How to buy Bitcoins in Argentina

For years, the cryptocurrencies They became undisputed protagonists of finance. The particularity of digital assets is that it is a volatile market, in which quotes can change abruptly in a matter of minutes. The advantage is that they can be purchased in pesos and obtain profits in dollars, without the restrictions that exist today in the exchange market.

In this context, this Monday the leading cryptocurrency, the bitcoinreached a new All Time Hight (ATH), that is, its highest point in history after reaching US$71,600.

How do cryptocurrencies work?

Behind 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 met, 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 creating blocks and each block generates new bitcoins. Every 10 minutes one of them closes. In 2009, every time a block was closed, 50 bitcoins were generated.

Is it safe to trade cryptocurrencies?

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, the transaction is said to be absolutely confirmed. The blockchain is publicly accessible. Each transaction has an address. The system is not anonymous, but it does not reveal personal data either.

How to trade cryptocurrencies?

The best way to use them is through a digital wallet. Some of them come in a software version. 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). Since the blockchain stores addresses which can be recorded for each transaction, one address is used and then discarded.

The wallets use 12 or 24 words to retrieve them and access the bitcoins. These words are key. If you lose them, it is impossible to recover their content. Wallets can be used and then deleted the app, but the words will always be needed when reinstalling the app. As we said previously, a QR code is used for transfers and once six validations are completed the transaction is 100% confirmed. When it comes to owning a wallet, we recommend reading about the security they have.

There are also hardware wallets. These are devices that are bought on the market and that internally store 12 or 24 words, which never reach the network. It connects to the PC to make transfers, but the passwords are protected. Some of them are Trezor, Ledger Nano S, KeepKey. Now one may wonder, what if I don’t know anyone to buy or sell a bitcoin from?

How to buy Bitcoin and other cryptocurrencies?

In Argentina there are many pages where you register with your personal data, you can deposit pesos and buy bitcoins online. Here the spirit of cryptocurrencies is somewhat lost, which means no intermediaries, and the non-use of personal data. However, one can acquire a percentage of a bitcoin on these websites and later download it to a personal wallet.

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Steps to buy and sell Bitcoin in an app

1. To operate with cryptocurrencies you must use a platform where you open an account to buy and sell. It is in practice a digital “exchange house”. In Argentina there are several companies that offer this service.
2. To register, personal data, a photo of your ID and a selfie are enough to verify the user’s identity.
3. 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.
4. Crediting of funds may take between 24 and 48 hours. And it should be said that each platform has limits on the amount that can be operated.
5. Once the funds are in the wallet, the investor can start trading. You just have to indicate on the platform which cryptocurrency and how much you want to buy. The conversion is made at the current exchange rate.
6. Platforms usually impose a minimum investment amount, in some cases equivalent to $10.
7. One of the most popular alternatives is Ethereum, with a similar logic. But there are also others like the DAI or the USD Coin, known as “stablecoins” because their value is linked to 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 purchasing bitcoins.
• Custody is in the companies, just like a traditional bank requires the identification of clients, since they are subject to anti-money laundering regulations.
• The wallets offered by the exchanges are guarded and protected by them, although they have some limitations. In the case of exchanges in Argentina, these usually operate in a very similar way to a traditional bank, that is, they ask for the identification of clients and proof of the funds used to invest.
• The exchange must be licensed by the international standard that regulates fintechs or have fund protection insurance.
• After having a cryptocurrency wallet or account, there are various modalities for transactions and buying bitcoin in Argentina: through an exchange or person-to-person (P2P).

Commissions for operating with cryptocurrencies

The virtual “exchange houses” in which cryptocurrencies are traded already charge 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 what was deposited, depending on the amount and the modality. Then, the purchase and sale usually has a commission of 1%. Sometimes, but not always, there may be a fee to withdraw the investment, especially if you want to hold the cash.

What to do with Bitcoins?

Once you own bitcoins or other cryptocurrencies, the options are the same as with any financial instrument. That is to say, You can save it waiting for its value to rise, or sell it whenever 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 businesses has been increasing, and they are even used for real estate or car operations. Cryptocurrencies can also be invested on the same platforms where they are purchased.

Each crypto wallet has its own code that operates as if it were the CBU.