Why Has The Gas Fee Fluctuated So Much?
Non-fungible tokens (NFTs) have opened up a world of possibilities for artists and digital asset creators. With NFTs, they can earn more money than they earn selling their art in non-token forms like art prints. The caveat to this is they need to spend money before they can have the chance to make money through their art.
One thing anyone interested in minting a token, selling it, or buying it should know is that there are fees needed to be paid besides the cost of the minting process itself. The most important is gas fees. Here’s what you need to know.
What are Gas Fees?
In the NFT scene, gas fees come as a sort of hidden fees that the blockchain network charges for the minting process. Here, gas refers to the resources used by miners to process transactions. You see, minting a token requires computing power which is needed to verify and record the transaction on the blockchain.
The network can process millions of transactions across the globe with the help of miners. The thing is, miners do not do this for free. The network needs to pay these individuals and this comes in the form of gas fees, which are directly given to miners.
Why are Gas Fees So Volatile?
Gas fees are volatile because the cost of gas varies based on the number of transactions to be processed, the time it takes to process a particular transaction, and the number of miners providing their computing power.
Keep in mind that the amount of gas needed to complete a transaction is always the same, but only the cost of gas varies. If you are trying to mint at peak hours, chances are the network will be congested and you will have to pay more on gas fees. If you wait until slow hours, then you can get a more affordable bill on gas.
The catch is you will never know how much you need to pay for gas until you receive the bill. This is why it is important to always have funds in your wallet to pay for gas, or else, the system will not be able to push through with the transaction and you might lose money on gas fees for a transaction that failed.
The True Cost of Minting an NFT
So, how much does minting a token cost? The answer may vary depending on the platform. Some marketplaces do not charge a minting fee but charge a percentage every time you sell a token. Some only charge fees if you decide to put the NFT up for sale. Others charge a fixed fee for a certain number of mints. On top of this, you need to prepare for gas fees.
In addition, you are running a risk of other people stealing your work as you are putting it out there for the world to see and access. If you are looking for a way to mint your work into tokens and take full charge of your intellectual property whether in the virtual or real worlds, then you should check out ArtizYou and its NFCs.