If you’re new to NFTs and the crypto space, purchasing your first NFT, or non-fungible token, can be a daunting (and quite confusing) experience. This is especially true when it comes to paying gas fees. Regardless of the value of NFT itself, transactions can quickly become very expensive thanks to ever-rising gas prices on the Ethereum network, the blockchain used in most NFT markets.
So what are NFT gas fees? Why are they necessary? More importantly, are there ways to buy NFTs without paying gas fees?
We are answering these questions and more! In this guide, we will discuss everything you need to know about NFT gas fees, why they are important, how much gas fees cost, when they are required for transactions, and where you can buy NFTs without paying gas fees.
What are Gas Fees for NFT?
Before we can see if it is possible to buy NFTs without paying gas fees, let’s take a look at what they are. “Gas Fee” is the term used to refer to the costs that users must pay to offset the computational power required to process blockchain transactions. They’re similar to the service fees you pay to swipe your credit card or transfer money to multiple bank accounts.
The denomination used for gas fees, called gwei, are tiny fractions of the native token of the Ethereum network: ether. One unit of gwei is equal to one billionth of an ether (0.000000001 ETH).
Gas fee prices can fluctuate dramatically depending on the complexity of a transaction, the amount of computing power it requires, and the amount of congestion on the Ethereum network. This means that you should expect higher gas rates in peak periods when there is excess traffic on the network.
Why are Gas Fees Important to NFTs?
Gas fees are essentially crypto processing fees. These fees are meant to compensate for the way the Ethereum network and blockchain technology is powered. If you buy and sell NFTs (or tokenize any digital asset on the blockchain), you will need to pay gas to cover the transaction.
Minting an NFT is the process of uploading digital files that are stored on the blockchain as digital assets to create a digital token. To do this, you will be charged gas fees. Gas fees compensate miners for using resource-intensive computers to execute, record, and store your transaction on the blockchain.
In addition to covering the cost of making blockchain transactions, gas fees also help prevent scammers from hacking or spamming networks with fake transactions, since each transaction costs ether (ETH).
Are Gas Fees for NFTs Expensive?
Most NFTs are implemented on the Ethereum blockchain, which currently has some of the highest gas fees. Depending on the type of transaction and the demand on the network at the time, eNFT gas fees can range anywhere from $5 to $500 or more.
How are NFT Gas Fees Determined?
Simply put, NFT gas prices are influenced by supply and demand among miners on the blockchain. The formula for the price of gas on the Ethereum blockchain is gas units (limit) x (base fee + tip). This can also be calculated as 21,000 x (100 + 10) = 2,310,000 gwei or 0.00231 ETH.
If transaction demand is high, more miners and computational power are required to complete the complex algorithms. This increases the cost of NFT gas fees for that transaction.
Another factor to consider is your gas limit. Gas limits refer to the maximum price of gas you are willing to pay for a single transaction. Higher gas limits generally result in your transaction taking precedence over other users who set lower gas limits.
Setting your gas limit ensures that you have more control over transaction fees. The more patience you have with the transaction waiting to be processed at a lower limit, the more likely you will end up paying less in gas fees.
Can NFTs be Purchased Without Paying Gas Fees?
Now that you understand NFT gas prices, how they’re determined, and ways to control how much you’re willing to pay, one last question remains: Is there a way to avoid high gas fees or buy NFT without paying gas fees? absolutely?
Actually, all transactions on the Ethereum network require gas fees. However, if you buy NFTs through unique platforms like UCOLLEX, you may be able to avoid them. This is because UCOLLEX stands out from other NFT marketplaces by allowing you to purchase NFTs with a credit card; no crypto required! This method for an NFT transaction helps you effectively bypass gas fees by not transacting on the Ethereum blockchain.
Almost all major NFT platforms require buyers and sellers to have a crypto wallet (such as a MetaMask wallet) and pay gas for any transaction. UCOLLEX offers a great alternative, making the NFT world more accessible to people on a global scale.
When Do You Pay Gas Fees for NFTs?
If NFT gas fees for NFTs cover computing power on the Ethereum blockchain, when do you pay them? What transactions count?
Buy on An NFT Marketplace
Purchasing NFT artwork or digital collectibles on a marketplace such as OpenSea (currently the largest NFT marketplace and highest generator of gas fees), Rarible, and other platforms require users to pay gas fees. These gas prices are independent of the NFT price, but are directly related to traffic and supply and demand on the Ethereum blockchain.
When you place an NFT order, or even if you cancel the order, you will need to pay the gas fee. When the order is complete and the sale is made, a gas fee is needed to move the cryptocurrency (ether) from your digital wallet to the NFT seller’s wallet.
Gas costs can vary from market to market, so be sure to read the fine print before trading so you are fully aware of the NFT gas fees you will be responsible for.
Transfer of an NFT
There are also gas fees involved in selling your NFTs. Sometimes new sellers are unaware of these fees on your part, which could reduce the profit potential of a sale.
That being said, transferring NFTs to another user’s wallet generally has lower gas fees than minting an NFT. Also, when you resell or trade NFTs, a portion of the funds received is sent to digital artists based on the royalties set in the attached smart contract. Here again, the transfer of crypto to the creator also involves gas fees.
Gasless and UCOLLEX
Whether you’re ready to purchase your first piece of digital art, wanting to take part in the next exciting installment of NFT, or looking to add to your unique NFT collection, UCOLLEX makes it possible for anyone to buy NFT without gas with its unique payment offer. . This can be an important consideration for those looking to dive into the world of NFTs.
As you have learned, each transaction on the blockchain requires the payment of gas fees. While there are exceptions, such as the UCOLLEX platform that allows you to buy NFTs with a credit card, it’s important to be aware of the current factors that affect gas rates when you go shopping. Starting earlier in the day or later in the evening when there may be less traffic is one method to avoid hefty NFT gas fees, but do some digging to see how to pay as little as possible for your transaction.