What is the Gas Fee in Cryptocurrency Transactions? The Complete Guide to Avoid Failures

In cryptocurrency transactions using blockchain, everyone will encounter the concept of “gas fees” at least once. Gas fees are incurred when sending tokens, executing smart contracts, linking DApps, and performing any action on the network. However, surprisingly few people have an accurate understanding of why gas fees are necessary, how they are calculated, and how to prevent transaction failures. This article provides a detailed explanation of how gas fees work in cryptocurrencies and offers practical advice to facilitate smooth transactions.

What Are Gas Fees: The Basic Mechanism of Cryptocurrency Networks

Gas fees are the transaction fees paid to miners (or validators) for processing and confirming transactions on a blockchain network. They are also known as “miner fees.”

Specifically, gas fees serve as rewards for maintaining the network and ensuring security. Just as a car cannot run without gasoline, a blockchain network cannot operate without computational resources. When executing transactions, significant computer processing power is consumed, and users pay miners gas fees as compensation.

Many beginners are initially confused by the concept of gas fees. Understanding that they are more than just a fee—being integral to the network’s operational mechanism—is the first step toward more efficient transactions.

How Gas Fees Are Calculated and the Tokens Used by Different Blockchains

Gas fees are calculated using the following formula:

Gas Fee = Gas Price × Gas Used

There are two key elements here:

1. Gas Price (displayed in Gwei): This can be set freely by the user initiating the transaction. Setting a lower gas price may result in miners prioritizing transactions with higher fees, leading to longer confirmation times or, in the worst case, the transaction not being processed. Conversely, setting a higher gas price during network congestion can ensure faster processing.

2. Gas Used: This is the amount of computational effort required to execute the transaction or smart contract. Simple transfers and complex DApp operations require vastly different amounts of gas.

The token used to pay for gas fees varies across blockchain networks. Refer to the table below:

A key point is that in many blockchains, the native token of the network is used to pay for gas fees. Some Layer 2 solutions or subnets may use different tokens; for example, in Arbitrum, ETH is used instead of ARB for gas, and some Avalanche subnets use dedicated tokens.

Common Causes of Transaction Failures: Insufficient Gas and Network Congestion

A frequent issue faced by beginners is transaction failure due to insufficient gas. Consider this typical scenario:

You have $100 worth of USDT in your Ethereum wallet but only $1 worth of ETH. You attempt to swap USDT for ETH, but since gas fees are paid in ETH, the transaction fails because you don’t have enough ETH to cover the gas. In other words, in cryptocurrency transactions, you need to hold not only the transaction amount but also enough native tokens to pay for gas.

Other causes of transaction failure include:

Network Congestion Delays: When the blockchain is congested, processing transactions takes longer. Setting a higher gas price can prioritize your transaction. If the gas price is too low, your transaction may remain pending indefinitely.

Rapid Changes in On-Chain State: Especially common in DeFi transactions. For example, if the token you are trying to send has already been spent in another transaction, your transaction becomes invalid and fails.

To reduce the risk of transaction failure, it’s important to monitor network conditions and ensure you hold sufficient native tokens for gas. As a general guideline, keeping at least 0.01 ETH in your wallet for Ethereum is recommended.

How to Address Insufficient Gas and Efficient Solutions

When facing insufficient gas fees in cryptocurrency transactions, several practical solutions are available:

Method 1: Add More Native Tokens

The simplest approach is to deposit additional native tokens to cover gas fees. For example, if you want to swap USDT for ETH on the TRON chain but lack TRX (the gas token), you can send TRX from an exchange or another wallet to your current address. Alternatively, you can ask a friend to send TRX directly.

Method 2: Use OTC or P2P Services

A more convenient method is to utilize P2P or OTC services within your wallet. For example, Bitget Wallet’s “QuickBuy” feature allows you to directly exchange fiat currency for gas tokens within the wallet. This approach enables immediate resolution without multiple steps on external exchanges.

These options help quickly overcome common obstacles like insufficient gas, allowing you to continue your transactions smoothly.

Bitget Wallet’s Gas-Free Feature to Reduce Transaction Costs

To make cryptocurrency trading more convenient, many wallet solutions offer innovative services. Among them, Bitget Wallet’s “Gas-Free” service is particularly noteworthy.

This service includes two useful features:

Feature 1: Instant Gas

Users can temporarily “borrow” gas fees without holding the mainnet token in advance. This allows you to use your wallet’s tokens for transactions while separately covering gas costs, significantly improving capital efficiency.

Feature 2: GASU Token Cashback

By participating in activities within Bitget Wallet, you can earn GASU tokens. After completing transactions, you can use these GASU tokens to reimburse gas fees, effectively reducing your transaction costs.

Currently, this gas-free service supports multiple blockchains, including Ethereum, Tron, BNB Chain, Polygon, Base, and Arbitrum, with plans to expand further.

Additionally, to promote the TON ecosystem, Bitget Wallet is offering gas fee subsidies for transactions on the TON chain during the campaign period. Users can enjoy gas-free transfers, swaps, and DApp interactions on TON, with subsidized TON tokens credited to their reward accounts and viewable in “Earning Center > Reward Account.”

Summary: Smart Management of Gas Fees in Cryptocurrency Transactions

Gas fees are a fundamental and unavoidable aspect of blockchain transactions. Understanding how they work enables you to prevent transaction failures and ensure a smooth trading experience.

While insufficient gas fees are a common issue for beginners, proper knowledge and strategies can help you avoid them. By leveraging innovative services like Bitget Wallet’s gas-free and instant gas features, as well as GASU token programs, managing gas fees becomes much easier, leading to a more comfortable trading experience.

For more information or support, feel free to contact Bitget Wallet through official channels.

About Bitget Wallet

Bitget Wallet is one of Asia’s leading global Web3 wallets, used by over 30 million users worldwide. It offers comprehensive features including asset management, intelligent market data analysis, swaps, launchpad, inscriptions, NFTs, DApp integration, and token revenue centers.

Supporting over 100 blockchains, hundreds of EVM-compatible chains, and more than 10 million cryptocurrencies, it aggregates liquidity from major DEXs and cross-chain bridges to enable seamless crypto trading.

For more details about Bitget Wallet, visit the official website, Twitter, Telegram, Discord, and other channels.