Stop Losing Money on Gas Fees: The 2-Minute Crypto Hack Everyone Ignores

You could be winning every crypto trade but still losing money through gas fees. While gas fees are generally unavoidable, you can stop high gas prices from eating away at your profits. In this post, we will guide you on how to avoid Ethereum gas fees and reduce crypto gas fees generally.

In the world of digital currency, decentralized finance (DeFi), and Web3, “gas fees” are the necessary fuel that keeps blockchain networks running.

They are unavoidable, sometimes unpredictable, computational fees paid to validators on blockchain networks to either confirm transactions or execute smart contract operations.

While absolutely essential for network processing and security, gas fees can quickly erode your profits if not carefully managed.

For instance, gas fees vary widely across blockchain networks and are influenced by transaction congestion and transaction complexity.

On the Bitcoin network, the average gas fee hovers between $1 and $5 per transaction.

On Ethereum L1, being a high-traffic blockchain, gas fees can represent a significant cost.

A simple crypto transfer can cost a few dollars, whereas complex actions like minting an NFT or swapping tokens can often incur gas fees of $20-$50. Occasionally, gas costs can rise to hundreds of dollars during periods of high network traffic.

For active crypto traders or DeFi users, these “seemingly” small fees can accumulate into substantial losses over time.

Let us break it all down in simpler terms with this scenario:

Imagine Jude, an active cryptocurrency trader, who transacts multiple times a week on the Ethereum network without optimizing for gas fees.

In this case, Jude is losing $630 per month in gas fees and a staggering $7,560 per year.

If Jude knew how to save on gas fees by at least 50% through strategic transaction timing or exploring cheaper alternatives, he would have saved $315 per month, or $3,780 per year. Imagine adding this money to his investment portfolio.

The next sections explain the 2-minute strategies Jude and other smart traders can adopt to stop overpaying for gas. First, let us find out why gas exists.

Why Does Gas Exist?

Every operation on the blockchain network comes with a cost, from transferring crypto to using a DApp to minting an NFT. This cost is called a gas fee, and it is not just a fee; it is the network's fuel.

Just as gasoline powers a car, gas fees serve as the essential fuel powering operations on blockchain networks.

Gas exists in the blockchain ecosystem to serve three key functions:

• Compensates or rewards validators (miners) for processing and verifying transactions, and maintaining network security using their computational resources.
• Secures the network against spam attacks by imposing a cost on every network operation. Otherwise, malicious actors would overwhelm the network with unending transactions.
• Creates a mechanism that prioritises transactions during network congestion.

The total gas fee paid on a network operation consists of two components: a base fee and a priority fee.

1. The base fee is the minimum cost per gas unit to include your transaction in a block. The base fee is dependent on transaction congestion and adjusts dynamically to network congestion.

That is, it increases when networks are more congested and decreases when blocks are less congested. Typically, the base fee is burned to help reduce the token supply in circulation.

2. The priority fee acts as a tip to validators to expedite transaction confirmations. It is an additional amount given to incentivize validators to process transactions faster.

During high congestion, setting a higher priority fee increases the likelihood of faster transaction confirmation. Typically, the priority fee depends on users’ urgency and willingness to pay for speed.

The total gas fee (in Gwei) is calculated using this formula:

Total Gas Fee = (Base Fee + Priority Fee) * Gas Unit

Where a gas unit is the actual amount of computational effort needed to process your transaction or execute a smart contract, it varies by complexity, and more complex operations require a higher unit.

Closely related to the gas unit is the gas limit, which is how many gas units you are willing to spend on a network transaction. It is user-defined, and the actual maximum number of gas units you will eventually use for the transaction.

The 2‑Minute Hack: Do These Now To Reduce Gas Fees

While you may not be able to avoid gas fees on major blockchains, you can adopt several practical strategies to circumvent high gas prices. The following hacks will help you effectively avoid overpaying for gas:

Use Layer 2 (L2) Solutions

Using L2 solutions is the most effective practical step to cut your crypto gas costs fast. With L2 solutions, you can expect significant savings from drastically lower gas fees compared to transacting on the Layer 1 (L1) main chain.

L2s prevent expensive transactions by processing them off the L1 mainnet, such as the Ethereum mainnet. L2s bundle multiple transactions into a single low-cost transaction, settling them all at once and reducing the cost per transaction.

Here is ​​how to avoid Ethereum gas fees using L2 solutions:

• Choose an L2 network: choose an L2 scaling solution that supports your desired operation. Popular L2 networks include Polygon, Optimism, and Arbitrum.
• Move your asset to your preferred L2 network: the next step is to move it from the L1 mainnet or a Centralized Exchange (CEx) to your preferred L2 solution.

You can achieve this either by directly withdrawing your funds from the CEx onto the L2 network or by bridging the L1-L2 networks if your funds are already on the L1 mainnet.

Major CExes like Crypto.com and Binance support direct asset withdrawals to L2 networks at much lower fees than to L1 networks. If you are bridging from L1, you can use either a native bridge (Arbitrum Bridge) or a third-party cross-chain bridge protocol, such as Hop Exchange.

Apply settings in your wallet: finally, add the right L2 network to your wallet and apply other necessary settings before transacting.

Most L2 solutions offer guides on connecting your wallet; otherwise, use Chainlist to automatically add the network. Once added, select the network in your wallet to switch from the L1 network to your preferred L2 network.

Gas fees on L2 networks can also fluctuate. Hence, you may need to monitor the gas fee settings in your wallet to avoid overpaying the priority fee. Also, some wallets offer advanced gas fee controls, take advantage of this to further reduce gas fees.

Generally, L2s can reduce gas fees by more than 90% compared to the L1 networks, with simple crypto transfer costing less than a dollar. So, if you have been looking for how to avoid Ethereum gas fees altogether, this is your best option.

Use Timing Cheatsheet

As mentioned earlier, gas fees fluctuate dynamically based on network congestion, dropping when the network is quiet and less congested. Analysis of historical datasets and repeated observations reveals clear patterns in gas fee fluctuations, enabling strategic transaction timing.

Consistently timing your transactions during periods of low congestion can help you avoid costly transactions. Here is a timing cheatsheet to help you save significantly on gas fees:

— Daily/Weekly Gas Fee Patterns: Peak days are Tuesdays through Thursdays, and peak time is roughly 1pm to 6pm UTC (9am to 2pm EST/EDT). These periods consistently offer gas savings of about 25% to 40%.

Off-peak trading periods are weekends, especially Saturday and Sunday mornings, while off-peak time is late night and early morning, roughly 1am to 5am UTC. These periods consistently offer about 25% to 40% gas savings.

— Best Trading Windows: Except for urgent transactions, trade during these historically low-fee trading windows to save 30% to 50% on gas fees:

• Weekends: 1am to 4am UTC on Saturday and Sunday.
• Weekdays: 1am to 5am UTC (when a majority of traders are sleeping and trading activities are minimal).
• Late nights during weekdays: usually after 10pm UTC.
• Weekend early‑morning hours (UTC time) is absolutely the best time for gas savings. Gas fees are the cheapest because most retail traders are inactive, institutional activity is minimal, and global trading desks are closed.

Consider Batching and Simulation

Some platforms let you combine multiple transactions into a single transaction, so you pay just one base fee instead of several. This is called transaction batching and optimization.

Batching multiple transactions or operations into a single transaction is significantly faster and cheaper, reducing per-operation gas costs.

Simulation (or “Dry-Running”), on the other hand, involves testing complex transactions first to avoid failed-tx gas burn. Basically, simulation involves executing complex calls off-chain to determine whether they will succeed or fail before executing them on-chain.

The essence of simulation is to save costs by avoiding failed transactions that still burn gas. DeFi Saver and Tenderly are useful tools for simulating transactions.

Simulation not only tells you whether a transaction will fail or succeed, but it also tells the reason for the failure, and the exact base fee the transaction would use.

Tools That Save You Money

Here are some useful and essential tools that can help you save money by timing transactions and navigating fluctuating gas costs:

Gas Trackers

These are real-time gas monitoring tools, like traders watch market charts, for optimizing gas costs. They display both historical and current gas prices on a blockchain network. Gas trackers guide you on the right time to transact to benefit from low gas fees.

Essential gas trackers include Etherscan Gas Tracker, GasNow, and QuickNode Gas Tracker.

• Etherscan prides itself as the best gas tracker out there, providing in-depth, real-time gas updates and insights into average and peak gas fees. Etherscan also provides heatmaps, intuitive charts, and recommendations.
• Ethereum Gas Tracker is another useful tracker. It monitors and tracks Ethereum and L2 gas prices to reduce transaction fees, save money, and take control of your blockchain experience.
• GasNow is a multi-chain real-time gas fee tracker.

These trackers are often free and web-based. They also display slow, average (standard), and fast fee tiers, giving better timing of non-urgent transactions.

However, they only provide the current market gas rate, not the actual or final rate for a specific transaction. That means, after consulting a gas tracker, you still need to manually adjust fees in your wallet.

Wallets with Estimators

Similar to gas trackers are crypto wallets with estimators. These wallets have a built-in feature that automatically estimates the gas fee for a specific transaction.

Notable examples include MetaMask, Rabby wallet, and Crypto.com Onchain wallet.

• Rabby wallet is available as either a mobile or a browser wallet with built-in gas monitoring tools and user-friendly alerts.. Rabby wallet shows current prices and offers “Gas Top Up” functionality.
• MetaMask shows real-time gas rates directly in its dashboard and interface. It offers options like “Low, Market, or Aggressive” for gas speeds.

Wallets with estimators are convenient tools (integrated estimates), allowing users to manually adjust gas fees to avoid overpaying. However, these estimates can be inaccurate, especially during periods of high network volatility. Also, manually adjusting gas fees too low can lead to failed transactions.

Gas Fee Calculators

These simple web tools do not display live gas prices, but allow you to input the current gas price and the estimated gas units to get an estimated total gas fee. They are useful for budgeting or planning complex transactions.

RareSkills and Cryptoneur are two popular gas fee calculators. They display estimated gas costs in both ETH and fiat, making them easier to understand. Nevertheless, you need to know the current gas price and approximate gas units for your specific transaction.

Simulation Tools

These tools are best used by advanced users for complex transactions. Simulation tools enable users to run complex transactions off-chain in a safe, controlled environment before executing them on-chain.

This process tests the exact outcome, enabling you to know whether a transaction will fail or succeed without paying the gas fee. It also helps you confirm the final gas cost of a transaction. Tenderly and DeFi Saver are two great and useful simulation tools.

While these tools save costs by preventing failed transactions, they are only suitable for complex transactions and advanced users. An average user might have issues using them. Moreover, some features are available only with a paid subscription.

In a nutshell, timing your transactions with a gas tracker is the best and most effective way to save money. After that, you can use a wallet with a gas fee estimator to set an appropriate, non-aggressive gas fee.

If you are running complex transactions, using simulation tools can be the safest option to avoid failed‑tx gas burn.

Before/After Examples

To further explain how effective using L2 solutions can be at cutting your crypto gas costs.

Note: This is estimated costs. Actual gas fees (on either L1 or L2) constantly and dynamically fluctuate based on network congestion, transaction complexity, and the price of Ether at that time.

Notwithstanding, L2s are dramatically cheaper because they compress data and batch operations off the main chain.

Risk Notes

Cutting your crypto gas costs is a good and profitable move, but you must also be aware of the various risks associated with the gas-saving methods. Understanding these risks is crucial for protecting your assets.

Here is an explanation and the potential impact of the applicable risks:

Attack on Bridges

Bridges are protocols that allow the transfer of data, crypto assets, or smart contract calls between two different blockchains. For instance, moving assets from Ethereum’s L1 mainnet to a L2 network like Polygon to take advantage of lower fees.

While using bridges to access cheaper L2 solutions with reduced gas fees is cost-effective, it introduces some risks. Typically, bridges rely mainly on complex smart contracts to lock assets on L1s and mint equivalent wrapped tokens on L2s.

A single bug or flaw in these contracts can be exploited by attackers, as demonstrated by the Poly Network exploits. This makes bridges a major target for large-scale hacks and fund losses due to smart contract bugs, weak verification mechanisms, and compromised validators’ keys.

Before using a bridge, carry out thorough research, exercise caution, and only bridge an amount you can afford to lose.

Fake Tokens

Scammers might send you some unsolicited “fake” tokens, but require a substantial upfront gas fee to process the withdrawal. Once you send the gas fee, the promised tokens never materialize, and your money is gone.

Even if you try to swap or trade these tokens, you will gain nothing because the tokens either have a 100% sell tax or are worthless. Nevertheless, you will still pay the gas fee, effectively losing your money.

Sometimes, fake tokens can give the impression of a pending transaction awaiting approval. Even if you attempt to cancel the approval, you inadvertently trigger a malicious code that drains your wallet of its assets to cover the “gas fees” of the scammer's transaction.

To stay safe, avoid paying upfront fees to claim tokens, and do not revoke or cancel any unknown approvals. Only interact with reputable and verified platforms, and verify all transaction details carefully.

Phishing

Scammers often offer gas-saving features, such as gasless signatures, to unsuspecting traders. Scammers can leverage these features to trick users into signing malicious codes that grant them access to their assets.

Approval Hygiene

Approval hygiene is a good crypto safety practice. It involves granting smart contracts permission to access and spend a specified amount of your tokens on your behalf.

Poor or ignored approval hygiene enables hackers to drain your wallets by exploiting malicious or excessive token approvals. To prevent this, you must always review and revoke unnecessary or outdated approvals.

However, practicing good approval hygiene often leads to higher gas fees over time because you need to pay them each time you revoke existing approvals or increase a limited allowance.

Quick Start Plan

To quickly and significantly cut your gas costs, focus on these top five strategies:

• Always check the gas price before transacting: Gas fees fluctuate dynamically for several reasons. So, it's always a good practice to check the current gas price (in Gwei) on gas trackers before executing transactions.

A lower gas price means a cheaper transaction, and vice versa. Also, use a gas calculator to know the actual gas fee you would pay for a specific transaction.

• Leverage Layer 2 solutions: L2 solutions bundle multiple transactions into a single low-cost transaction, settling them off the L1 mainnet. This strategy reduces gas fees by about 90% and increases transaction speed.

Move your tokens from the mainnet to an L2 network like Arbitrum using a reputable bridge. The initial bridging transaction may be expensive because it's executed on the L1 network, but the subsequent transactions will be cheap.

• Time transactions: Gas fees constantly and dynamically fluctuate based on network congestion. Targeting off-peak hours can lower gas fees and help you save more, with no technical changes required.

Leverage gas trackers to know the right time to transact to benefit from low gas fees. Avoid transacting during high-demand events like NFT mints or major token launches (TGEs).

• Batch operations: Instead of running multiple transactions or operations separately, consolidate them into a single operation. Leveraging tools that support batching will help reduce the total gas used.
• Simulate transactions: If you are running complex transactions, using simulation tools can be the safest option to avoid failed‑tx gas burn. Simulation tools enable users to run complex transactions off-chain in a safe, controlled environment before executing them on-chain.

Conclusion

High gas fees shouldn't eat away at your profits. Understanding how to reduce crypto gas fees enables you to save more money and use the network more efficiently.

While gas fees can fluctuate for several reasons, leveraging L2s, timing transactions for off-peak hours, and batching/simulating operations can help achieve cheaper, faster transactions.

By adopting these practices, you can dramatically reduce your gas expenses in 2025.