In a country like Argentina, where economic ups and downs are a constant, investing in Bitcoin is presented as an increasingly attractive option. With outstanding performance in 2024, Bitcoin has not only outperformed other common investment instruments, but also offers a viable alternative to inflation. However, not everything is so simple for the end user. In this note, we will explore why invest in Bitcoin, what facilities and barriers exist for Argentines, and how its comparative performance can help make informed decisions. In addition, we will include a step-by-step guide to easily acquire Bitcoin in the country.
Bitcoin in Argentina: context and relevance
Argentina faces a complex economic panorama, marked by high inflation, although in constant decline. In October 2024, monthly inflation was 2.69%, the lowest since November 2021, while annualized inflation remains at 192.99%. According to projections from the Central Bank (REM), annual inflation could close at 120%, a high level, although significantly lower than the previous year.
On the other hand, the Argentine peso has shown some strength against the dollar during 2024, achieving moderate appreciation in a context of stricter economic policies and greater exchange control. This behavior marks a contrast with previous years, when the depreciation of the peso was constant. Despite this improvement, savers and investors are looking for alternatives to protect themselves against inflation and diversify their portfolio, where Bitcoin appears as a prominent option.
Step by Step Guide to Buy Bitcoin in Argentina
Buying Bitcoin in Argentina can be a simple process if you use the right tools. Here is a practical guide to acquiring Bitcoin with Argentine pesos:
- Select a Reliable Platform: Options such as Binance, Ripio, SatoshiTango and Bitso stand out for their ease of use and variety of payment methods. Options are beginning to appear in ALyCs as well, such as the case of Cocos.
- Register and Verify Identity: Provide your ID and complete the identity validation process on the platform.
- Deposit Funds in Argentine Pesos: Use bank transfers, electronic wallets such as Mercado Pago or cash on networks such as Pago Fácil.
- Buy Bitcoin: Indicate the amount in pesos that you want to convert into Bitcoin, check the costs and confirm the operation.
- Store your Bitcoins: Use personal wallets for greater security, whether hardware (Ledger, Trezor), software or online.
Facilities and barriers for end users
Investing in Bitcoin in Argentina has aspects that make it very accessible, but it also presents challenges that may discourage some users. The first thing that surprises is the number of reliable platforms available in the country. Providers like Binance, Ripio, and Bitso offer simple interfaces, support in Spanish, and the ability to trade in Argentine pesos. This is a big advance compared to a few years ago, when Argentines had to look for international alternatives, deal with complicated currency conversion processes or even take risks in informal operations.
In addition, payment options are varied. You can invest from bank transfers to cash in networks such as Pago Fácil or Rapipago. This reflects that it is not necessary to be an expert in financial technology to access the cryptocurrency market. However, this broad access comes at a cost: commissions. For small investors, the costs associated with operations, which can range between 1% and 6%, represent a barrier. Added to this is that some platforms charge a price differential that is not always explicit.
Another aspect that deserves attention is the lack of financial education. While many Argentines have learned to deal with dollar volatility and inflation, Bitcoin is a different world. It is not simply an “alternative to the dollar”; It involves learning about digital wallets, security, and how a market that never closes works. This can be intimidating, but it is also an opportunity for those who want to get out of their comfort zone and understand a growing global financial system.
Finally, there is the issue of volatility. Bitcoin has shown exceptional performance in 2024, but we cannot ignore that it can also fall as strongly as it rises. For someone used to more traditional investments, such as bonds or time deposits, this volatility may seem daunting. However, this is where the risk mentality comes in. If one understands that this is a long-term asset, capable of overcoming periods of uncertainty, Bitcoin becomes an opportunity.
Performance Comparison in 2024
When comparing Bitcoin with other financial instruments in Argentina, the differences are notable. With a return of more than 100% in dollars, Bitcoin has left behind sovereign bonds, local stocks and other common assets. But this does not mean that it is automatically the best option for everyone. Sovereign bonds, for example, have offered returns of 45% in dollars and close to 88% in pesos. For those seeking stability and lower risk, these instruments remain attractive. However, here is a point to consider: country risk. The bonds depend on the Argentine government’s compliance, something that has not always been consistent.
On the other hand, the Merval index has also shown remarkable performance, with returns of 49% in dollars. This type of investment is ideal for those who believe in the growth of local businesses and are willing to take some risk. However, we cannot forget that the Argentine stock market is deeply influenced by the local economy, which makes it less predictable.
Then there are bonds in pesos, such as Botes, which have registered returns of 127% in pesos and 75% in dollars. This makes them an interesting option for those seeking to directly combat inflation. But here comes a crucial issue: dependence on internal economic stability. While the peso has appreciated in 2024, recent history reminds us that this type of asset can be vulnerable to abrupt changes in the market.
In this panorama, Bitcoin stands out for its independence from the Argentine economy and its long-term growth potential. However, it is not for everyone. It is an asset that requires risk tolerance and a strategic vision. While bonds or stocks can offer consistent returns, Bitcoin treads completely different territory. It’s not just about investing; is to participate in a global financial paradigm shift. For those willing to understand this, the potential is immense. For those looking for something more predictable, Bitcoin is probably not the first choice.
Conclusion: Is it advisable to invest in Bitcoin in Argentina?
Bitcoin represents a valuable tool to protect against inflation, diversify portfolios and obtain high returns in a still uncertain economic environment. While the Argentine peso has shown appreciation in 2024, still high inflation rates and the search for global alternatives reinforce Bitcoin’s appeal.
With a simple step-by-step guide and a comparative analysis of returns, it is clear that Bitcoin can be an interesting option for Argentines. However, it is crucial that investors educate, diversify and manage their portfolio responsibly. For those willing to learn and take on challenges, Bitcoin remains one of the best investment options in the current context of Argentina.
Cryptocurrency specialist and Founder of Crossing Capital
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
