Algorand Minimum Balance: 0.1 ALGO Plus 0.1 per Asset

An Algorand account must keep a minimum balance of 0.1 ALGO, and that minimum grows by 0.1 ALGO for every asset the account has opted in to — USDC, USDT or any other Algorand Standard Asset (ASA). Opting in to applications raises it further. Transaction fees are separate and small: the minimum fee is 0.001 ALGO per transaction. These two numbers explain the usual Algorand puzzles: why a wallet cannot send its entire balance, why a USDC withdrawal to a fresh address fails, and why some ALGO stays “locked” after you have sold your tokens.

What the minimum balance covers

Every account and every asset holding is stored by every node on the network. The minimum balance requirement makes each of those records cost a little ALGO for as long as it exists. The base 0.1 ALGO keeps the account itself; each opted-in asset is another record, so it adds another 0.1 ALGO. Applications that store data per user (local state) add 0.1 ALGO for the opt-in plus an amount per storage slot defined by the app's schema. Creating an asset or an application yourself also raises the minimum.

Opt-in: the step people miss

On Algorand an account cannot receive an asset until it has opted in to it. Opting in is a zero-amount asset transfer to yourself; it costs the 0.001 ALGO fee and raises your minimum balance by 0.1 ALGO. Wallets such as Pera and Defly do this with an “add asset” button. If an exchange tries to send USDC to an address that has not opted in to USDC, the transfer is rejected. This is the most common reason an Algorand token withdrawal fails or is refused by the exchange's address check.

• Fund the new account with at least 0.1 ALGO, better 0.5–1 ALGO.
• Add (opt in to) the asset you want to receive. Check the asset ID — scam tokens copy names and logos.
• Only then withdraw the asset to the address.

Fees: 0.001 ALGO per transaction

The minimum fee is 1,000 microAlgos, or 0.001 ALGO. Under heavy load a congestion fee per byte can apply, but for ordinary payments the fee stays at the minimum. Algorand groups up to 16 transactions into an atomic group that succeeds or fails as a whole, and fees can be pooled within a group: one transaction can pay the fees for others. Blocks arrive in under three seconds and are final immediately — there are no forks to wait out, which is why receiving services need only one confirmation.

Recovering the locked ALGO

1. Opt out of assets you no longer hold. Send the remaining balance of the asset away (or to its creator with close-out) and the 0.1 ALGO for that asset is freed.
2. Clear or close out applications you have opted in to.
3. Close the account. A payment with the close-remainder-to field sends the entire balance, including the minimum, to another address and removes the account. Close to your own wallet, not to an exchange deposit address, unless the exchange explicitly supports it.

Rekeying: a different topic with a similar risk

Algorand lets an account be rekeyed, so that a different key signs for it. It is a powerful feature for security setups, but it is also used in scams: a malicious site asks you to sign a transaction that rekeys your account to the scammer, after which they control it even though your address and seed phrase are unchanged. Read every transaction your wallet asks you to sign; a rekey is shown explicitly in good wallets.

ALGO on KOT.CASH

The liquidity provider accepts ALGO on the Algorand network and credits it after one block. The minimum for ALGO to USDT is currently about 266 ALGO. Use the Simple Swap form and choose ALGO on the send side; the deposit address is a regular Algorand address and no memo is needed. When selling, remember you can only send the balance above your minimum: an account holding 300 ALGO and opted in to two assets can send at most 299.7 ALGO minus the fee unless you close it. Confirmation counts for all networks are in the deposit confirmations table.

Spam assets and the minimum balance

Unlike chains where anyone can push tokens into your wallet, Algorand cannot send you an asset you have not opted in to. That protects against unwanted airdrops, but it also means each opt-in you accept costs you 0.1 ALGO of locked balance. Be selective: opt in only to assets you actually plan to receive, and verify the asset ID in an explorer such as Pera Explorer or Allo before accepting. Removing assets you no longer need is the cheapest way to free ALGO for a swap.