Do you have GAS??? — updated…

Do you have gas?

(No not that kind of gas…although it’s good to get rid of it from time to time…anyways, I digress. Back to the topic at hand…)

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We are talking about gas fees again & a revelation that I had today concerning them.

(I hope you like crypto math…)

(NONE OF WHAT I WRITE IN MY ARTICLES IS TO BE TAKEN AS INVESTMENT ADVICE. I am not an advisor for this nor am I suggesting any financial action on your part. DYOR)

What are gas fees?

As you may know, in the real world it costs money to move money around.

Think about transferring money via certified check/ money order. Or possibly moving money from a retirement account into your bank account. Maybe even paying your bills online, depending on the bill.

Some companies charge a transaction fee to move the money.

It is very similar to this when dealing with crypto. These transaction fees are sometimes referred to as gas fees. It is the fee charged to get your crypto from point A to point B.

Think about it as if you picked up the tokens, put them in your car, & drive them to their new destination. You would burn gas/ volts (for the EV drivers out there) to get from the first destination to the second destination. Now if you have to carry them for a longer period of time or maybe you have to go through several cities to get those tokens to their destination then it would use up more gas.

(check out this cool website about current gas prices in the USA)

This is somewhat how it works with crypto. Each transaction costs you a gas fee. This covers the cost of your tokens going from point A to point B. This gas fee can vary widely, depending on the type of transaction, number of transactions that need to happen for THIS transaction to be completed, blockchain network(s), etc.

What does that have to do with anything?

You must consider the cost, & impact, of gas fees before performing any crypto transaction.

For example, on the BSC network you don’t want to use up all the BNB in your wallet or you can’t do anything else, because it will require BNB as the gas fee.

You must keep tracking of how much crypto you still have in your wallet & plan on how long it will last. You must also have a plan in place to make more of that particular crypto to cover gas fees in the future. Fortunately, this is fairly easy to do.

Also, fortunately, a lot of crypto wallets will let you know how much the gas fees are for each transaction, as seen below.

How can I use this information?

The picture above is how much BNB was needed to compound my earnings in BNB Miner.

I have found that it is a good thing to start tracking my gas fees for my projects. Gas fees effect profit & are a necessary cost of doing business. So they need to be tracked.

How does it effect profit???

I am invested into several different types of crypto investments. Below is a small list of how much the estimated gas fees (in BNB & USD) are for 3 of my current investments.

1. BNB Miner cost to compound: 0.000441 BNB ($0.12)
2. DRIP Network cost to compound: 0.002946 BNB ($0.81)
3. Pig Pen (Animal Garden) cost to compound: 0.0125 BNB ($3.38)

As you can see above the gas fees vary greatly from project to project.

Now, let’s see how much gas fees really cost for each of these projects in 1 week, if we compounded their earnings once per day for 7 days.

1. BNB Miner = $0.12 times 7 days = $0.84 weekly
2. DRIP Network = $0.81 times 7 days = $5.67 weekly
3. Pig Pen = $3.38 times 7 days = $23.66 weekly

Therefore, in order to be profitable in these three project I will need to withdraw more than it cost in gas fees every week. Otherwise the gas fees alone will cause my investment to go into the red. (I would have been better off not investing in said project if that happens.)

1. BNB miner profit requirements = > $0.84 weekly
2. DRIP Network profit requirements = > $5.67 weekly
3. Pig Pen profit requirements = > $23.66 weekly

Crypto Math…now down to the nitty gritty…

You can play around with those numbers a bit to make it more affordable to invest into these projects. For example, you can only compound only a few times per week to greatly reduce gas fees, increasing your profit margin.

BNB Miner has very low gas fees, which means that I can compound more often with this project.

DRIP has higher gas fees, which means that I can compound less often with this project.

Pig Pen has very high gas fees, which means that I may only want to compound once per week with this project.

Gas fees per project, per week, with the above strategy:

1. BNB Miner (compound 2x daily, for 4 days) = $0.96 weekly
2. DRIP Network (compound 1x daily, for 4 days) = $3.24 weekly
3. Pig Pen (compound/withdraw once per week) = $3.38 weekly

This also means that I need to withdraw the minimums below for each of these projects, to be profitable:

1. BNB Miner = at least $1.08 ($0.96 weekly compound gas fee + $0.12 withdraw gas fee)
2. DRIP Network = at least $4.05 ($3.24 weekly compound fee + $0.81 withdraw gas fee)
3. Pig Pen = at least $3.38 (weekly gas fee)

What does all this mean????

Let’s put this in perspective. Look at my withdraws from these project last week, 10/22/22:

1. BNB Miner = $10.46
2. DRIP Network = $2.06
3. Pig Pen = $0.009

I was only profitable in BNB Miner & not the other 2 projects, after considering gas fees.

This must change or I lose money…

So now I have some serious thinking to do on how to become profitable in these projects…aren’t you jealous? (You may have some serious thinking to do as well.)

Stay tuned to my next article, so I can tell you what I figured out & how my investment strategies may be changing…

Here are links to the projects discussed in this article:

BNB Miner referral link

DRIP Network referral link

drip.community/faucet?buddy=0xdD06977A89C828BEAAA5A4ed439dBbC69210AcF5

Animal Farm referral link

Thank you again for reading this far. It really helps me out!

Let me know what you think about my revelation.

Now following anybody that interacts with my articles… God Speed!

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Update:

Here is a link to the next article, where I discuss my new strategies with these projects.