How to avoid miner fees
Cryptocurrency users are all too familiar with the dreaded miner fees. These fees, also called GAS fees, are necessary to incentivize miners to include transactions in a block, and they can often be quite high. This is because miners are responsible for verifying and confirming transactions on the blockchain. While most transactions are processed quickly, sometimes miner fees can add up, resulting in higher costs for the sender.
What are network fees?
Network fees are the cost a sender pays to have their transaction included in a block by miners. When sending cryptocurrency, users must attach a small fee in order to incentivize miners to process their transaction. The current fee structure is set up so that those who want their transactions processed quickly are willing to pay more.
Why is the blockchain fee so high?
The blockchain fee is high when the network is congested. This means that there are more transactions waiting to be processed than there is space in the blocks being created by miners. As a result, those who want their transaction processed quickly are willing to pay a higher fee.
How can I avoid high fees?
There are a few things you can do to avoid high fees. First, you can try to avoid sending transactions during times of network congestion, such as during the weekend.
Second, you can reduce the fee if your transaction is not needed urgently by setting a custom fee, then you can wait and let the transaction occur when the opportunity arrives.
There are many services that allows you to set your own fees. With these services the transaction make take time to occur but when it does, it will be at the reduced fee.
Ethereum and the London Hard Fork
The second-largest cryptocurrency after Bitcoin, Ethereum, upgraded in August 2021 which has significant impact on its ability to run smart contracts and build apps. However, the upgrade, also called the "London Hard Fork" also had an impact on mining fees as they are now all standardised. However users can add a "tip" for the transaction which can allow to jump the queue. On a side note this also means that the long term future of mining Ethereum will decrease whereas mining Bitcoin using ASIC miners will continue.
What can I do to reduce the blockchain fee in the meantime?
There are a few things you can do to reduce the blockchain fee in the meantime. First, you can try to avoid sending transactions during times of network congestion. Second, you can use a service that allows you to set your own fees. Finally, you can wait for the fee structure to change.