First things first, this post is targeted mainly towards the newbies who recently entered the space and are trying to learn things in an ELI5 way.
So, now that you’ve hopped on the Ethereum Ecosystem, you’ve come to realize that you need to pay this thing called **gas fees** whenever you want to do a transaction – Be it a wallet to wallet transfer, withdrawing your coins from an Exchange to MetaMask Wallet, or even a simple Uniswap Transaction. By this I mean, a miner confirms your transaction by ‘mining’ it and adding your transaction to an existing block.
# What is Gas?
Put in a very simple way, Gas fees are a price you pay every time you want to interact with the Ethereum Blockchain for transactions like wallet transfers or Token Swap on Decentralised Exchanges.
# Various Terms Used
So the way the gas fees work; there’s a tradeoff between the time taken to confirm a transaction and the amount of fees you pay; *More the fees, lesser the transaction time, and vice-versa*
[A typical custom gas menu you get when you decide to tweak the gas settings](https://preview.redd.it/wa0rdnjw77c71.png?width=348&format=png&auto=webp&s=95c66b0ac88e63dbd38d5c92a0bd8df0007dc753)
>**Transaction Fees = Gas Price * Gas Limit**
# Gas Limit:
The Gas Limit is basically the number of units of gas you would like to spend on a transaction that is typically fixed for certain calls to the blockchain. More complicated transactions, involving smart contracts, require more computational work so they require a higher gas limit than a simple payment. *Basically think of gas limit as the number of cylinders of gas if you’re having trouble visualizing it.*
[A Screenshot of the Gas Limit Schedule from the Official Ethereum Yellow Paper](https://preview.redd.it/2hypl51597c71.png?width=787&format=png&auto=webp&s=de9a41cf7145ada6919bf7083b374c2e51958fc3)
# Gas Price:
So, the gas price essentially is the price per unit of gas you’d prefer to pay calculated as the amount of Ether. Since the price per unit would be very small, they devised a term called ‘Gwei’
>**1 Gwei = 0.000000001 ETH**
As an analogy, Gwei is similar to Satoshis when it comes to Ethereum. It is the smallest non-divisible unit of an Ether. *Imagine it to be the price you pay per cylinder of gas to get a quicker understanding*
[The different options of choosing the gas price](https://preview.redd.it/i6paofola7c71.png?width=669&format=png&auto=webp&s=a42bb583c2253aa212365cb89dcf3043683a0cbf)
# How to select the gas price?
Now that you know what Gas Limit and Gas Price are, you need to know how to select the appropriate gas price for your transaction.
*The higher you pay for the gas price, the faster your transaction will be picked up by a miner and vice-versa*
Your MetaMask wallet will typically show the gas prices for 3 standard speeds (Slow, Regular, Fast)
[The 3 standard modes](https://preview.redd.it/se565lzab7c71.png?width=572&format=png&auto=webp&s=4485adabe8a579b8d01213a03225b18453429559)
So, if you’re trading live on a DEX and you can’t afford to wait for a lot of time to ensure your orders or swaps get filled soon, it’s better to pay a bit more in Gas Price than the Fast Option. Whereas if it is a swap or a transaction that could wait for a longer time, you could get away with using a lesser price than the Slow option if you are cool with waiting until the transaction is approved.
# How to save gas fees?
So now that you entirely understand what gas fees are, the crux of the issue is how do you ensure you don’t end up paying a lot in gas fees? With the recent shitcoin mania, the gas prices spiked to upwards of 1000 Gwei during the peak of the Bullrun (To put into perspective the average gas price is around 10-30 Gwei nowadays).
Use [https://ethereumprice.org/gas/](https://ethereumprice.org/gas/) to constantly monitor the gas price trends both intraday and on a weekly basis
[The intraday gas prices visualized](https://preview.redd.it/iidv19o7e7c71.png?width=1285&format=png&auto=webp&s=11a75e8002b560c529d81f1aa945e5d5806e91e0)
[A heatmap of all the hourly gas prices throughout the week](https://preview.redd.it/hs1ac4bkc7c71.png?width=1382&format=png&auto=webp&s=e56c98c443ea06368b50f4a4a0d9a97f14eee7cf)
I use this website to monitor at what time I could potentially do my swaps, redeem my liquidity pool share or even borrow or lend on De-Fi Platforms. Typically the gas prices rise as we head from Monday till Friday and they taper down very steeply during the weekends and then gradually buildup towards the high price days.
**It is advisable to do your transactions on weekends and never during Thursdays and Fridays since the gas prices are typically high during these days in most of the cases**
A special tool for the NFT Collectors and Creators I discovered is [https://pumpmygas.xyz/](https://pumpmygas.xyz/), which helps you see the price you’d have to pay to mint and receive bids on the NFTs
[A platform depicting the average minting and auction prices for the gas fees on the NFT platform](https://preview.redd.it/bucqzjzyd7c71.png?width=1901&format=png&auto=webp&s=c6d930687765e84f2cfe20ba784e48bea6f4e942)
If you are looking to reduce gas costs for your ETH you are able to set the price of your own gas fees and choose the priority level of your transaction. Miners will work on and execute transactions that offer a higher gas price, as they get to keep the fees that you pay and will be less inclined to execute transactions with lower gas fees set.
*However if you set the amount of gas too low you will not be able to send your ETH as you will run out of gas, you would then have to resubmit your transaction. You will lose whatever you paid in ETH in case your gas was expended but your transaction didn’t go through*
[https://etherscan.io/](https://etherscan.io/) – After you send in a transaction, you can always track the status of your transaction on this website using the Transaction ID/Hash
I hope you now have a basic yet clear understanding of what gas fees are and how they work.
Have a nice experience in the Ethereum Ecosystem while you explore the wonderful world of dApps, NFTs, and De-Fi !
* [https://ethereum.github.io/yellowpaper/paper.pdf](https://ethereum.github.io/yellowpaper/paper.pdf) (The Official Ethereum Yellowpaper)
A Few Helpful Websites: