HOW TO CUT DOWN TRANSACTION FEES

ON THE ETHEREUM NETWORK

By Greg Wilson
 HOW TO CUT DOWN TRANSACTION FEES
ON THE ETHEREUM NETWORK
By Greg Wilson

If you’re a regular crypto user, you’ve likely made a transaction on the Ethereum network –
and run into high fees as a result.

While Ethereum has seen rapid adoption since it launched in 2014, its success has led to
some growing pains.

Ethereum hosts over 2,500 applications – the most of any blockchain. And roughly 2,300
active developers are currently working on the Ethereum network.

As a result, the number of transactions is skyrocketing. And that means networks are
starting to get congested, slowing down transaction times and increasing fees.

A single transaction fee on Ethereum can run as high as $100 during peak times –
regardless of the size of the transaction.

That can be particularly brutal for everyday investors.

Longtime readers know we recommend smaller investors put no more than $200–400
into any position… and for bigger investors, no more than $500–1,000. So a $100
transaction fee can gobble up between 10% and 50% of your position.

It’s one of the biggest concerns we hear from readers. But luckily, there’s a solution we can
use. And it’s already part of our Palm Beach Crypto Income portfolio.

As you may know, we recommended Polygon (MATIC) in August 2021. You can read our
full writeup on it here.

But what’s important to know is that Polygon has developed a second-layer solution that
runs a sidechain parallel to the main Ethereum blockchain. So it allows transactions to take
place on the sidechain then routes them back to Ethereum for settlement.

That makes it the perfect tool for reducing your transaction fees on Ethereum.

Today, it costs less than a penny for a transaction on Polygon.

That’s significantly cheaper than Ethereum. And also a discount compared to the $1.40
cost for a basic transaction on Optimism and $2.65 on Arbitrum – two of the most
promising Ethereum scaling solutions currently available.

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 So if you find yourself constantly dealing with high transaction fees on the Ethereum
network, we urge you to read this guide and consider using Polygon to help you save
money on your crypto trades.

Below, Palm Beach Confidential crypto analyst Houston Molnar will walk you through
step-by-step instructions for using Polygon.

Please note: Not all the tokens we recommend in our Palm Beach Crypto Income
portfolio are available on the Polygon Network. But it’s consistently adding more. So be
sure to confirm the availability of the token you’re looking to trade beforehand. And check
back for updates often.

Regards,

Greg Wilson
Chief Analyst, Palm Beach Crypto Income

How to Use Polygon

By Houston Molnar

Part 1: Creating a Polygon Wallet

First, you’ll need to create a Polygon wallet if you haven’t already. In this set of
instructions, we’ll be using the MetaMask wallet to create our Polygon Wallet.

You can download the MetaMask wallet here.

Note on MetaMask: Some users are currently experiencing issues with the Google
Chrome browser when using a Ledger device with MetaMask.

While you don’t need to use a Ledger hardware wallet to perform the transactions
below, we highly recommend using a hardware wallet since it greatly increases your
security.

If you’re experiencing issues with the Google Chrome browser, try using the Firefox
Browser which you can download here.

After downloading MetaMask, follow the prompts to either create an account or connect
an existing wallet.

Then follow the steps below…

Step 1:

• Head over to Polygon’s web page at polygon.technology.

• At the top of this page, click “Polygon Wallet” under the “Use Polygon” tab.

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 • See the picture below.

Step 2:

• On the next page, click “Connect Wallet” in the top right-hand corner of the page.

• Next, select “MetaMask.” This will open your MetaMask extension and prompt you
to sign in.

• Log in to MetaMask and connect your wallet to the site.

Step 3:

• Next, you’ll attach the Polygon network to the wallet. To do this, go back to the
Polygon Wallet page shown below.

• From here, you’ll see your MetaMask wallet is connected in the top right-hand
corner.

• Click “Polygon Wallet.”

• On the next page, click “Switch to Polygon” in the upper right-hand corner.

• See the picture on the following page.

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 Step 4:

• Click “Approve” and “Switch Networks.”

• See the picture below.

Congratulations. You’ve set up your MetaMask wallet and plugged into the Polygon
Network.

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 Pro Tip: You’ll notice your Ethereum address is the same as your Polygon address.

It’s important to remember to switch the network you set your MetaMask to when using
Ethereum applications or Polygon applications now that you’ve added another network.

You can do this by clicking on the MetaMask extension icon at the top right of your
web browser.

And from the dropdown menu shown below, you can switch between Ethereum and
Polygon.

Now that you’ve set up and plugged your wallet into the Polygon Network, the next step
is depositing assets onto Polygon. There are a few options to consider depending on what
assets you’re using.

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 First, you can withdraw tokens from an exchange directly onto the Polygon Network. We
recommend only doing this with MATIC tokens.

Second, you can bridge assets from the Ethereum network over to the Polygon Network
(we’ll go over this second option in detail in the section below).

Now, for the first option, it’s important to note that withdrawing MATIC directly from an
exchange to the Polygon Network can save you up to $100 on Ethereum transaction fees.

U.S. users can withdraw MATIC directly to the Polygon Network through KuCoin.

And international users can withdraw MATIC tokens to the Polygon Network through
Binance, KuCoin, or OKEx.

Coinbase recently announced future plans to support direct withdrawals to the Polygon
Network. We’ll update you when this is put in place.

If you intend to withdraw MATIC to the Polygon Network, double-check the network you’ve
selected on the exchange’s withdrawal page to ensure you’ve selected Polygon Network.

You’ll often see multiple networks as options. So make sure you’re sending your assets to
the intended network to avoid paying unnecessary transaction fees.

When withdrawing assets to a new wallet, consider withdrawing a small amount before
sending a larger sum to ensure everything works as it should.

Another thing to note: It’s not uncommon for exchanges to suspend withdrawals if
their wallet is under maintenance. If this is the case with an exchange you’re using, you’ll
need to wait or use the Ethereum bridge, as explained below.

Part 2: Bridging Assets From Ethereum to Polygon

The second option for sending assets from Ethereum to Polygon after you’ve set up and
linked your wallet is to bridge them.

A bridge connects two networks, enabling them to communicate in a trustless way through
smart contracts.

With the Polygon bridge, assets are sent to a smart contract on Ethereum, which then
signals a smart contract on Polygon to mint the equivalent of assets. And when assets are
sent back, the asset is burned on Polygon and released on Ethereum.

We only recommend sending the major stablecoins (DAI, USDC, or USDT), ETH, or
MATIC between networks since not every token on Ethereum exists on Polygon.

If you’re an advanced user and want to transfer other tokens between the two networks,
make sure you check mapper.matic.today to ensure the token can be easily transferred.

Once you’re on the Polygon Network, it’s important to remember you must pay transaction
fees in the MATIC token. Just as you’d pay transaction fees on Ethereum in ETH.

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 And if you’re bridging ETH or another ERC-20 (Ethereum-compatible) token aside from
MATIC, don’t worry. There’s a feature you can use to swap a small amount of your assets
into MATIC to pay for gas fees.

In other words, you don’t need to bridge twice.

Follow the steps below to withdraw ETH or ERC-20 tokens from Ethereum to Polygon
using a bridge.

Pro Tip: Before making any transaction on the Ethereum network, we recommend
checking the price to use the network (also known as the gas fee).

You can find the current gas price here or here.

We consider anything under 100 gwei (a denomination of ETH) per transaction to be

a fair price to pay considering the demand to use the network. If the transaction fee is
above 100 gwei, we recommend checking back later for a lower price.

Step 1:

• Click “Polygon Bridge” on the Polygon Wallet Page.

• See the picture below.

Step 2:

• Select the asset and amount you want to transfer to

the Polygon Network.

• See the picture at right.

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 Step 3:

• Remember, we’re making a transaction from the Ethereum network, so make

sure your MetaMask is switched to the Ethereum Network (see the Pro Tip
box in Part 1 above for a refresher on how to do this).

• Click “Transfer.”

• If you’re sending an ERC-20 token, you’ll be prompted to complete an initial

transaction to approve spending that token. This will cost you roughly $25
depending on Ethereum’s network activity.

Step 4:

• Now that you’ve approved the spending of this ERC-20 token, you can then hit
“Transfer.”

• This will display a window with the estimated Ethereum transaction fee you’ll pay
to send assets from Ethereum to the Polygon Network.

• You can expect to pay roughly $50–100 depending on network activity.

• See the picture below.

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 Step 5:

• Click “Continue.”

• Next, MetaMask will ask you to confirm the transaction with a signature.

• Once signed, your selected tokens will be on their way to the Polygon Network. This
process can take roughly 10 minutes.

• Remember, once on the Polygon Network, you’ll need MATIC tokens to carry out
any sort of transaction.

• If you transferred MATIC tokens and intend to sell them, make sure you leave
a small amount for future transactions. One MATIC token will be sufficient for
several future transactions.

• If you transferred ETH like we did in the example above, or another token aside
from MATIC, you’ll need to follow the extra step below to get MATIC tokens to pay
for fees.

Step 6:

• If you’re transferring a token other than MATIC, return to the main Polygon Wallet
page and click “Polygon Wallet.”

• From here, you’ll see the assets you transferred to Polygon. Next to MATIC Token,
click “Swap for Gas.”

• Note: Since you’re making a transaction on the Polygon Network, make sure your
MetaMask wallet is switched to the Polygon Network. If your MetaMask wallet is on
the Ethereum network, your transaction will not be completed.

• See the picture below.

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 Step 7:

• Next, select the token you wish to swap for MATIC from the drop-down menu.

• Once you select “approve,” MetaMask will prompt you to sign a transaction to
approve the spending of these assets.

• After the approval transaction is complete, click “Swap” to complete the transaction.

Pro Tip: If the Polygon web interface doesn’t recognize the asset you just transferred,
go to the dropdown menu and re-select the asset.

You can always check the assets in your account and the status of a transaction by
entering your wallet address into polygonscan.com.

You can find your address within the MetaMask extension. This is just below the
account name.

If you click the address, it will copy to your clipboard which you can then paste into
PolygonScan.

Once you’ve verified the transaction has completed on the blockchain, refresh the web
page and you should see your asset.

Sometimes the transaction will finalize on the blockchain, but it takes the web page a
few minutes to recognize it.

Congratulations. You now have assets on the Polygon Network with MATIC tokens to pay
for transactions.

Part 3: Trading on the Polygon Network

Once you’ve bridged assets to the Polygon Network, you can take advantage of the
network’s low transaction fees to buy assets.

We recommend using 0x to trade on Polygon. As you may recall, 0x is a decentralized

exchange (DEX) aggregator that works to find the best possible price across multiple
exchanges.

Many Polygon users favor 0x. That’s how it’s facilitated nearly $1 billion in trading volume
over the past 30 days.

Here are the steps for trading using 0x on Polygon…

Step 1:

• Access the trading portal by going to Matcha.xyz.

• Select “Start Trading” in the middle of the page. This will give you a list of assets to
choose from.

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 Step 2:

• From here, connect your MetaMask wallet in the upper right-hand corner. Once
again, be sure your MetaMask is on the Polygon Network.

• You’ll also need to be sure Matcha is switched to the Polygon Network.

• See the image below.

Step 3:

• On Matcha, you’ll notice only a few of the major crypto assets are listed. If you’re
looking for a more extensive list, you can go to the DEXs directly. For this, we
recommend using SushiSwap or QuickSwap.

These are two of the most popular DEXs on Polygon with over $1 billion in
combined assets as of writing. For those familiar with Uniswap on Ethereum, you
will find these two applications work in similar fashion.

Trading on Polygon is near instant and costs roughly $0.05 in network transaction fees.

This represents a massive improvement when compared to Ethereum’s roughly $50–100

transaction fees, depending on the level of network activity.

Again, it’s important to note, you won’t find every ERC-20 token on Polygon. But you’ll
find you can purchase many of our recommended Ethereum-based (ERC-20) tokens on
Polygon.

More tokens will continue making their way to Polygon as users become increasingly
comfortable with using Ethereum scaling solutions.

Part 4: Withdrawing From the Polygon Network

There are two methods to withdraw funds from the Polygon Network.

The first is sending MATIC tokens directly to the exchange you withdrew from. This will be
the cheapest method, costing just a few cents.

As always, when depositing assets into an exchange with this method, always remember to
check the network address you’re depositing into.

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 For example, if you wish to deposit MATIC tokens from the Polygon Network, make sure
you’re sending them to the Polygon address the exchange provides. If you mistakenly send
them to an Ethereum or other network address, you risk losing your funds.

The second method is bridging your funds back to Ethereum. Once there, you can
withdraw your funds to any exchange you’d like. Remember, this method is more costly, so
we recommend following the instructions below carefully if you choose it.

Reminder: We only recommend sending the major stablecoins (DAI, USDC, or USDT),
ETH, and MATIC between networks since not every token on Polygon exists on Ethereum.

If you’re an advanced user and wish to transfer other tokens between the two networks,
make sure you check mapper.matic.today to ensure the token can be easily transferred.

Step 1:

• To bridge funds from the Polygon Network back to the Ethereum mainnet, head to
the Polygon Bridge.

• When transferring assets, double-check you’ve selected the correct destination

(from Polygon to Ethereum).

• Click “Transfer.”

• See the picture below.

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 Step 2:

• A pop-up window will remind you that the transfer can take up to three hours…
And up to one week if you’re withdrawing MATIC tokens.

• The next window will display the cost to complete the withdrawal on the Ethereum
mainnet. This will depend on network activity. Expect to pay roughly $100 to
withdraw an asset from the Polygon Network to Ethereum.

Step 3:

• After initiating the transaction, you can monitor the status of the transaction by
heading to the Polygon Wallet page.

• From here, you can click “Transaction in Progress” in the upper-right corner to view
the status (shown below).

Step 4:

• Once the withdrawal has made its way to the Ethereum network, this will change to
“Action Required.”

• Again, expect this to take up to three hours for ETH and ERC-20 tokens… And up to
one week if you’re withdrawing MATIC tokens.

• When it’s ready, you’ll need to complete one more transaction on the Ethereum
network to retrieve your funds.

• Since we’re completing this final transaction on the Ethereum network, you’ll need
to switch your MetaMask to the Ethereum network. (Instructions on switching this
shown above).

• This final transaction to retrieve your funds will cost roughly $100 depending on
the network’s activity.

• When completed, you’ll now have funds in your Ethereum wallet and ready to send
to any exchange you wish.

Reminder: For our U.S. users who wish to stay on Coinbase, keep in mind Coinbase
is expected to expand support to the Polygon network in the months ahead.

Withdrawing directly to the Coinbase exchange when it’s ready can save you over
$100 in transaction fees by bypassing the Ethereum network.

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 Customer Care: Toll-Free: (888) 501-2598, International: (561) 921-8774, Mon–Fri, 9am–7pm ET, or email support@palmbeachgroup.com.

© 2021 Common Sense Publishing, LLC, 55 NE 5th Avenue, Delray Beach, FL 33483. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is
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