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I think you are correct, since USDC in my Phantom wallet is on Etherium network, but my ETH balance is zero.
So my next step should be to fund my ETH balance on Phantom, but how can I do it without triggering any purchase from my debit card. I am in a new country and unsure if its safe to transfer money there.
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Hmmm, I might guess that it's that you don't have any funds of whatever chain the USDC is on. You need some to be able to transfer it.
This is my guess what the issue is.