One of the biggest barriers to adoption for crypto as a medium of exchange is of course transaction fees.
Fees on some blockchains such as Bitcoin & Ethereum have been a major pain point for many crypto users, especially in times of network bloat. And while these have come down a bit recently, its only a matter of time until demand starts picking up and we face the same pain points.
So, are there alternatives? What are the cheapest networks to use? And what’s the point of having fees anyway?
Well, that’s exactly what I will be covering in the video today! A complete 101 guide to crypto transaction fees.
As you can imagine, transaction fees can get pretty technical, but the general idea is that you’re paying for space in a block for standard cryptocurrencies like Bitcoin, and paying for computation in a block for smart contract cryptocurrencies like Ethereum.
While transaction fees are technically optional for standard cryptocurrencies, they’re effectively required for smart contract cryptocurrencies, because every transaction requires some amount of computation. This amount of computation is called gas. The more you know.
As for the lowest fee cryptocurrencies, this actually changes based on the demand for that particular chain. Right now, the lowest fees for smart contract transactions can be found on Solana and Algorand, but as you’ll see, low fees isn’t always a good thing for security.
⛓️ 🔗 Useful Links 🔗 ⛓️
► Bitcoin Blocks Visualizer: https://mempool.space/
► Ethereum Gas Limit: https://etherscan.io/chart/gaslimit
► Ethereum Gas Costs (Appendix): https://ethereum.github.io/yellowpape…
► Transaction Fees For Popular Cryptos: https://gasfeesapp.com/#/gas
► Ethereum Transaction Fee Traffic: https://ethereumprice.org/gas/
► MEV Tracker by Flashbots: https://explore.flashbots.net/
► Sandwiched Front Runner Tracker: https://sandwiched.wtf/
📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.