Is Uniswap reaping people off - page 2.

icalical

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

With Centralized Exchange you are not actually interacting with the blockchain network, the fee was defined by the exchange and on CEX you only charged with trading fee there is no blockchain transaction fee. But with decentralized exchange you are actually interacting and using the Ethereum Blockchain so the fee was affected by the network condition. What you could do is checking the average transaction fee on the blockchain before doing any transaction on the DEX.

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

Are DEXs suppose to be more costly normal centralized exchanges?

Yes. DEXs like Uniswap are almost always more expensive to use than centralized exchanges. That's mostly because DEXs work differently behind the scenes. They use an automated market maker (AMM) system to match orders and let users directly trade with each other using smart contracts instead of a company's servers. To make those automatic trades happen, the network needs to use more computational power and that costs more in gas fees. So while DEXs give people more control over their money, that freedom isn't free. You've gotta pay the price with higher fees. Whether it's worth it depends on what you value more - privacy and control or cost.

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

I used it last and the transaction fee was too high so after successfully transferring the coins from there I left the app and refused to use it again. Normally, though for once I have used the Centralized Exchange transaction fees are cheaper than the Decentralized Exchanges. And that is one the factors that I am not using Decentralized Exchange for any transaction for now. And their prices are lower than CEX.

batang_bitcoin

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

You've noticed it late already. I've used uniswap before but stopped because I can't bear the fees for each trade that I make. There is no solution for that or just find some other dex that are in smart contract with other chains that have lesser fees than ethereum (ERC20).
Because I doubt it that it will later on decrease as that has been there for so long, so if you trade small there, you're just letting the network eat your money alive.

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

Simply because that's how Ethereum works. Interacting with a smart contract on Ethereum requires more gas because of more data throughput and more computation needed. That said, DEXes will always be more expensive on Ethereum than a classic centralized exchange, unless you transact with very large amounts. In return, you get decentralization.

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Quote from: YellowSwap on January 07, 2024, 01:37:08 PM

I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

Decentralized exchanges are not made for exchanges of small amounts. The main difference is that with a decentralized exchange, an actual transaction takes place on the blockchain. And this costs (a lot), depending on the chain. The fees are usually even higher because the transaction has to take place within a short period of time. The fees are relatively high for Eth and Bitcoin in particular. However, there have also been phases with ETH where you pay up to $100 for a transaction on Uniswap. With centralized exchanges, there is no actual blockchain transaction during the exchange. Only the amount is deducted from one user in a database and credited to the other. The costs are therefore significantly lower.

Orpichukwu

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On a centralised exchange, what you are conducting is an on-chain transaction where you don't need to pay any fee for such transactions to be completed; only the trading fee is to be charged, which is always not up to 1% of your trading amount.

But on Uniswap, you are interacting with the network. First, you need to approve the token for it to be available for swap on Uniswap. With that approval alone, you will be charged for the gas fee, which is on Eth. And after that, before you can confirm your swap on Uniswap, you also need to pay another fee in order for the transaction to be completed. You pay a two-time fee before you can complete a swap on Uniswap.

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I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?

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