Gas fees are one of the most confusing aspects of blockchain for newcomers. This guide breaks down what gas is, why it exists, and how to minimize your transaction costs.
What is Gas?
Gas is the unit measuring the computational effort required to execute operations on Ethereum. Every transaction, from simple transfers to complex smart contract interactions, requires gas to process.
Gas Price vs Gas Limit
Gas price (measured in Gwei) is what you pay per unit of gas. Gas limit is the maximum gas you’re willing to use. Total fee = Gas Used × Gas Price. Higher gas prices mean faster transactions.
Tips to Save on Gas
- Transact during off-peak hours (weekends, early morning UTC)
- Use Layer 2 solutions like Arbitrum or Optimism
- Batch transactions when possible
- Monitor gas prices with tools like Etherscan Gas Tracker