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.
As an example, you want to buy BTC with 100 PHP. You may click on the Buy/Sell button on the Home page, and click the Buy crypto button at the bottom of my screen.
At this moment, the buy rate of PHP to BTC is 1 BTC ≈ 2,400,403.74 PHP. After clicking the [Purchase] button, you will immediately receive 0.0000416 BTC. You will also notice that 100 PHP was deducted from your Peso wallet.
You then check your BTC balance and see the 0.0000416 BTC in your wallet. However, the equivalent Peso amount under this only shows 96.31 PHP. Why is this no longer equivalent to 100 PHP?
This is because the equivalent Peso amount is based on the sell rate. At the same time I converted my PHP with the buy rate of 1 BTC ≈ 2,400,403.74 PHP, the sell rate was 1 BTC ≈ 2,364,917.90 PHP.
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 the global market supply and demand as well as the volatility of the prices. 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.
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 the BTC 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 ≈ 2,400,403.74 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 96.31 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.
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.
Contact us through the Coins app or Coins Support Form should you need any further assistance.