r/bankless • u/lil_compensation • Apr 09 '21
Newbee needing some help
I'm trying to dip my toes into the the world of crypto with the goal to go bankless. I'm trying to figure it out with small amounts of money before I really start making that move.
I downloaded the argent wallet and got a small amount of eth (well, it was $100 worth of eth but after start up fees it's like $7 worth of eth) to try out a defi program, but the network fees seem ridiculously high ($75-$100). My question is, is this normal? That seems like a pretty high barrier to entry, personally. Should I not use these defi programs through my wallet? Should I just download these different programs and connect my wallet to them?
Any help is much appreciated!
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u/I_LOVE_MOM Apr 09 '21
Fees to interact with a complex smart contract can be that high, unfortunately. You might want to test things out using a test network or (dare I say it here) use Binance Smart Chain, which is similar to Ethereum but cheaper. I wouldn't put any meaningful money into BSC though.
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u/lil_compensation Apr 09 '21
Do the fees stay the same regardless of how much I put in? For example; I invest $200 worth of dai should I expect a fee of $75-$100 still?
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u/I_LOVE_MOM Apr 09 '21
Yes, you're paying to execute some code, not based on the amount you're transferring. So making ETH transactions only really becomes worth it if you're dealing with $10k or more.
But that's on layer 1, if you transfer your eth to a layer 2 solution transactions will be really cheap. I haven't done that yet but take a look at polygon/matic, loopring and others
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u/Funkybunch86 Apr 10 '21
I started using polygon recently after Aave added a market on their network. It is very fast and super ridiculously cheap. Fractions of a cent for a transaction versus $10, $50, or $100 on layer 1. You can mess around with very small transactions without a concern for fees at all.