For years, the cryptocurrencies they became undisputed protagonists of finance. The particularity of digital assets is that it is a volatile market, in which prices can change abruptly in a matter of minutes. The advantage is that they can be bought in pesos and earn profits in dollars, without the restrictions that exist today in the exchange market.
How does it work? behind the bitcoin there is the blockchain. This is a sophisticated digital system in which transactions are immersed, which can be audited and validated by hundreds of thousands of people throughout the world. When a certain number of transactions are fulfilled, they are grouped into a block. The miners are in charge of carrying out these tasks.. When a block is formed, the miner must discover a key number that will allow it to be closed. Miners earn commissions for assembling blocks and also each block generates new bitcoins. Every 10 minutes one of them closes. In 2009, each time a block was closed, 50 bitcoins were generated.
It is safe? many of us already use digital money without realizing it. When we make a transaction, a purchase with a credit or debit card, we are doing it. Unlike these cases, there is no intermediary company: for example, a bank, Mercado Pago, PayPal, or other examples. Here money moves from person to person. It is validated by the miners, it is validated by the nodes. When it has six validations, it is said that the transaction is absolutely confirmed. The blockchain is publicly accessible. Every transaction has an address. The system is not anonymous but it does not reveal personal data either.
The best way to use them is through a digital wallet. Some of them come in software version. The wallets can be used on your mobile device or some on your personal computer. It is recommended to have two different applications and not the same ones (one on the phone and one on the PC). As the blockchain stores the addresses which can be registered for each transaction, an address is used and then it is discarded.
The wallets use 12 or 24 words to retrieve them and access the bitcoins. These words are key. In case of losing them, it is impossible to recover their content. The wallets can be used and then delete the app but the words will always be needed when reinstalling the app. As we said before, a QR code is used for transfers and once six validations are completed, the transaction is 100% confirmed. When owning a wallet, we recommend reading about the security they have.
There are also hardware wallets. These are little devices that are bought in the market and that internally store the 12 or 24 words, which never reach the Internet. It connects to the PC to make the transfers but the passwords are protected. Some of them are Trezor, Ledger Nano S, KeepKey. Now one will wonder, what if I don’t know anyone to buy or sell a bitcoin from?
In Argentina there are many pages in which one registers with their personal data, can deposit pesos and buy bitcoins online. Here the spirit of the cryptocurrencies that suppose no intermediaries, and the non-use of personal data, is lost a bit. However, one can acquire a percentage of a bitcoin on these websites and later download it to a personal wallet.
Steps to buy and sell Bitcoin in an app
To operate with cryptocurrencies, you must use a platform in which you open an account to be able to buy and sell. It is in practice a digital “exchange house”. In Argentina there are several companies that offer this service.
To register, personal data, a photo of the DNI and a selfie are enough to verify the identity of the user.
The next is deposit the moneyin pesos, which can be made by transfer from a bank account, another virtual wallet such as Mercado Pago, and in some cases in cash through stores such as Pago Fácil or Rapipago.
The accreditation of the funds can take between 24 and 48 hours. And it should be said that each platform has limits on the amount that can be traded.
Once the funds are in the wallet, the investor can start trading. You only have to indicate on the platform which cryptocurrency and how much you want to buy. The conversion is made at the current exchange rate.
The platforms usually impose a minimum investment amount, in some cases equivalent to 10 dollars.
One of the most popular alternatives is ethereum, with a similar logic. But there are also others such as the DAI or the USD Coin, known as “stablecoins” because their value is linked to that of the dollar, which makes them less volatile options.
Data to take into account
- The user is the owner and responsible for the keysit will be impossible to recover the coins after the purchase of bitcoins.
- Custody is in the companies, just like a traditional bank is requested the identification of clients since they are subject to anti-laundering regulations.
- The wallets that exchanges offer us are guarded and protected by them, although they have some limitations. In the case of exchanges in Argentina, these usually work in a very similar way to a traditional bank, that is, they ask for the identification of the clients and proof of the funds used to invest.
- The “exchange” must be licensed by the international standard that regulates fintech or have fund protection insurance.
- After having the wallet or account in cryptocurrencies, there are various modalities for transactions and buying bitcoin in Argentina: through an exchange or from person to person (P2P).
Commissions for trading cryptocurrencies
The virtual “exchange houses” in which cryptocurrencies are traded charge, of course, a commission. What they do is set, for the different operations or movements, commissions and charges that should be taken into account before starting to invest.
For example, when depositing the pesos, they usually keep between 0.5% and 6% of the income, depending on the amount and the modality. Then, the purchase-sale usually has a commission of 1%. Sometimes, not always, there may be a charge to withdraw the investment, especially if you want to have the cash.
What to do with the Bitcoin?
Once you own bitcoins or another cryptocurrency, the options are the same as with any financial instrument. That is to say, You can save waiting for its value to rise, or sell it at the time you see fit.
Of course they are also transferable to other people, anywhere in the world, and can be used for purchases. For example, acceptance in stores is increasing, and they are even used for real estate or car operations. Cryptocurrencies can also be invested on the same platforms where they are acquired.
Each crypto wallet has its own code that operates as if it were the CBU.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
