How to efficiently set transaction fees in the Ethereum Network
Today I will be writing about how you can go about efficiently determining the amount of gas (gwei) that you are willing to pay to conduct transactions on the Ethereum Network. This will be especially important if you intend to get into Ethereum gaming, Cryptocurrency investment or into the habit of purchasing items online with your Ethereum or certain ERC-20 tokens.
How to determine the gas price (gwei) you should use:
Firstly, you should ask yourself three questions.
1. How quickly do I want my transaction to be processed?
2. How much gwei am I willing to spend in transaction costs?
3. Is the Ethereum network currently congested?
Your answer to the questions above will ultimately determine how much you should pay in transaction fees.
Because transaction speeds & how much you need to spend on gwei to obtain that speed is ultimately determined by the amount of congestion in the Ethereum network, it would be very difficult to find the correct values on your own.
Thankfully, there are third-party sites like ethgasstation which provides ‘Recommended Gas Prices’ and a ‘Gas-Time-Price Estimator’ which makes it easier to find the right amount of gwei to use depending on your situation.
Looking at the screenshot above, we can see that if a user were to make a transaction and set a Gas Price of 1, they could expect to wait around 5 minutes & 15 seconds for their transaction to process. For a standard transaction, the Tx (transaction) fee costs roughly 0.017 cents. The price can vary however depending on the maximum amount of ‘Gas Used’.
Typically, if you wish to make a transaction with a ‘Smart Contract’, the amount of Gas required to conduct a transaction is a lot higher compared to standard transactions where Ethereum merely exchanges hands. Generally I don’t touch the ‘Gas limit’ unless the company or user who I am transferring Ethereum to instructs otherwise.
I’ve also found that I can set the gas price to 0.3 gwei and till have my transaction successfully process if I’m not fussed about transaction times and if the Ethereum network is not congested.
If you are unsure about some of the terminology used, I highly recommend MyEtherWallets ‘What is Gas?’ article which explains it very well.
How do you go about determining the amount of gwei that you spend per transaction? Please let us know in the comments below!
Until we meet again,
Grant
This post received a 4.970 SBD (100%) upvote from @upvotewhale thanks to @cryptogrant! For more information, check out my profile!
Good job! Thanks to @cryptogrant you have planted 1.61 tree to save Abongphen Highland Forest in Cameroon. Help me to plant 1,000,000 trees and share my Steem Power to the others. Selfvoting is prohibited, but that should be the reason to spread the world to protect our precious environment. Check out profile of our conservation association @kedjom-keku and the founder/coordinator @martin.mikes to get more information about our conservation program. My current SP is 18382.94. Help me to plant more trees with your delegated SP.
Thanks a lot,
your @treeplanter
www.kedjom-keku.com
I have to Agree! Question what do you guys think about Bitcoin Gold is it faster than ethereum?
I personally haven't used Bitcoin Gold. According to the stats I see on websites, I think that Ethereum is faster, as Bitcoin Gold only averages 121 transactions per hour whereas Ethereum manages 32,917 per hour on average.
I found these stats here: https://bitinfocharts.com/bitcoin%20gold/ & here: https://bitinfocharts.com/ethereum/
Although I'm not sure if it's because there just isn't enough transactions on Bitcoin Gold to test it at peak capacity or if it is due to slow transaction speeds.