How to Avoid High Gas Fees When Trading Crypto
Why Gas Fees Matter in Crypto Trading
Gas fees are the transaction costs paid to network validators to process and confirm your transactions on a blockchain. On Ethereum mainnet, gas fees can range from a few dollars to tens of dollars per transaction during normal conditions and spike to $100 or more during periods of high network demand. For active traders and DeFi users, gas fees represent a meaningful ongoing cost that directly affects trading profitability.
Gas fees are not fixed: they are a market. At any given moment, the fee required for your transaction to be confirmed within a reasonable timeframe depends on how many other transactions are competing for block space. During periods of high activity (major NFT launches, DeFi protocol events, market volatility spikes), competition for block space drives fees up significantly. During quiet periods, fees can be very low.
Understanding when and how to minimise gas fees is a practical skill for any active on-chain trader. The strategies range from timing trades to low-fee periods, to using Layer 2 networks where fees are a fraction of mainnet costs, to selecting the right order types and transaction parameters.
When Are Gas Fees Lowest?
Gas fees on Ethereum follow predictable patterns related to trading activity across global time zones. The lowest fee periods are typically:
Weekends, particularly Saturday and Sunday mornings in the US (which correspond to Sunday and Monday in Australian time). US trading activity drives a significant portion of DeFi volume, and when US markets are quiet (weekends, major holidays), Ethereum gas fees tend to be lower.
Low-activity overnight hours in the US (which in Australian time corresponds to morning/midday Australian Standard Time). Before the US wakes up and trading activity ramps up, global network demand is at its lowest point.
Tools like the Etherscan Gas Tracker (etherscan.io/gastracker) and the TradingView-integrated gas overlays show real-time and historical gas price data. Checking the gas tracker before executing any non-urgent transaction takes 30 seconds and can save significant fees by choosing a better time.
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Use Layer 2 Networks for Dramatically Lower Fees
The most impactful way to reduce gas fees is to use Layer 2 (L2) networks instead of Ethereum mainnet for your DeFi activities. Layer 2 networks (Arbitrum, Optimism, Base, and others) process transactions off the main Ethereum chain and batch the results back to Ethereum mainnet at intervals. This dramatically reduces the cost per user transaction.
Gas fees on major Ethereum Layer 2 networks are typically $0.01 to $0.10 USD per transaction: orders of magnitude cheaper than Ethereum mainnet. Uniswap is deployed on Arbitrum, Optimism, Base, and other L2s with the same interface and essentially the same token liquidity for major pairs. For most trading activities, using the L2 version of your preferred DEX saves the vast majority of gas costs.
Bridging to a Layer 2 network requires one mainnet transaction (paying mainnet gas once) to move funds to the L2. Once on the L2, all subsequent transactions are cheap. For regular DeFi users, keeping a permanent allocation of ETH on their preferred L2 and bridging additional funds periodically (rather than for each trade) minimises the number of costly mainnet bridge transactions.
Gas-Saving Strategies for Ethereum Mainnet
When you must transact on Ethereum mainnet, several strategies reduce the gas cost.
Set a Custom Gas Price
Rather than accepting the default gas price suggested by your wallet (which is often conservative and includes a premium), set a custom gas price through your wallet’s advanced settings. Use the Etherscan Gas Tracker to find the current “safe” gas price that will confirm within a few minutes, and set your transaction to that level rather than the “fast” price. For non-urgent transactions, setting “slow” gas (which may take 5-10 minutes) can cost 20-40% less than the default.
Batch Multiple Actions
Some DeFi actions can be batched: instead of executing three separate transactions (approve + swap + deposit), certain interfaces allow combining them into fewer transactions. Look for “bundle” or “batch” options in protocols you use regularly. Wallets like Gnosis Safe natively support batching multiple actions in a single transaction.
Time Contract Interactions Carefully
Token approvals are a necessary first step before many DeFi interactions and cost gas. Setting an unlimited approval (the default on many interfaces) means you only pay this approval cost once per token per protocol. Setting an exact approval means you pay the gas again next time. For established protocols, unlimited approvals save gas; for unknown protocols, exact approvals are safer (limited approval risk is covered in the token approvals guide).
Gas Fees on Other Blockchains
Gas fees vary enormously across different blockchains, and choosing the right chain for your activity is itself a form of fee optimisation.
Solana has some of the lowest transaction fees in the industry at under $0.001 USD per transaction, with no distinction between “standard” and “priority” fees for most user transactions. For users who primarily trade Solana-based tokens, using Raydium or Jupiter directly on Solana is far more economical than equivalent activity on Ethereum.
BNB Chain (PancakeSwap) fees are typically $0.05 to $0.20 USD per transaction: much cheaper than Ethereum mainnet but more expensive than Solana or Ethereum L2s. For BNB Chain-specific tokens, PancakeSwap on BNB Chain is the natural venue.
Choosing the right chain for your activity, rather than defaulting to Ethereum mainnet for everything, is one of the highest-leverage ways to reduce overall transaction costs. As the multi-chain DeFi ecosystem matures and bridging becomes more seamless, the ability to route activity to the most cost-efficient chain for any given purpose is increasingly accessible to retail users.
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Frequently Asked Questions
What are gas fees in crypto and why do they spike?
Gas fees are the payments made to network validators or miners for processing and confirming transactions on a blockchain. They spike during periods of high demand when many users are competing to have their transactions included in the limited space of each block. On Ethereum, major NFT mints, DeFi protocol launches, and market volatility events drive gas price spikes.
What is the best time to trade Ethereum to avoid high gas fees?
Ethereum gas fees are typically lowest during Australian daytime hours (weekday mornings, Australian Eastern Time) when US and European markets are less active. Weekend off-peak hours also often show lower gas. Gas price tracking tools like Etherscan's Gas Tracker, ETH Gas Station, and the GasNow API provide real-time and historical data to identify optimal timing.
How do Layer 2 networks reduce gas fee costs for traders?
Layer 2 networks (Arbitrum, Optimism, Base, Polygon) process transactions off the Ethereum mainnet and batch-settle to the mainnet at lower cost. Transaction fees on Layer 2 are typically 10 to 100 times lower than mainnet Ethereum. Most major DeFi protocols have deployed on multiple Layer 2 networks specifically to serve cost-sensitive users.
What are gas fee limit and priority fee settings?
The gas limit is the maximum amount of gas you are willing to use for a transaction (the actual cost varies with transaction complexity). The priority fee (or tip) is an additional payment to validators to prioritise your transaction. Setting a low priority fee reduces cost but may delay confirmation. MetaMask and most wallets allow customisation of these parameters.
How do pending transactions and the mempool affect gas costs?
The mempool is the pool of unconfirmed transactions waiting for inclusion in a block. When the mempool is congested with many transactions, validators include the highest-paying ones first. Monitoring mempool congestion via gas tracker tools helps you decide whether to pay a higher fee for fast confirmation or wait for congestion to clear.
What is EIP-1559 and how did it change Ethereum gas fees?
EIP-1559 (implemented in August 2021) introduced a base fee that is burned (removed from circulation) and a variable tip to validators. The base fee adjusts automatically based on block fullness. This made fee estimation more predictable and reduced fee volatility compared to the previous first-price auction system, though it did not eliminate gas spikes during high demand.
How can traders use limit orders on DEXs to reduce gas costs?
On DEXs that support limit orders (like Uniswap v3 with range orders, or CoW Protocol), you can place an order that executes only when price reaches a specified level. The transaction is only submitted when conditions are met, allowing execution during lower-congestion periods rather than during volatile market movements when gas fees spike.
What alternative blockchains offer low fees for Australian DeFi traders?
Solana, Avalanche, BNB Chain, and Base offer substantially lower transaction costs than Ethereum mainnet. Solana in particular charges a fraction of a cent per transaction, making small trades economically viable. The tradeoff is accepting different security models and ecosystem maturity compared to Ethereum mainnet.
WRITTEN & REVIEWED BY Chris Shepley
UPDATED: AUGUST 2026
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