I'm pretty new to the crypto scene. I tried to use Uniswap together with my CoinBase Wallet to trade some FET to TKING. Just before the transaction went through I was informed that there would be a network fee (I think this is referred to as a "gas price") of $150 to $200 USD (in Ethereum). Since my trades are usually around $1000, this is enormous! Am I doing something wrong? Is this really how much it costs or am I just missing something because I'm a noob?
Yes, the average gas fees for Uniswap trades are around $100 and can go as high as $300-400 based on the network gas fees. If you're one who trades for less volume, you should try using centralized exchanges.
1Instead of centralised exchanges I suggest you do your trades on these Ethereum compatible blockchains: Polygon, Avalanche, Harmony, Aurora, Binance Smart Chain, Celo Nov 4, 2021 at 2:14
I use a centralized exchange for some trades, but they often don't support tokens like Tiger King.– benbaldNov 4, 2021 at 2:26
@MikkoOhtamaa Do these suggested blockchains have lower gas fees than Uniswap?– benbaldNov 4, 2021 at 2:27
The gas fee is not a property of a Uniswap, but Ethereum mainnet. Nov 4, 2021 at 3:05
Yes, if you are trying to do a swap, it will vary based on the complexity of the two tokens that you are trying to swap, but as harsh as it sounds, $150 is a steal as of late.
Hopefully Ethereum 2.0 will make trading affordable again for the common people. But there are many layer two solutions trying to solve this transaction fee issue like Polygon/Matic, Binance Smart Chain and Arbitrum which also have decentralized exchanges like Uniswap. They are neat solutions but you still have to move them from the Eth network which if you are lucky will only be $40-60 per ERC20 contract but again depends on the complexity of the tokens.