🧠 Understanding Crypto: What are Layer-1 & Layer-2 really?
🚨 Have you ever wondered why Ethereum becomes so expensive during high demand? Or why projects like Polygon suddenly skyrocket?
👉 The answer lies in one of the most important concepts in the blockchain world: Layer-1 vs. Layer-2.
📚 Briefly explained:
- Layer-1 is the main blockchain itself – e.g., Bitcoin, Ethereum, Solana.
- It governs consensus, security & decentralization.
- But: It is often slow & expensive during high demand.
- Layer-2 is an extension that builds on Layer-1.
- It processes transactions faster & cheaper.
- Examples: Polygon, Arbitrum, Optimism.
💡 Why this is important for you as a trader:
- Layer-2 projects like Arbitrum or zkSync offer low gas fees & high speed – ideal for DEX trading & NFT mints.
- You can benefit from scaling through early investments in Layer-2 ecosystems.
- Many Layer-2 tokens are still undervalued – Alpha potential!
📈 My personal tip:
I prefer to trade on Layer-2s when ETH is above 20 Gwei*. This way I save on fees & often get better executions. Especially with sniper trades or NFT drops, it’s a game changer!
Gwei = unit of measurement for gas fees in the Ethereum network
❓ What do you think: Will Layer-2 replace Ethereum in the long term or just complement it?
👇 Share your opinion in the comments!
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