How a gas fee works
A gas fee is the payment you make to have a transaction processed on a blockchain. Validators or miners prioritise transactions that pay more, so gas is effectively a bid for block space. On Ethereum it is paid in ETH and rises when the network is busy, because demand for limited block space pushes the price up. Gas is the cost of using the chain, separate from whatever you are sending.
Worked example
You swap one token for another on a decentralised exchange during a quiet period and pay a few dollars in gas. The same swap during a busy spell, when many people compete for block space, might cost ten times more. The transaction is identical; only the congestion changed. This is why timing on-chain activity for quiet hours can save real money on Ethereum.
Gas and trading on Volity
Gas fees apply to on-chain activity like moving tokens or using DeFi, not to trading crypto as spot or CFDs on a platform. On Volity, you trade crypto exposure without paying network gas on every action, and deposits in USDC or USDT arrive with no deposit fee. Gas is a cost of self-custody and on-chain use, not of platform trading.
Why it matters
Gas fees can dwarf the value of a small on-chain transaction during congestion, so ignoring them is how people lose money moving tiny amounts. Time on-chain actions for quiet periods, or use lower-fee chains. Related: L1 vs L2 and smart contract.
Learn more in our crypto trading guide.
