Search…
⌃K
Links

Why do I need a native coin to trade a token, and what are gas fees?

Now that we’ve learned all about crypto and the blockchain, and you have your wallet set up, you’re probably wondering if there’s anything else you need in order to get your first tokens.
You could stick to buying coins on a centralized crypto exchange and use a custodial wallet, but that’s probably not why you’re here. If you want to gain access to all of the coins and tokens that are out there, you’ll first need to get a native coin.
There are a few reasons for this, but let’s start with gas fees. Gas fees are the cost of doing anything on the blockchain, and this is paid in the native coin of the blockchain you’re using. On BNB Chain, you need Binance Coin (BNB) to cover your gas fees. On the Ethereum blockchain, you need ETH.
Remember those validators that we discussed previously who verify all of the transactions on the blockchain? They’re not just doing it out of the goodness of their own hearts; they’re doing it to make money. The gas fees cover the cost of having your transactions validated. And no, there isn’t a way to avoid them. Be aware that the fiat value of gas fees on some blockchains costs more than others. It’s not unheard of to pay a few hundred dollars worth of gas fees on Ethereum for some transactions, but luckily there are other chains that have much lower fees—like BNB Chain.
The second reason to have a native coin is that most tokens’ liquidity pools include the native coin in their liquidity pair. Read on to the next section to find out about liquidity pairs.