A woman recently wondered why her $28 in Binance wasn’t increasing in value. She had been led to believe that Bitcoin and other cryptocurrencies would grow over time, but mistakenly thought that USDT (a stablecoin) would work the same way. Understanding the different types of cryptocurrencies—stablecoins, altcoins, and Bitcoin—is crucial.
- **Stablecoins like USDT** are designed to maintain a stable value, meaning they are not intended to increase over time. Their main purpose is to provide a stable alternative in the volatile world of cryptocurrencies.
- **Altcoins** are alternative cryptocurrencies to Bitcoin and are often just as volatile, offering potential gains but also significant risks.
- **Bitcoin** is highly volatile, meaning it can experience significant gains or losses.
- **Tokens, including meme coins or NFTs**, are also subject to high volatility and can be very risky.
If you’re holding money in USDT, don’t expect it to grow unless you’re earning minimal rewards through specific programs. Stablecoins are meant to maintain a stable value, unlike other cryptocurrencies that can fluctuate but come with higher risks.
Now, why did your $28 in Binance USDT turn into $20 when you transferred it to your bank?
When you convert cryptocurrency to fiat (real money), platforms charge fees that can range from 0.1% to 10%, depending on the platform and the type of currency you’re converting. This means the amount you receive in your bank account will almost always be less than what you had initially in USDT.
These fees vary depending on the platform and the currency being sold, and in some cases, the person buying your cryptocurrency might also charge a commission. These fees are a standard part of trading in the cryptocurrency world and shouldn’t cause alarm. It’s just part of the process, so expect minor losses when converting to fiat. This doesn’t mean you were cheated—it’s just a normal part of trading.
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