In early 2021, the Ethereum network saw unprecedented congestion, driving gas fees to all-time highs. During peak periods, users were paying over $100 in fees for simple transactions, making routine transfers and trades prohibitively expensive for many. This surge in costs highlighted the volatility and unpredictability of gas fees, which can fluctuate dramatically with network demand.

As cryptocurrency adoption grows, so does the volume of transactions across various blockchains. For users who transact frequently, whether for personal transfers, trading, or interacting with decentralized applications (dApps), high gas fees can significantly eat into profits and savings. Minimizing these transaction costs is crucial not just for individual savings but also for the broader goal of making cryptocurrency more accessible and efficient for everyone.

To help crypto users navigate and reduce these often unpredictable expenses, we will explore five key strategies to avoid paying huge gas fees on crypto transactions.

1. Choose the Right Time

Gas fees on the Ethereum network and other blockchains are directly influenced by network congestion. During peak hours, when many users are trying to process transactions simultaneously, gas fees can skyrocket. This happens because the blockchain has a limited capacity to process transactions, and when demand exceeds this capacity, users must pay higher fees to have their transactions processed quickly. Conversely, during off-peak hours, when the network is less congested, gas fees tend to be much lower as fewer transactions compete for space in the next block.

The best times to transact to avoid high fees are generally during off-peak hours, which can vary depending on the global user base. Saturdays and Sundays often see reduced network activity compared to weekdays, making them good times for lower fees. Using tools like ETH Gas Station or Etherscan, users can monitor gas prices and plan their transactions for these off-peak times. Additionally, setting up alerts through these tools can notify users when gas fees drop to a predetermined threshold, allowing for timely and cost-effective transactions.

2. Use Layer 2 Solutions

Layer 2 solutions are protocols built on top of a blockchain (Layer 1) to improve scalability and reduce transaction fees. They achieve this by handling most of the transaction processing off the main blockchain, thereby alleviating congestion on the primary network. There are various types of Layer 2 solutions, with Optimistic Rollups and zk-Rollups being two prominent examples:

Optimistic Rollups assume transactions are valid by default and only verify them if there is a dispute, significantly reducing the amount of data processed on the main chain. They aggregate multiple transactions into a single batch, which is then confirmed on the Layer 1 blockchain.

zk-Rollups (Zero-Knowledge Rollups) use zero-knowledge proofs to validate transactions off-chain. They generate a cryptographic proof that is submitted to the main blockchain, ensuring that the transactions are accurate without revealing specific details. This method enhances both scalability and privacy.

See Also: Rollups Explained For Beginners

3. Opt for Alternative Blockchains

Ethereum, as one of the most popular and widely used blockchains, frequently experiences high gas fees. This is largely due to its popularity and the high volume of transactions, which lead to network congestion. The Ethereum network processes a finite number of transactions per second, so when demand exceeds this capacity, users must bid higher fees to have their transactions prioritized. While Ethereum 2.0 promises to alleviate some of these issues through scalability improvements, the current state often results in prohibitively high transaction costs during peak times.

To avoid high gas fees on Ethereum, users can opt for alternative blockchains that offer similar functionalities but with lower transaction costs and faster processing times. Here are some prominent options:

• Binance Smart Chain (BSC): BSC is known for its low transaction fees and high throughput. It is compatible with Ethereum’s Virtual Machine (EVM), making it easy for developers to port their dApps from Ethereum. BSC's architecture allows for faster block times and cheaper transactions, which attract users looking to minimize costs.
• Solana: Solana boasts high-speed transactions and low fees due to its unique consensus mechanism called Proof of History (PoH), combined with Proof of Stake (PoS). Solana’s network can handle thousands of transactions per second, making it a strong competitor in the blockchain space, especially for applications requiring high throughput and minimal latency.
• Avalanche: Avalanche offers a highly scalable and secure blockchain platform with low transaction fees. Its consensus protocol allows for near-instant transaction finality, and it supports the creation of custom blockchains and decentralized applications. Avalanche’s interoperability with Ethereum also makes it a viable alternative for users seeking lower fees.

See Also: Comparing Network Fees - Ethereum vs. BSC vs. Polygon vs. Solana

4. Use Gas Tokens

Gas tokens are innovative tools designed to help users save on gas fees during periods of high network congestion. They work by leveraging the mechanics of Ethereum's gas fee model, which involves refunding gas when storage is freed on the blockchain. Gas tokens like Chi Gastoken (CHI) and GasToken (GST2) are ERC-20 tokens that can be minted when gas prices are low and burned when gas prices are high, effectively reducing the overall cost of transactions during peak periods.

Gas tokens can provide substantial cost savings, particularly during times of network congestion. Gas tokens can be particularly beneficial for users who regularly engage in complex transactions, such as deploying smart contracts or interacting with decentralized finance (DeFi) protocols, which typically incur higher gas fees. Gas tokens provide users with greater flexibility in managing their transaction costs, enabling them to choose the most cost-effective times to transact.

5. Use Cwallet

Cwallet is a cryptocurrency wallet with various automatic functions that help you pay the least amount of gas costs possible. Using Cwallet to conduct transactions automatically adjusts the gas limit to the exact amount required for the transaction to pass through and nothing more, so you don't pay more than necessary. Even better, the wallet allows users within its network to transmit and receive crypto tokens and NFTs without incurring any gas fees.

Cwallet offers several transactions to ease crypto transactions. Signing up on Cwallet issues you a unique wallet ID that allows you to make gas-free transactions with other wallet users using their wallet ID.

The Cwallet non-custodial wallet option allows you to manage your swap transactions automatically and calculate what's best for your trades. When you want to swap on your non-custodial wallet, you can set your network fee to your preference. All you need to do is:

• Navigate to the swap button on your non-custodial wallet homepage.
• Choose the "From Token" and Network
• Then, choose the "To Token" and Network vou want.
• Enter the amount of From Token, the amount you fill in has to be within the limitation to ensure the transaction can be created successfully.
• Then you can customize the network fee to suit your needs, as shown below

Final Thoughts

High gas fees can be a significant barrier, but with the right strategies, users can navigate these challenges and optimize their costs. Whether it's choosing the right time to transact, leveraging Layer 2 solutions, opting for alternative blockchains, utilizing gas tokens, or optimizing transaction parameters, these methods collectively empower users to make more cost-effective decisions.

Cwallet is designed to be a comprehensive solution that simplifies the implementation of these strategies. Cwallet provides users with all the tools they need to reduce their transaction costs. Its user-friendly interface and robust functionality make it easier for both novice and experienced users to navigate the complexities of the crypto space efficiently.

Start using Cwallet today to take full advantage of these fee-saving strategies and stay ahead.