What Are Gas Fees?
If you’ve ever tried sending crypto or interacting with a blockchain like Ethereum, you’ve probably come across the term gas fees. But what exactly are they, and why do they matter — especially if you’re mining or moving coins like ETH or MATIC in Canada?
In this guide, we’ll explain gas fees in plain English, break down how they work, and show you how to save on them whenever possible.
Gas Fees Are Like a Toll for Using the Blockchain
Think of gas fees like paying a toll to drive on a highway. When you send crypto, mint an NFT, or interact with a smart contract, you’re using computing power on a decentralized network — and someone has to process that request.
That “someone” is a miner or validator, depending on the blockchain. Gas fees are what you pay them for doing the work behind the scenes.
How Gas Fees Work
Gas is measured in small units of the blockchain’s native token. On Ethereum, for example, gas is measured in gwei, which is a tiny fraction of ETH. The total fee is based on two things:
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Gas used – how complex your transaction is
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Gas price – how much demand there is on the network
When the network is busy, gas prices go up. If it’s quiet, you’ll pay less. This is why sometimes a simple transaction can cost a few cents… and other times, it’s over $20.
Why Are Gas Fees So High Sometimes?
Gas fees spike when:
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There’s a hot new NFT drop
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A popular token is trending
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A DeFi protocol goes viral
More people means more congestion, which drives up fees. It’s basic supply and demand.
How Can I Avoid High Gas Fees in Canada?
Here are a few tips for Canadians looking to save:
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Time it right – Use websites like etherscan.io/gastracker to check gas prices. Late nights or weekends are often cheaper.
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Try Layer 2s – Blockchains like Arbitrum, Optimism, and Polygon offer the same functionality as Ethereum but with way lower gas fees.
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Use Canadian-friendly exchanges – Some platforms, like NDAX or Bitbuy, absorb gas fees when transferring between users or during withdrawals.
Why Do Gas Fees Matter for Miners?
If you’re mining Ethereum-compatible coins or working with smart contracts, gas fees affect your bottom line. For example:
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Claiming your mining rewards might cost gas
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Swapping coins or moving funds between wallets incurs fees
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Even minting new coins or interacting with DApps adds up
Understanding gas lets you optimize when and how you move your coins.
Tips for Crypto Miners and Users in Canada
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Always double-check gas fees before confirming a transaction
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Wait for low-traffic times to transfer funds or swap tokens
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Use exchanges with low or no gas fees when possible
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Track fees on blockchain explorers before sending large amounts
Final Thoughts
Gas fees are an unavoidable part of using crypto, but they don’t have to be a mystery. Whether you’re mining tokens at home in Manitoba or trying out DeFi apps on your phone, knowing how gas works will save you money and frustration.
Got questions? Leave a comment or check out my Beginner’s Guide to Crypto to get started.
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