchain's decentralised nature, making it secure and free from central control. Gas fees are essentially a democratic means of rewarding those who maintain crypto networks.

Best Wallet does not set or receive any gas fees paid.

How are Best Wallet’s gas fees calculated?

When you're about to make a transaction in Best Wallet, you'll see an "Expected gas fee". The gas fee amount will depend on several things, including the size of the transaction, what crypto network you're using, and how busy the network is.

For example, sending $100 worth of USDT tokens will incur marginally lower gas fees than if you were to send the "Max" amount.

This fee can change based on several factors:

  • The Crypto Network: Different blockchains have their own fee structures. Ethereum’s network is known for having high gas fees compared to other networks.

  • Network Traffic: The busier the network, the higher the fees. It's like rush hour traffic; more cars on the road mean longer wait times and higher gas consumption.

  • Network Capacity: Each network can handle only so much activity at once. The closer it is to its limit, the higher the fees. The higher a network’s capacity, the more likely it maintain low gas fees.

  • Size of Transaction: Each gas fee is calculated roughly as a percentage of your transaction – the higher the value you transact, the higher the fee.

The gas fees on Best Wallet are reflective of the general networks' fees, meaning that they are consistent across any non-custodial crypto wallet provider or decentralised exchange.

In summary:

Gas fees, whilst adding an extra cost to any crypto transaction, are vital to making cryptocurrency networks possible. They are unavoidable but necessary in making cryptocurrencies possible.

Make sure to own an amount of each supported network's native token in Best Wallet by buying them directly in-app, to be able to successfully trade your crypto.

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