Ethereum Gas Prices for Not the Dummies
So, if you have been following our blog or a crypto user, you will not be unfamiliar with Ethereum gas prices. However, did you know there is a time of day every day that the gas prices are the lowest? Read on and learn about Ethereum gas.
What is Ethereum Gas?
Gas is basically the transaction costs on the Ethereum blockchain. As all the good things in life are, Ethereum gas prices are not fixed and the gas needed for each transaction is based on the complexity of the exchange. The minimum gas requirement is 21,000 gas which is required for every transaction. However, if you had a complex transaction such as the ones used by DeFi, it could cost up to 1,000,000 gas.
Gas is essentially the costs or fees for making transactions on the Ethereum blockchain. The tricky part is that Ethereum gas prices aren’t fixed—the amount of gas required for each transaction depends on how complex the exchange is. For example, a simple transfer could cost you 21,000 gas (the minimum requirement for every transaction). On the other hand, a more complicated one, such as the ones used in decentralized finance (DeFi), could set you back 1,000,000 gas.
Generally speaking, Ethereum gas fees are determined by the miners and the economics of it. The supply and demand is simple, “Gas limit” is the amount of gas fee you are willing to pay. Setting it to a higher amount will entice the miners to work on the transaction and on the other hand if the gas limit is set too low, the miners may not have the incentive to work on the transaction.
Why the gas system?
The short answer is that the gas system was a system invented to distinguish computational costs and other costs and expenses and it also acts as an incentive for miners to participate in the Proof-ofWork (PoW) system. The more miners there are, the more efficient and secure the system is since the PoW system depends heavily on the hash rate.
To attract more miners into the system, the developers have to ensure that Ethereum mining is as profitable and as alluring as it can be. On the Ethereum blockchain, there are two ways miners make money. Basically, it is also a system to motivate miners to actively participate in the Ethereum ecosystem.
Best Time of Day for Low Gas Fee?
The busiest times and therefore, the most expensive times, are from 8 AM to 1 PM (EST). This comes as no surprise because Europe and the US are all fully awake and at work during that period. By contrast, the least busy time is between midnight to 4 AM (EST) —the time the people in the US are asleep, Europe is just about to start their day, while Asia is finishing up their workday.
This means that the best time to make an ETH transaction, therefore, is on a Saturday or Sunday—that’s when gas prices are at the lowest. On the other hand, the worst times are on Tuesdays and Thursdays, where the network is at its busiest and the gas prices are at their highest.
|Day||The time when ETH Gas is lowest (EDT/EST)|
|Sunday||2 AM to 3 AM|
|Monday||1 AM to 2 AM|
|Tuesday||6 AM to 8 AM|
|Wednesday||11 PM to 7 AM|
|Thursday||1 AM to 3 AM|
|Friday||10 PM to 8 AM|
|Saturday||2 AM to 3 AM|
Now that you know what time is the best to execute your trades or make your Ethereum transaction. If you want to buy Ethereum or wish to sell Ethereum that you have you may do so here in Bitprive.
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Disclaimer: The content herein is not, and is not intended to be, legal, financial, investment, or other advice.
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