Gas fees are what you pay the Ethereum network to process a transaction: the gas units it uses multiplied by a per-unit price in gwei, paid in ETH. The price has two parts, a base fee the protocol sets and burns, and a priority fee, a tip to the validator. You pay it whether the transaction succeeds or fails.
This is an evergreen explainer, not news. This desk read ethereum.org’s gas documentation and Gemini’s two fee schedules on 17 October 2026. The gwei figures below are ethereum.org’s illustration, not a current price.
What are gas fees, worked in numbers?
The formula is gas used x (base fee + priority fee). One gwei is 0.000000001 ETH. ethereum.org’s own example, followed through:
| Step | Figure |
|---|---|
| Gas for a plain ETH transfer | 21,000 units |
| Base fee + tip | 10 gwei + 2 gwei |
| Total | 252,000 gwei = 0.000252 ETH |
| Burned (base fee) | 0.00021 ETH |
| Kept by the validator (tip) | 0.000042 ETH |
| Sender debited to move 1 ETH | 1.000252 ETH |
The base fee comes from previous blocks against a target of half the gas limit, and moves at most 12.5% per block.
Is an exchange withdrawal fee the same as gas?
Close, but it is the exchange’s line. Gemini’s Transfer Fee Schedule, dated January 20, 2026, charges a “dynamic withdrawal fee” when crypto leaves for an external wallet. The schedule says the fee is structured to correspond with current network fees, is shown before you initiate the withdrawal, and that Gemini does not pocket it; that is the company’s statement, not something this desk can audit. Changes to it take effect immediately, without the three-day notice that applies to fiat fees.
One wording gap: the schedule says the fee covers network fees “paid to blockchain miners”. On Ethereum, per ethereum.org, the tip goes to a validator and the base fee is burned. Two documents, two vocabularies. Our Gemini withdrawal fees post reads the rest of that schedule line by line.
Three costs people call gas
- On-chain gas: set by the network, paid in ETH, as worked above.
- Withdrawal network fee: set by the exchange to track gas. On Gemini, ERC-20 withdrawals pay it in the token withdrawn, and Gemini covers the conversion to ETH.
- Trading fee: not gas at all. Gemini’s ActiveTrader schedule, dated September 1, 2026, prices it as maker/taker percentages charged in the quote currency, 0.600% maker and 1.200% taker on the base tier. Our ActiveTrader review goes through the ladder; Gemini deposit fees covers the inbound side.
What are gas fees asked most often
How are gas fees calculated?
Multiply the gas units the transaction uses by the base fee plus the priority fee, both in gwei. ethereum.org’s example: 21,000 x (10 + 2) = 252,000 gwei, or 0.000252 ETH. The base fee is set by the protocol from earlier blocks and can move at most 12.5% per block. The tip is what you choose to offer.
Why are gas fees so high?
Because block space is auctioned. When blocks run above their target size, half the gas limit, the base fee rises by up to 12.5% per block, and senders raise their tips to get included sooner. When demand falls, the base fee falls by the same mechanism. Busy periods cost more; the per-unit price floats.
Do you pay gas fees when you withdraw from an exchange?
On Gemini, yes, indirectly. Its transfer schedule charges a dynamic withdrawal fee to cover network fees, shown before you confirm, and says Gemini does not pocket it. ERC-20 withdrawals pay that gas in the token withdrawn. Gemini’s schedule lists no fee to deposit crypto; by ethereum.org’s sender-pays example, the sender covers the gas on their side.
Read the fee on the confirmation screen, not the one in a blog post, this one included. Nothing here is financial advice; crypto assets are high risk, and the homework is yours.