Ethereum has priced most of us, small retail investors, out of DeFi with its ridiculously high gas fees. So much so that only the rich can use the chain now.
But you shouldn’t let yourself be a victim of this rigged system.
In this post, I would be sharing with you the different ways you get around Ethereum high gas fees. So that you can go about your normal crypto business and get to keep more of your profits.
How to avoid paying Ethereum ridiculous gas fees.
Here are a few tricks I have been using myself to avoid paying excessive gas fees for ETH and ERC20 tokens transactions, and I hope you will find them useful too.
- Just HODL
- Use instant crypto exchanges
- Use Ethereum layer 2 solutions
- Use alternative chains
1. Just HODL
One thing Ethereum fees have done to many is force them to HODL.
While this has been beneficial to some who are forced to HODL through the bull run and watched their money grow, it’s been frustrating for others who really need to make transactions.
But you can use this to your advantage by just holding your ETH and ERC20 tokens and never transferring or transacting with them on the Ethereum mainchain.
I have been holding some ETH and ERC20 tokens for a long time now mostly due to the fees involved in transferring them out of my wallet.
And as a result, I have held long enough to watch their price increase exponentially during the bull run.
The story would be different if it were a bear market though. And that’s the risk we take.
So, just use the high Ethereum fees, to teach yourself how to HODL and develop your “diamond hands”.
2. Use instant crypto exchanges
This works best when your ETH or ERC20 tokens are on an exchange, and not in your wallet.
- First, convert your ETH on the exchange to BNB, XRP, TRX, BCH, DASH, or any of the many coins with low transaction fees. For the purpose of this guide, we will be using BNB.
- Now go to our token swap page and initiate a swap from BNB to ETH and follow through with the process. Or simply use the exchange widget below, without leaving this page.
- Send the BNB from your exchange account to the address on the token swap page.
- Then provide your Ethereum wallet address where you want to receive the ETH once the conversion is complete.
- Wait for your transaction to confirm and you will have the ETH in your designated wallet.
That’s it. You have avoided paying the high Ethereum transaction fees with this simple workaround.
3. Use Ethereum layer 2 solutions
You will not pay ridiculous gas fees if you avoid using the Ethereum mainchain and use layer 2 solutions like Arbitrum, Polygon, and Loopring instead.
But to use Layer 2 solutions, you need to first move your ETH or ERC20 tokens from the mainchain and onto their platform.
There are several ways you can do this to avoid the gas fees.
First, if your funds are on an exchange, then use the instant crypto exchanges discussed in option 2 above.
However, instead of swapping to ETH, you need to swap to the native token of the platform, e.g MATIC for Polygon, LRC for Loopring, etc.
Secondly, if your funds are in your wallet, then you have to use a bridge to move them from the Ethereum mainchain onto the layer 2 platform and pay a one-time Ethereum gas fee.
But if the one-time fee is still too much to accommodate, then you have just HODL and consider using other sources of funds.
For example, you can crypto with your bank card on an exchange and transfer it to a layer 2 platform.
The transaction fees on layer 2 platforms are negligible, and everything you can do on the Ethereum mainchain can be done there too.
4. Use alternative chains
Ethereum is not the only good smart contract platform out there for your staking, farming, lending, NFTs, and all things DeFi.
Some popular smart contract platforms you can use instead of Ethereum include, Solana, BSC, Heco, Avalanche, etc.
The fees on these chains are negligible and they’re faster than Ethereum.
However, some people will argue about their level of decentralization, but that’s outside the scope of this post.
The most important thing is that they all work perfectly fine and are popular among most crypto users.
Moving ETH and ERC20 tokens around is one transaction you don’t do in a hurry, especially because of the transaction fees.
In this post, we have discussed various ways you can avoid paying the ridiculous Ethereum gas fees.
- just hold your ETH and ERC20 tokens and avoid transferring or transacting with them directly on the Ethereum mainchain entirely.
- using instant crypto exchanges to move your ETH and ERC20 tokens from an exchange to any wallet.
- switch to using layer 2 solutions such as Polygon, Arbitrum, Loopring, for your DeFi activities.
- use alternative smart contract platforms like Solana, Avalanche, BSC, Heco, etc.