Since its emergence in the financial markets, cryptocurrencies have been, without a doubt, the most popular and most talked about asset. There are many of its characteristics that make it attractive to investors, but the most striking is its volatility. If you are interested in knowing more about them, keep reading until the end of this article, since we are going to tell you how to invest in cryptocurrencies in Argentina.
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What are cryptocurrencies?
Before talking about how to buy cryptocurrencies in Argentina, it is important to define what they are, how they came about and how they work. A cryptocurrency is a digital asset (a token) issued by a company to raise financing and which in turn has various uses or applications. In the case of Bitcoin, the most popular digital currency, it originated in 2008 thanks to a person using the pseudonym Satoshi Nakamoto. The purpose was to create a digital currency that was not regulated by any Central Bank, financial institution or third party, but rather that the community of those who mine (create new Bitcoins) would decide or validate the transactions, regardless of amounts or origins. Thanks to its fundamental principle of decentralization, crypto, as it is also known, can be transferred from one person to another through the internet network without the need to have a bank or a financial institution as a guarantor or an intermediary. The only thing that is needed is the address of the wallet or wallet of the person to whom it is going to be transferred. Each cryptocurrency has a different address for each wallet). This decentralized system uses the blockchain, or “chain of blocks”, as a database for each operation. All the information of the transfers or operations of each user is stored there in a transparent and traceable way. The latter, however, is not so simple and takes time.
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Invest in cryptocurrencies
Due to its popularity, there are more and more exchanges and trading platforms that provide access to invest or buy cryptocurrencies, to the point that some have even partnered with companies such as VIsa or Mastercard, so that people can consume goods and pay. in crypto. The first step to invest in cryptocurrencies, once you have acquired the necessary knowledge, is to open an account in an exchange specialized in digital currencies, or a platform that offers this type of asset. The funds must be deposited there. Once they are available, it is time to choose the token that best suits your strategy or you are interested in investing in the long term for fundamentals and chances of success in the future. It is important to clarify that each asset has its own volatility, and may be ideal for risky or traditional investment profiles.
types of cryptocurrencies
There are different possibilities according to the development that interests you within the vast world of these assets: Web3, decentralization, decentralized finance (DeFi), NFT (non-fungible tokens), decentralized applications (DApps), blockchain, stable cryptocurrencies, etc. The most popular according to their market capitalization are Bitcoin (BTC), Ethereum (ETH), Tehter (USDT), Binance Coin (BNB), Ripple (XRP), Solana (SOL), and Cardano (ADA). They can also be divided into two large groups: the “stable” or “stablecoins” and the “alternatives” or “altcoins”. The main difference between them is that the first are those that replicate or follow the price of another good, such as the dollar, gold, and others, while the alternatives arise from the inspiration and creation of Bitcoin and fulfill different functions or pursue different goals within the ecosystem.
Source: Unsplash With this basic information you are ready to undertake your own market analysis, and then invest in cryptocurrencies in Argentina. Remember to set clear goals before making a choice and strategize!
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