Member-only story
How to Avoid High Transaction Fees When Dealing with ERC-20 Tokens
Pay a fraction of the cost to buy, sell or swap tokens at a much faster speed.
Non-members can read the full story here.
You search for a micro-cap to buy and have no luck on your preferred exchange.
It’s an ERC-20, i.e. one that runs on Ethereum. Off you go to a DEX that’s compatible with the network.
As you prepare to swap from ETH to this ERC-20 token, up comes the transaction (including the gas) fee:
$15…and you’re only after about $100 worth of this micro-cap.
This can’t be right. Let’s try a different exchange…$17 fee.
OK, here we go again with these high fees on Ethereum.
Fortunately, there are two popular solutions: Polygon PoS and (to a lesser extent) BNB Chain.
Just two? Don’t worry, I didn’t forget the third option: Layer-2s (L2s). I will touch on these later and share a separate article covering these in further detail.
Yes, some of you already knew this. Still, most people trying to buy these tokens felt obliged to pay exorbitant fees when transacting directly on the Ethereum blockchain, thinking they had no alternative.
Just my thoughts as I speak from experience.
