The cryptocurrency market has been frequently fluctuating recently due to various issues
In the context of alternating recoveries and declines, Bitcoin’s price has risen, driven by expectations that the expansion of the fiscal deficit following the U.S. presidential election will increase demand for Bitcoin.
Both American presidential candidates plan to implement additional tax cuts and large-scale investments, which will lead to an expansion of the fiscal deficit. Consequently, the value of the dollar may decline, further increasing the demand for alternative assets such as Bitcoin and Ethereum.
Overall, although the cryptocurrency market has experienced volatility, it still shows positive signs. As experts express optimism, public interest in the future prices of cryptocurrencies is also increasing.
Focusing on Ethereum: Not just a Bitcoin alternative
Today we will focus on Ethereum, the second largest and most influential cryptocurrency in the blockchain field. We will explore the value of Ethereum and important issues regarding Ethereum fuel fees (gas).
Ethereum is the second most well-known cryptocurrency after Bitcoin and represents altcoins. Unlike Bitcoin, which symbolizes digital gold, Ethereum is seen as a representative of blockchain coins with technological innovation.
Ethereum supports the development and operation of other projects through its decentralized applications (DApps), so many tokens are built on the Ethereum network.
Blockchain technology has security, speed, and scalability across multiple domains including transactions, contracts, emails, and investments, making its application potential limitless. Some experts even predict that Ethereum may have the chance to outpace Bitcoin in price in the future.
What are Ethereum Gas fees?
Just as well-known as Ethereum is its concept of fuel fees (gas). Anyone who has used the Ethereum network has almost certainly faced the issue of high gas fees.
In simple terms, gas is the fee generated when executing transactions on the Ethereum network. In the crypto realm, 'mining' produces 'fuel,' and the cost of this fuel is gas.
The unit of gas is gwei, 1 gwei = 0.000000001 ETH.
Therefore, an increase in gas prices means an increase in transaction fees. Theoretically, gas is a unit that measures the amount of computation required to execute a transaction or smart contract. When you transfer Ethereum, execute contracts, validate transactions, or write to the blockchain, gas fees are incurred.
Additionally, if you engage in derivatives trading, gas fees may also be incurred, so understanding this is very important for users.
The concepts of Gas Limit and Gas Price
Ethereum gas fees consist of two parts: Gas Limit and Gas Price.
Gas Limit is the maximum gas units allowed for the transaction, which users can set themselves. If set too low, the transaction may not be completed; if there is excess gas, it will be refunded in ETH.
Gas Price is the price you are willing to pay per unit of gas. It varies based on the complexity of the transaction; the more complex the transaction, the higher the gas price.
Gas fees are basic knowledge that all Ethereum users and investors should understand. Since this is a factor that directly affects the cost of use, how policy changes and technological upgrades impact gas fees will also indirectly affect the price of Ethereum.
🔸 Binance transaction fee 20% discount
Register on Binance through the recommended link to enjoy up to a 20% discount on trading fees. Be sure to use that link to start your investment journey.
Even existing users can enjoy a 20% discount as long as they meet the following five conditions:
Already registered a Binance account
Never accepted a referral invitation
Did not use any Binance services in the past 180 days
Log in through the referral link and see the confirmation message
Click [Bind Now] to activate referral binding and fee discounts
This is the complete introduction to Ethereum Gas fees. If you are considering investing in Ethereum, it is recommended to start trading on the world’s largest exchange, Binance, through the referral link to enjoy fee discounts.
