Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Greg123 on October 07, 2023, 09:05:23 PM
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Hello, I'm new to crypto, and to USDT in particular. Here’s a short description of a problem I encountered trying to get some expierience with this coin.
I had some BCH (Bitcoin Cash) stored in my Edge wallet app. I exchanged (swapped) 11$ worth of it into USDT (Avalanche) and received 11 USDT. So far so good. Then, I wanted to change my USDTs back into BCHs. I got a message “not enough AVAX” to complete
the exchange.
So I tried to send my USDTs to 2 other wallets (one of them Binance), hoping I could change it there. However, both transactions were rejected for the same reason - “not enough AVAX” and “insufficient funds”. After a bit of research on what AVAX is, I found it was another crypto, used to pay transfer fees over the crypto network.
I then tried to exchange or send smaller amounts of USDTs, but I kept receiving messages of insufficient funds even for 1 USDT.
Is it possible that even the smallest operation with USDT involving some network traffic consumes more than 11$ in fees? Or maybe I’m doing something wrong? How can I recover the money stuck in the wallet?
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USDT is not a coin; it’s a token that requires smart contract execution for transfers. And smart contract execution requires the spending of some native coins of the blockchain on which it operates. Therefore, sending USDT on Avalanche requires spending some AVAX. In other words, you need to have enough AVAX in your wallet to cover the corresponding fees to initiate the transaction.
Transaction fees vary across different blockchains and typically do not depend on the amount of USDT being sent. But they are influenced by various factors, mostly determined by network rules. Sometimes network congestion affects them heavily and fees can become remarkably high. For instance, approximately a year ago, the transaction fee for USDT on Ethereum blockchain was about $15.
Although I am not well-versed in Avalanche's fee structure, based on current observations in their blockchain, the average fee is around 0.0017 AVAX per USDT transaction, which amounts to only about $0.06 USD (6 cents). You still need to have them. I am more familiar with the Tron network, as our project is built on it. The transaction fee for Tron USDT is essentially fixed, varying only based on whether the target address already holds USDT or not.
In any case, it's important to remember that regardless of the blockchain used for USDT, you will always need to possess (and spend) some native coins of that blockchain to send USDT to other addresses.
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Transaction fees vary across different blockchains and typically do not depend on the amount of USDT being sent.
Regarding USDT fees in general, I created a separate topic to compare USDT transfer fees on different blockchains:
https://www.altcoinstalks.com/index.php?topic=321170