I’ve gotten this question enough times, so I’ll just make a quick blog post about it.
I get asked a lot which blockchain most of my tokens are on.
This question comes a lot more often when the market is moving a lot, and gas fees on Ethereum are high.
The answer is still Ethereum however. And I will list my reason’s why.
First off, my invested tokens/coins which are not sitting on the Ethereum blockchain for obvious reasons:
BTC
LTC
AVAX
ADA
CAKE
I think that’s it.
The rest are on Ethereum, and this is why:
1 – I don’t trade crypto
I’m working on crypto algos in the background, but I haven’t been able to dedicate as much time to it as I would like for now. Either way, I’m only an investor at this point and….
2 – I don’t make a lot of transactions
When I make a move, you pretty much know about it via Twitter or the podcast. It’s not frequent, so I’m not losing a ton of money transacting on Ethereum compared to other chains all told.
I do make moves weekly on Cardano because of the games I play there, and staking and such, but that’s different. Those involve NFTs mainly, and I’m paying a wee dime or less in USD for every transaction.
3 – I already get paid on the Ethereum blockchain
ByBit pays me in USDT on Ethereum, so if I really had to make any moves, there’s money sitting already right there which makes things a lot easier. Between that and using my take-profits to buy more crypto, I haven’t used Coinbase in some time.
4 – Safety
The Ethereum blockchain itself has never been hacked.
There was a smart contract hack back in 2016. Side chains have been hacked. Exchanges too. But no successful hacks on Ethereum, and say what you want about the tech, that’s a ringing endorsement.
5 – Liquidity
I still remember USDC on the Binance Smart Chain dropping to $.87 because there just wasn’t a lot of it there at the time. There’s safety in liquidity, and for the foreseeable future, Ethereum is going to be the winner here.
6 – Fees usually aren’t THAT much
I make my transactions when gwei is low, usually at sub-10 gwei.
I’m normally awake at midnight in the Western Hemisphere too, which helps.
This means I rarely pay more than $7 or so to transact once you add in wallet fees and such. A bank wire is $25-40 comparatively. Coinbase would charge close to that for some purchases.
So yeah, I’m not “getting away with murder” from a fees perspective, but….
Conclusion
No need to be a piker and demand only pennies for my transactions when I don’t make many in the first place, and what I’m essentially “paying for” is the safety and liquidity of the chain itself.
Sometimes, as a grown-up you need to make these trade-offs.
This is your money we’re talking about here, after all.
Once Ethereum finally gets these fees figured out, this will hopefully not be an issue. But this could be awhile.
In the meantime, I’m very satisfied with my choice.
It’s okay to pay more sometimes.
— VP