When converting your Peso to cryptocurrency, you may notice a difference in the equivalent Peso amount found under your cryptocurrency balance. This is simply because of the price spread between Buy and Sell rates.
Why Does This Happen?
Price Spread:
The difference between the buy rate (the price at which you purchase cryptocurrency) and the sell rate (the price at which you can sell it). This spread is influenced by market demand and supply.
Example of Conversion:
- Suppose you want to buy Bitcoin (BTC) with 100 PHP.
- You click on the Buy/Sell button on the homepage and select Buy crypto.
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- At that moment, the buy rate is approximately 1 BTC = 4,113,025.94 PHP.
- After your purchase, you receive 0.0000243 BTC, and 100 PHP is deducted from your wallet
Viewing Your Balance: After completing the transaction, you check your BTC balance and see 0.0000243 BTC. However, the equivalent Peso amount shows only 96.42 PHP instead of 100 PHP.
Understanding the Discrepancy
The equivalent Peso amount displayed reflects the sell rate, which is different from the buy rate. For instance:
- At the time of your purchase, while buying at 1 BTC ≈ 4,113,025.94 PHP, the sell rate was approximately 1 BTC ≈ 3,968,225.51 PHP.
- You check your BTC balance and see the 0.0000243 BTC in your wallet. However, the equivalent Peso amount under this only shows 96.42 PHP.
Market Dynamics
Please be informed that the rates of cryptocurrencies are based on changing global market activity. The cryptocurrency spread, or the difference that you notice between the buy rate and sell rate, is determined by:
- Supply and Demand: The balance between buyers and sellers in the market.
- Volatility: Rapid changes in cryptocurrency prices can lead to significant differences between buy and sell rates.
Since the rates observed on our platform are dynamically calculated to mirror the network's current activities, we can expect discrepancies to be seen whenever there is an imbalance between the volume of people selling their assets in comparison to the number of people purchasing the same tokens.
Disclaimer: Buying cryptocurrencies carries a high level of risk, and may not be suitable for everyone. Cryptocurrency prices are highly volatile and can go up and down in real-time. Make sure to only buy as much as you can afford to lose.
Will my BTC value ever go back to an equivalent amount of 100 PHP?
Due to volatility of BTC prices, there is no assurance that your BTC balance would be equal to 100 PHP again. However, there is still a chance of this possibility in the future if the BTC prices go up and the sell rate reaches 1 BTC ≈ 4,113,025.94 PHP (the buy rate at the time). If the sell rate goes even higher than the original buy rate, then there is possibility to have an equivalent amount more than 100 PHP.
On the other hand, there is also a possibility that BTC prices may go lower, so the equivalent amount would go below 96.42 PHP. Please note that the equivalent PHP value of your BTC may still change up until you convert your funds to lock in a Sell rate that you find favorable to you.
Frequently Asked Questions
How can I check current buy and sell rates?
You can check current rates on your trading platform's dashboard under the Prices tab. You may also check the Buy/Sell tab for real-time updates.