Mining Fee questions (very basic)

#1

So like many people I did the coinbase earn deal. Worked great for everything, ya know i just converted it all to BTC, sent to my cash app and withdrew USD, sweet right. Except the USD compound one.

Ive been playing with crypto more and more lately. Decided to explored the cUSDC some more.

So why is it rhat it costs me 5.82 usd worth of ETH in order to withdraw 3.01$ worth of the cUSDC.

Just curious. I dont know what to do with it. Thought about just adding more money and maybe it would be worth it one day. But as of now irs just 3 imaginary dollars floating around somewhere.

Im very new to this dapp stuff also so any tips or suggestions on how to learn more would be appreciated.

#2

It’s due to the required gas fees on the Ethereum network. Checkout this article for more info.

#3

Well, not tryinf to be rude or anything, but isnt all this imaginary? Like maybe the gas fees are slang for electricity or something, but all this is only given substances and value is the collective groups belief in it all? Or am i entirely misunderstanding this crypto currency stuff.

#4

Hey Sam,

I was in the same situation a couple of months ago during the defi craze.

What really happens is a constant problem with the ethereum network. When the network is heavy loaded with many transactions, the miners increase the amount of gwei (a small denomination of ETH) in order to give priority to important transactions.

What I suggest is connecting to compound with MetaMask or any non-custodian wallet that allows you to set the amount of gwei you’re willing to pay.

Another thing that you can do is to withdraw your funds when transactions fees are low, you can use this website to check the current prices:

The current 15 gwei is around 22 cents per transaction (~21K gas) just remember that compound requires a few amount of transactions (gas) to interact with the smart contract and your wallet.

Another cheaper option if you’re a bit tech savvy is interact directly with the contract in etherscan and withdraw the funds from there.

PS: Hopefully when ETH2 is released, your grandkids will ask you about the time you spent six dollars to withdraw three dollars from compound.

Also beware of scams in google, don’t click in ads and always check the authenticity of the websites you’re visiting.

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#5

Aweozm. Lots of information to digest there lol, thanks, ive been stumbling around these dapps trying to figure out if any of this is real or not. Glad to hear it is based in reality. Well you gave me a lot to look into tonight. Thanks again i appreciate it.

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