Beginner question about transaction fee

[jrrsparkles]

Main Question

Assuming I hold 0.001 ETH mainly for a gas fee only and the value was 0.56$ then price surge up, is the increment going to be on the Sats? E.g ( 0.002 ETH ) or the increment is going to be on the value? E.g 0.001 ETH = 1.06$?

Firstly, there is no connection between transaction fee and value of a crypto but logically whenever the market rises more people move their cryptocurrencies from one to another which results in clogging of the network so high fee will become the result where as simply if the price of ethereum increase and there is no increase in the network traffic the value of fee remains same in terms of ethereum and in terms of fiat you can calculate it on your own.

[SquallLeonhart]

The smallest unit of Ethereum is called Gwei, not Sat. However, the value of Gwei, which is the gas required to send an Ethereum transaction, changes constantly depending on the state of the network. Currently, the value of gas required for an Ethereum transaction is 17 Gwei.

The value of Gwei ranges from 3 to 50 sometimes depending on the state of the network. Therefore, the required value of Ethereum varies according to the value of Gwei, and this necessarily leads to a difference in the value of the required gas according to the price of Ethereum as well.

Therefore, to reduce the transaction fee, you must constantly monitor the number of Gwei required for gas and choose the times when this value is low.

Right. Sats are for BTC but I think it's not its smallest form. I know there is still beyond it and I think its called milibit or minibit ,something like that. The transaction fees of all cryptos are not fixed but it changes depending on the activity of the network. If it's heavy loaded or congested then the fees are expected to rise but if it's the opposite, we can also experience to have a lower fees.

There is a site to check the fees of ETH, I think its called gas station. We can check the fees there before we transact if we want to save but based on my observation, ETH transaction fees are lesser on 12 to 1 am. It does make sense since many people are already asleep during these times.

[Yamifoud]

Transaction fees may vary depending on the network load, not on the price, it will up and down as well but never confuse sats and Gwei.

Yes, it was very unfortunate that the ETH gas fee (Gwei) is high compared to before the upgrade. We are really disappointed about it and Mr. Vitalik already knows about this but never had the chance to change it and give the favor to the users. This is big deal actually for small investors and sometimes it happens that we send funds that are smaller amount than the transaction fees.

[Cvetik56]

Yeah, ETH is not the best coin to make consistent transactions right now. I prefer to use LTC or TRX for that, they are way cheaper. And about ETH - Vitalik said himself that high fees are the big problem, and he's gonna find a way to fix it, but how and when - it's the big question.

[Adbitco]

Though your question isn't clear enough..
If I may understand you correctly, your value in Eth does not increase for any reason rather it only increase in dollars value. So if you had 0.001 ETH till 2 to 3 years your fractions remains the same at a time the value keeps increase or decrease ( this determines the increase and decrease in price of eth at the moment). However, gas fee must not remain the same since it varies almost all time, if you are sending eth only it should be around $0.78 to $1 as gas fee but when sending an eth token you should be spending around $2 or $4 depending on quantity of what you are sending out although the ethgas station always varies.

[_BlackStar]

Though your question isn't clear enough..
If I may understand you correctly, your value in Eth does not increase for any reason rather it only increase in dollars value. So if you had 0.001 ETH till 2 to 3 years your fractions remains the same at a time the value keeps increase or decrease ( this determines the increase and decrease in price of eth at the moment). However, gas fee must not remain the same since it varies almost all time, if you are sending eth only it should be around $0.78 to $1 as gas fee but when sending an eth token you should be spending around $2 or $4 depending on quantity of what you are sending out although the ethgas station always varies.

The asset has not changed and that has been explained, but its value will continue to fluctuate depending on the demand and supply of prices in the market. In other cases, the OP might get some other benefit if he stakes where as the APR percentage of his assets will depend only on the staking platform itself.

Meanwhile for transaction fees, OP can always monitor fees in Gwei on this site: https://ethgasstation.info/

[slaym]

Is a 30 USD fee to swap stETH to ETH for real?!?!?  It's what metamask is telling me when I try making a swap.  How does a swap cost 30USD!!!!!!

[Apocollapse]

Is a 30 USD fee to swap stETH to ETH for real?!?!?  It's what metamask is telling me when I try making a swap.  How does a swap cost 30USD!!!!!!

You need to know if every swap platform will change fee, you should choose the platform that charge the fees is cheap, I think pancakeswap might be a good option. Don't forget to customize your own slippage tolerance, just choose either 1-2% or lower than that.

No need to worry even your transaction doesn't succeed due to use low fee, because any transaction will failed after 14 days and back to your wallet.

[lobo13hf]

Is a 30 USD fee to swap stETH to ETH for real?!?!?  It's what metamask is telling me when I try making a swap.  How does a swap cost 30USD!!!!!!

It's real. Etherem blockchain sometimes gets congested and that's why you have to wait until he feels will be going down again. If you are thinking that fees was non sense thing and then you can go to the cex. I remember some cex were also accepting stETH too. You shall avoid to swap when the blockchain was congested. that reminds me of a swap that cost a few hundreds of dollars in ethereum blockchain. You shall be aware if the fees can go up anytime based on how busy the network is.

[JunkieMiner]

The fee is not that much as that was before 2022 and before the recent bear market, we have seen it that more than $2 fee was there when the etherium was above $3000 back in 2021 and 2022 and we have seen as many times that it goes much lower in the time that is now. So, I hope etherium will go high and the fee will be not that much as previous.

[maxtra]

Main Question
Assuming I hold 0.001 ETH mainly for a gas fee only and the value was 0.56$ then price surge up, is the increment going to be on the Sats? E.g ( 0.002 ETH ) or the increment is going to be on the value? E.g 0.001 ETH = 1.06$?

The increment of your 0.001 ETH holding will be based on the value of the coin in USD, so if the value of ETH increases from $0.56 to $1.06, the value of your holding will also increase accordingly. It will not increase in the amount of ETH, it will remain 0.001 ETH.

[Prince Malik]

I don't really know what make the fees problem for ETH take very long time to get solved, but if you want to trade eth in decentralized exchanges i suggest that you bridge some ETH to layer 2 solutions like arbitrum or optimism, you will certainly be happy by the ultra low fees that they provide, personally i use arbitrum for more than a year and very happy with it

[tvplus006]

Right now I can see that Ethereum has fee is very high and it's annoying, I thought after the Ethereum upgrade the gas will be lower? Ethereum is at 1500$ imagine what will happen at 10,000$ per Ethereum...

The cost of the transaction fee depends on the network bandwidth, the complexity of the operation and the price of ETH. In the second half of 2023, it is planned to hold a fork of Shanghai, which is aimed at reducing commissions in the network. Vitalik Buterin promises that this fork will increase the throughput to 100,000 transactions per second, which will significantly reduce the commission on the network.