Financial education is essential for Argentinians seeking investment options to make informed decisions about what to do with their money, enhancing inclusion and the adoption of new technologies.
Argentina is among the top 15 countries with the highest cryptocurrency adoption in the world and ranks second in Latin America, only behind Brazil. Every day, and especially with the significant reduction in fixed-term interest rates in recent months, more Argentinians are entering the crypto universe seeking new investment opportunities, whether in traditional cryptocurrencies or stablecoins, also known as crypto dollars. Cryptos are a great variable income alternative, offering good returns and immediate withdrawal if you need to use the money.
However, the search for alternatives to preserve wealth in the face of high inflation or options that yield higher returns can be overwhelming.
Though it may seem complex at first, you don't need to be an economist or a finance expert to enter this world. As with any investment, it is recommended to read about the subject from reliable sources and take it step by step.
Although it may appear difficult at first glance, it is a universe truly accessible to everyone, with a lot of information at hand. There is endless content in all formats (blogs, videos, podcasts, and articles) to inform oneself about the various investment alternatives, which can offer different returns to grow your income in a simple and easy way.
Argentina is among the top 15 countries with the highest cryptocurrency adoption in the world and ranks second in Latin America, only behind Brazil.
The main advantage offered by the purchase of digital assets is that it can operate securely, easily, 24 hours a day, seven days a week; no minimum balances are required, liquidity is immediate, and profitability is competitive compared to traditional investments. Additionally, international transactions are much faster and cheaper than through the traditional banking system.
What are cryptos used for?
Cryptocurrencies represent a new conception of money that is not issued by a central bank but is completely decentralized; that is, no individual or institution can control them on their own. Cryptocurrencies are virtual currencies, so all transactions are done online and are based on cryptography, which are encrypted algorithms, meaning files that cannot be read by unauthorized persons, providing great security for information. These encrypted algorithms make them secure currencies that cannot be intercepted because once the transaction is made, it cannot be undone, forged, or altered.
What types of currencies are there?
We can basically divide them into two groups. The first group consists of fluctuating cryptocurrencies, that is, those that change in price based on supply and demand. There are several cryptocurrencies in this group, the most prominent of which have serious projects backing them, and it's best to get informed about each one. Bitcoin (or BTC) was the first digital currency, revolutionizing the world since its introduction in 2008 and remaining the most chosen. But there are also altcoins (derived from the term alternative + coin), including all currencies that are not bitcoin, many of which are also popular, like ether (ETH), the second most used cryptocurrency globally, with significant value growth recently.
The other type of cryptocurrency is stablecoins. Unlike the former, these do not vary in price and maintain their value against an asset: a dollar, a peso, a euro, an ounce of gold, etc. In Argentina, the most chosen are stablecoins with 1:1 parity with the dollar: digital dollars (USDC) and USDT are the two most demanded in the country and are usually preferred by those looking to save to preserve income from peso devaluation and by more conservative individuals seeking to dollarize easily and who might not dare to invest in other riskier, but higher yielding, currencies.
How to start?
Before starting to trade, one must consider the security and trust provided by various platforms, especially those with certified transparency principles and complying with international regulations. Bitso, for example, was founded a decade ago and not only meets the highest international standard but also self-regulates beyond local requirements to protect all customers operating on its platform.
To begin, it's best to try and navigate little by little on the most reliable apps.
How to increase my investment?
Once you start and feel more secure, you can gradually increase the investment. As with any asset, an important point to consider is diversifying the investment. It is never advisable to allocate all funds to a single financial resource, whether in crypto or any traditional investment.
Currently, there are more than 10,000 cryptocurrencies (https://coinmarketcap.com). However, the number of digital assets worldwide is a figure that changes frequently due to the continuous creation and elimination of projects in the market. Therefore, the market capitalization ranking can help the novice investor, indicating which projects have the most investment behind them and are thus more robust.
Lastly, one secret is also knowing when to part with some currencies to obtain a good return. As important as knowing when to buy at a good time is selling to make a profit, the timeframe depends on each individual. To achieve this, it is also important to know the historical evolution of the acquired cryptocurrencies; fortunately, there is a lot of content available to consolidate knowledge about these investments.
Financial education is essential for Argentinians seeking investment options to make informed decisions about what to do with their money, improving inclusion and the adoption of new technologies. Therefore, we aim to facilitate access and the use of cryptocurrencies, making them useful for more and more people.