๐ด Why Isnโt My Crypto Investment Growing? Common Misconceptions
A recent query highlighted confusion: a lady asked why her $28 in Binance wasnโt increasing in value. She had invested in USDT (a stablecoin), mistakenly believing it would grow like #Bitcoin โ๏ธ. This raises an important point: understanding the differences between stablecoins, altcoins, and Bitcoin is crucial for crypto success.
๐ก Key Insights
- Stablecoins (e.g., USDT): Designed to maintain a stable price, so they donโt increase in value.
- Altcoins: Alternatives to Bitcoin that are highly volatile and can experience sharp gains or losses.
- Bitcoin: A volatile asset with significant profit potential but equal risk for losses.
- Tokens: Including meme coins and NFTs, these are also highly volatile.
If youโre holding USDT, donโt expect growth unless youโre earning rewards through specific programs. Stablecoins are meant to remain steady, unlike other cryptocurrencies that fluctuate but carry greater risk.
๐ป Why Did I Lose Money?
If you had $28 in Binance USDT but now see only $20 in your bank, transaction fees are likely to blame. ๐ธ
- Every platform charges fees ranging from 0.1% to 10%, depending on the currency and transaction type.
- Converting crypto to fiat incurs additional costs, including commissions charged by buyers.
๐ก Important Takeaway
These fees are standard in crypto trading and not a scam. Expect to lose small amounts during conversionsโitโs just part of the process. Understanding these basics will help you navigate the crypto world with confidence. ๐
