In this article, I will discuss the How to Track Gas Fees, which are important for participants in blockchain transactions.
Knowing and tracking these fees assists in cost optimization and efficient processing of transactions.
Reliable gas fee trackers and best practices can help users manage the ever-changing world of gas fees with ease.
What are Gas Fees?
Gas fees are transaction costs incurred for processing activities or executing smart contracts on a blockchain. Miners and validators receive payment in the form of gas fees for providing transaction processing services.
Depending on how busy the network is, how complicated the transaction is, and how much the gas price is (in Gwei), the gas fee may differ.
If you want to know how Ethereum gas fees work, here is a simple breakdown of how to track gas fees on Etherscan:
Step-by-Step Guide to Track Gas Fees on Etherscan
Go to Etherscan Gas Tracker: You can check out Etherscan gas tracker to see current gas prices in Gwei (1 Gwei is equal to 0.000000001 ETH). The Gwei rates are categorized to low, average, and high.
Enter Transaction ID: To view particular transaction information, type the specified ID in the search bar so that you can view the associated gas fees.
View Etherscan Gas Tracker Page: Etherscan gas page displays the overall gas fee trends of other transactions to make projections for yours.
When Making a Transaction: When you are confident to make a transaction, you can set the gas fees according to what your desired confirmation speed is. Lower for slower confirmation and higher for faster.
Monitor Fees: Keep an eye on the gas fees since they tend to change with network congestion. To make the process simpler for you, Blocknative’s Gas Extension Browser has alerts for Chrome, Firefox, and Brave.
Example: Using Etherscan to Track Gas Fees
Go to the Etherscan Page: Now start your web browser and type in Etherscan.io in the search bar.
Look out for Gas Tracker: Moving on from the previous step, click on the “Gas Tracker” section hamburger on the home page.
Check Out the Present Gas Rate: On the top of the page, you can see the current gas prices in Gwei. An instance is the lowest price which can be 0.793 Gwei, average 0.798 Gwei, and the highest point being 0.878 Gwei.
Specify the Fees of the Transactions: Whenever you feel ready to take part in a transaction, the gas fee can be adjusted in accordance to the set prices mentioned above. Let’s say you want a faster transaction, setting the gas fee to 0.878 Gwei would be ideal.
Proceed to Put the Transaction on Hold: After you have decided the gas fee, put the transaction on hold and track it on Etherscan to see whether it has been fulfilled or not.
How to Use Gas Fee Trackers Effectively
Pick a Gas Tracker You Trust
You should check gas trackers like Etherscan, GasNow, and ETH Gas Station, as they are well-respected and give real updates on gas fees.
Observe Live Performance
Watch the currently updated gas price indicators in Gwei. Most of these trackers classify the fees that are in low, average, and high ranges so that you know what gwei base to fee to select depending on how urgent your transaction is.
Get Notifications
Some trackers enable you to get alerts. These notifications can signal you when gas prices decline to a particular target level, thus optimizing your time of purchasing these vastly priced coins.
Examine Past Account Activity
Examine past trends of gas fee trends to see periods that are lower or higher, and thus estimating average gas expenses throughout the month for better planning for peak times.
Install Extensions
Download Blocknative’s Gas Extension and Tools so you can leave notifications on whilst browsing. It may come in handy for people that do frequent transactions.
Look at Network Traffic
High usage hours are often associated with high gas expenses. Use the tracker to monitor the network situations and prefer making transactions at off-peek hours.
Choose the Right Fee
From what you gathered in the tracker, select a gas fee that works for you. A lower fee will result in slower transaction completions, while a higher fee will expedite the process.
Factors Affecting Gas Fees
Various elements determine gas charges on a blockchain network like Ethereum. The most important include:
Network Congestion
- High Demand: A lot of transactions get processed at once, so gas prices rise because there is a limit on the amount of blocks that can be processed.
- Low Demand: Gas fees also fall with decreased activity in the network.
Transaction Complexity
- Simple Transactions: Sending ETH via basic methods is generally cheaper as it consumes less gas.
- Complex Transactions: Complex actions such as using smart contracts need more resources and, thus, consume more gas.
Gas Limit
- Set by Users: Individuals can set a gas limit which is the maximum amount of gas a user can spend on a transaction.
- Impact: When the limit is higher, depending on the complexity of the transaction, total fees may also be higher.
Base Fee and Priority Fee (EIP-1559)
- Base Fee: The base fee is a mandatory minimum amount a user must pay, regulated according to the congestion of the blockchain network.
- Priority Fee: This is an additional free to speed up the transaction processing order.
Ethereum Upgrades
- Protocol Changes: Ethereum 2.0 and other upgrades look to improve level of scaling and gas fees.
Market for Gas Prices
- Bidding for Speed: The Users willing to pay higher gas prices will have their transactions processed faster to get their speed requirements. This allows gas prices to be freely traded on an open market.
Other Considerations
- Market Conditions: Gas fees together with the volume of transactions can be impacted by the general condition of the cryptocurrency market.
- Network Attacks: Here and there, spamming attacks on the network infrastructure can cause a drastic increase in gas prices.
7 Ways to Reduce Ethereum Transaction Fees
By the hour, Ethereum gas costs can strip you off a decent part of your earnings. But luckily, there are ways to reduce or completely avoid them. Here are some helpful techniques:
1. Try Conducting Transactions During Off-Peak Hours
Gas costs tend to fluctuate during different times throughout the day, drastically increasing during peak hours and reducing during off-peak hours.
Weekends and late in the night are known to have reduced network activity, thus lowering your fees.
By analyzing Ethereum gas prices using historical charts, you can figure out when to make transactions in order to cut down on fees.
2. Use Platforms Offering Fee Discounts
Some platforms provide rebates to help cut costs. Take Balancer for example, who provide gas refunds on Ethereum transactions of up to 90%. KeeperDAO combines transactions by multiple users allowing for cheaper gas fees.
3. Opt for The Most Cost Efficient Transaction Type
Not all Ethereum transactions require the same gas. Always spend some time comparing gas prices on different transaction types to figure out which type has the lowest fee.
But always remember to opt for security–risking your account just to save a couple of bucks is a horrible idea.
4. Anticipate High Fees Online Due to Network Congestion
Gas fees are often directly impacted by the congestion in the Ethereum network.
During busy periods or peak times, costs of transactions tend to go higher and face delays.
To go around this, monitor real-time congestion levels with the help of Etherscan’s Gas Tracker or by checking the mempool which indicates the pending transactions. Executing trades during less congested times will save you money.
5. Utilizing Gas Tokens
Gas tokens enable users to decrease costs by keeping inexpensive gas for later use. These tokens, including Chi Gas Token, are used for buying when gas fees are at the lowest, and redeemed when the cost turns higher. This is an ideal method for people who frequently use Ethereum.
6. Gas Fees Require Estimating Prior to Transacting
Before making a transaction, be sure to have these two tools: Gas Now and Etherscan’s Gas Tracker.
With their powerful features, you can calculate estimated gas fees before doing anything. These tools can enable price estimates in real-time to make sure you do not overpay, and if need be, adjust your timing.
7. Transitioning to Ethereum 2.0
With the new upgrade comes the Proof-of-Stake (PoS) mechanism while getting rid of the traditional Proof-of-Work (PoW) system completely.
Proof-of-Stake has less gas fees since it does not require miners to solve tricky computations. Now, with Ethereum 2.0 you can experience low or even close to no transaction fees.
Conclusion
Tracking gas fee analytics is crucial to all, especially blockchain investors and users on Ethereum platforms. Grasping conditions such as network congestion, transaction complexity, and gas price market enables informed decisions that help you minimize costs.
Trusted gas fee tracking apps like Etherscan, GasNow and ETH Gas Station help view real-time data, set alerts, and analyze historical data. Using best practices such as American network minimum times and appropriate gas limits guarantees economy.
By applying these strategies and using tools effectively, the challenges presented by fluctuating gas rates is handled efficiently, thereby improving the blockchain experience.
