The term, gas fee, brings a smile to some people’s faces while others wince when they see it. The former, of course, are the miners, while the latter are the users!
The gas fee is the amount you have to pay the miners to have your transaction included in a blockchain network. It acts as an incentive for the miners to validate your transaction which helps in more ways than one.
It helps the miners pay for the setup and operation of expensive crypto mining rigs that are needed for processing crypto transactions. The gas fee also helps in streamlining the network traffic by prioritising transactions and burning the circulating supply of tokens.
So, if you’re using PancakeSwap, do you need to pay gas fees? If so, how much?
In this article, you’ll learn about:
- Whether you need to pay gas fees on PancakeSwap
- How you can reduce gas fees on PancakeSwap
Do you have to pay gas fees on PancakeSwap?
Absolutely. Regardless of which platform you’re using, if there’s a transaction that needs to be added to the blockchain or if you’re using a smart contract, you need to pay gas fees.
PancakeSwap is no exception on that matter. The only difference here is that PancakeSwap allows you to carry out transactions on three blockchain networks:
- BNB Smart Chain
- Ethereum network
- Aptos network
Depending on the network you’ve chosen to carry out your transactions, you need to pay a different amount of gas fees. You may have to pay a higher gas fee on the Ethereum network than the other two.
This can, of course, be reduced! That is something that we talk about in detail in the next section.
Keep in mind that here we’re talking about the gas fee you’re expected to pay on the platform and not PancakeSwap’s transaction fee which you would have to pay in addition to the gas fee for every transaction.
The two are different as the gas fee is charged by the network to pay its miners while the transaction fee is charged by PancakeSwap as the liquidity provider fee.
Another difference is in the fact that while the gas fee is a bit unpredictable, the transaction fee that PancakeSwap charges is always 0.25% of your transaction amount. Of this, 0.17% goes to the LP token holders, 0.0225% goes to the Treasury, and 0.0575% goes towards CAKE buyback and burn.
How do I reduce gas fees on PancakeSwap?
Depending on the network you’re using to carry out your transaction, you might find the gas fee to be a bit on the higher side.
Why gas fees are high?
When you see the gas fee to be on the higher side, it’s usually due to network congestion.
If a lot of transactions are in the queue, waiting to be processed, you have to give miners an incentive to give your transaction a higher priority. That is where the higher gas fee comes in. The more you’re willing to pay in gas fees, the quicker your transaction is going to be processed.
So, if you’re not in a rush to get your transaction processed, you can simply try again some other time.
How to reduce the gas fees?
The best option you have to lower the gas fee would be to switch to a different network and see if you’re required to pay a lower gas fee. The BNB or Aptos network is much cheaper to use than the Ethereum network.
But that isn’t really practical as in many cases, the crypto you want to convert might only be present in one network.
So what can you do?
As mentioned before, the easiest thing to do is just try carrying out the transaction some other time.
When is the best time to make the transaction?
The best time to carry out a transaction on the Ethereum network is any time from midnight to 4:00 AM (EST). Try carrying out your transaction on weekdays to ensure that the gas fees you’re paying are the lowest.
Coming to the BNB chain, the trend is somewhat similar but since the gas fee on the network is usually on the lower side, carrying out your transaction at any given time wouldn’t set you back by much. Similarly, a transaction on the Aptos network wouldn’t set you back by much.
So there you have it. Yes, you have to pay gas fees on PancakeSwap. It can be a bit on the higher side sometimes, especially if you are using the Ethereum network.
However, you can always reduce gas fees by timing your transactions right and only carrying out transactions when the traffic and gas fees are low.
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