Gas fees are payments that users have to make to compensate for the computation energy required to process transactions on its respective blockchain network.
This is very much like the processing fees credit cards may charge for transferring money to various accounts or for paying bills. Due to congestion on the network, gas fees can vary from time to time. With more transactions being processed on the blockchain network at a particular time, the gas fees increases.
So, if you want to buy an NFT which costs 0.1 ETH, the entire transaction will cost you at least 0.11 ETH with gas fees included.
What are Gas Wars?
As explained earlier, gas fees can increase when there is more activity on the respective network. If many people are minting NFTs during an NFT Collection drop, the gas fees is high for all users on the network. The downside to this is that you may have to pay much more money to acquire other NFTs. If you don't want to pay the high gas fees you would have to wait for the activity to reduce so that the gas fee is low.
Whenever you want a transaction to go through, there is a recommended gas price. You can increase the gas fee prices you want to pay so that the network providers help your transaction go through faster. This can increase your chances of acquiring the NFT before others which is useful when a project sells out quickly.
We do not recommend reducing the gas fee price because there is a chance your transaction will fail and you will lose the gas fees you paid.
Stay tuned for our next blog post.