Lately, many investors are wondering why their $30 in Binance isn’t increasing. One example involves a woman who invested in #Bitcoin but mistakenly held her funds in USDC, a stablecoin, expecting similar growth. Understanding the difference between stablecoins, altcoins, and Bitcoin is crucial for avoiding these pitfalls.
Stablecoins like USDC are designed to maintain a fixed value, usually tied to a stable asset like the US dollar. This means there’s no price growth to expect from these coins, they’re intended to stay stable, not fluctuate. On the other hand, altcoins and Bitcoin can experience dramatic price changes, offering opportunities for gains but also significant risks.
If you’re holding stablecoins, don’t expect them to rise in value like Bitcoin or altcoins. They offer stability, not growth, perfect for those looking to avoid volatility but not ideal for those seeking big profits.
Why Did My $30 Turn into $22 After Withdrawing?
When converting your crypto to fiat money (like dollars), you’ll always notice a small drop in the final amount. This happens due to transaction fees, which can range from 0.2% to as much as 15%, depending on the exchange platform and the type of crypto you’re selling. This means by the time you withdraw your funds to your bank, fees will have reduced the original amount.
These fees vary based on the platform and the specific cryptocurrency being sold. Buyers of your crypto might also add their own fees or commissions, making this a normal part of the exchange process. Always keep this in mind when calculating your withdrawals!
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