Cryptocurrencies are one of the most exciting developments to have come around in recent years. Unlike fiat currencies, cryptos let you transfer and/or receive funds instantaneously. All without having to make use of existing financial infrastructure.
This is because cryptocurrencies like Bitcoin, Ethereum, and Litecoin are all powered by digital ledgers known as the blockchain. The blockchain logs and records all transactions made without having to make use of a centralized database.
To ensure accuracy and maintain the health of the blockchain, miners use specialized computers known as mining rigs to validate transactions. In return, miners receive compensation from the blockchain in the form of gas fees.
Gas Fees: What Is It?
Whenever you transfer tokens from one wallet to another, you are required to pay gas fees. This is the reward that miners receive for processing your transaction.
It is the main reason why some blockchains charge higher gas fees to speed up transactions and also why people are always looking for wallets with the lowest fees: blog.tezro.com/crypto-wallets-with-lowest-fees/
As cryptocurrencies became more popular, their blockchain networks began experiencing heavier traffic. Consequently, this led to a slowdown in transfer times and a hike in gas fees.
In response, developers began introducing improved cryptocurrencies aimed to tackle these problems.
Take Litecoin for example. Like Bitcoin, Litecoins can be mined with ASIC machines but utilizes a modified version of Scrypt. This fundamental difference allows it to process transactions at a much faster rate than Bitcoin with less transaction fees.
Cryptos With Low Gas Fees
So, now that we’ve gotten that out of the way, let’s take a look at cryptos you can use to avoid gas fees.
1. Ripple (XRP)
Ripple or XRP is a payments focused cryptocurrency that was first introduced in 2012. It is specially designed to function as an intermediary currency which facilitates the exchange of currencies.
A notable characteristic of Ripple are its extremely fast transaction speeds and low fees charged. All of which makes the token an ideal currency for anyone looking to transfer large quantities of currencies quickly.
While Ripple Labs; XRP’s parent company is currently embroiled in a legal battle with the SEC, this hasn’t stopped various financial institutions from adopting it. Notable users include Bank of America, Standard Chartered, and the Canadian Imperial Bank of Commerce.
Notable users include Bank of America, Standard Chartered, and the Canadian Imperial Bank of Commerce.
2. Nano (XNO)
Also known as XNO, Nano is a new generation cryptocurrency that stands out because it charges zero transaction fees. That’s right; you can transfer as much money as you like without having to incur any costs.
Besides being free to use, Nano is capable of completing transactions in less than a second. It uses a block-lattice blockchain which assigns users with their own blockchain which they can add to.
Because of this, Nano is technically infinitely scalable which allows it to support a limitless number of users without causing adverse network performance.
3. Cardano (ADA)
Cardano first made waves back in 2021 when the sudden price jumps sent investors scrambling to snap up the new token.
But that’s not all that ADA brings to the table. It’s also known for its lightning-fast processing speeds — 250 transactions a second. Besides that its fees are significantly lower than most coins coming in at about $0.27 per transaction.
4. Litecoin (LTC)
Litecoin was created by ex-Google engineer Charlie Lee as a solution to all of Bitcoin’s faults which included slow transaction times and network congestion. As such, Litecoin has one of the most affordable transaction fees averaging at about $0.03 or $0.04 per transaction. It is also widely accepted around the world which adds to its appeal as a payment-based crypto asset.
Closing Thoughts
Cryptocurrencies are an exciting asset with plenty of uses. However, they are not without their fair share of risks.
As they are unregulated and decentralized, there is plenty of room for abuse. But this doesn’t mean that you should ignore cryptos.
Far from it, actually. The key here is to understand the risks involved and protect yourself accordingly.
