Gas Fee
The cost paid to a blockchain network to process a transaction.
Also called: gas · network fee · transaction fee
In plain language
Gas compensates the network for computation and block space. Fees are set by demand, so they spike when the network is busy.
On decentralized exchanges gas is charged per transaction regardless of trade size, which makes small trades disproportionately expensive.
Fees are paid whether or not a transaction succeeds. A failed swap still costs gas.
Why it matters
Gas is a fixed cost per trade rather than a percentage. It sets a practical minimum trade size below which the fee consumes the expected profit.
Common mistakes
- Ignoring gas when calculating whether a small on-chain trade is worth making.
- Trading during network congestion without checking current fee levels.
Keep exploring
These concepts are connected. Understanding one usually makes the next one easier.
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A crypto asset designed to hold a fixed value, usually one US dollar.