Stablecoin transaction fees
If you’re new to stablecoins, you may not know that you need to pay for transaction fees separately. Many new users get stuck at this point but it’s actually quite simple to navigate once you know how.
Different stablecoins run on various blockchains, and each blockchain has its own native currency used to process and validate transactions. Below, we'll explore some specifics that every stablecoin user should know.
- USDC on Ethereum: If you're purchasing USDC, which primarily operates on the Ethereum blockchain, you'll need Ether (ETH) to cover transaction fees. This is because Ethereum's native cryptocurrency, ETH, is used to fuel operations on its network.
- USDT TRC20 on TRON: The TRC20 version of USDT operates on the TRON blockchain. Consequently, if you're sending or transacting with this variant of USDT, you'll need TRON's native currency, TRX, to cover associated fees.
- USDT ERC20 on Ethereum: While USDT is available in multiple versions, its ERC20 variant also runs on Ethereum. Thus, just like with USDC, you'd need ETH to handle transaction fees for USDT ERC20.
- USDT BEP20 on Binance Smart Chain (BSC): The BEP20 is a token standard on the Binance Smart Chain. If you're transacting with USDT BEP20, you'll need BNB, Binance's native currency, to cover fees.
- Stablecoins on Solana: If you're dealing with stablecoins like USDC or USDT on the Solana blockchain (SPL tokens), you'd need Solana's native currency, SOL, to pay for transaction fees.
Understanding these nuances is pivotal for anyone diving into the world of stablecoins. It's not just about holding the stablecoin itself but ensuring you have the appropriate accompanying currency for a seamless transaction.
In essence, before purchasing or transacting with a specific stablecoin, always consider the blockchain it operates on and keep some of its native cryptocurrency on hand. This way, you're always prepared for any transactional needs and can avoid unexpected hurdles.