Cryptocurrency can be a confusing topic, but it doesn’t have to be. With the recent popularity of Bitcoin, many Filipino investors are wondering how to get in on the action. This article will explain how to invest in cryptocurrency in the Philippines, from Bitcoin to Ethereum.
Nowadays, investing in cryptocurrency in the Philippines is the talk of the town. As many individuals get interested in it, we made this guide to tell you the step-by-step procedure on how to invest in cryptocurrency in the Philippines.
What exactly is Cryptocurrency?
Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
Cryptocurrencies are often seen as an alternative investment option to more traditional asset classes such as stocks, bonds, and real estate. They can be used as a hedge against inflation and offer the potential for high returns. However, cryptocurrencies are also highly volatile and risky investments. Before investing in cryptocurrency, you should consider your investment objectives, risk tolerance, and liquidity needs carefully.
How to Invest in Cryptocurrency in the Philippines?
The trading process is relatively simple, and there are only five steps to follow when you want to know how to invest in cryptocurrency in the Philippines.
Step 1: Choose a cryptocurrency exchange
The first thing you need to do is to find a legitimate cryptocurrency exchange. There are many local exchanges available in the country, including the Philippine Digital Asset Exchange (PDAX) and Coins.ph, Juancash, Binance, and Coinbase, among others.
Step 2: Create and verify your account
Once you have chosen your cryptocurrency exchange, you need to sign up to open an account. Some platforms may ask you to verify your identity, which is an important step to meet federal regulatory requirements and prevent fraud.
In particular, you may be asked to submit a copy of your passport or driver’s license. You may even be required to upload a selfie to prove your physical appearance matches the submitted document.
Step 3: Create your cryptocurrency wallet
This step only applies to those who opened an account, but a wallet has not been created automatically.
Step 4: Deposit cash to start investing
You will need to deposit cash into your account to buy crypto. You can put funds in your account by linking your bank account or authorizing a wire transfer. You can also complete a payment with a credit or debit card. However, some exchanges will make you wait a few days before you can use the money you deposited to buy cryptocurrency.
Step 5: Place Your Cryptocurrency Order
The final step when looking at how to invest in cryptocurrency in the Philippines is to place your first cryptocurrency order. For instance, if you wish to purchase Bitcoin, you need to enter its ticker symbol, BTC, and how many coins you’d like to buy.
What Filipinos Need to Know Before Investing in Cryptocurrency in the Philippines
Investing in cryptocurrency is risky, but it can be profitable. Before investing, you should do your research and understand the risks involved. You should also create a wallet to store your coins in and understand how to buy and sell them.
Here are seven things Filipino beginners need to know before investing in cryptocurrency:
1. Invest Only What You Can Afford to Lose
You can’t invest in cryptocurrency without investing a lot of time and effort.
2. Cryptocurrency is Volatile
Investing in cryptocurrency is risky. The value of a currency can rise and fall rapidly.
3. Cryptocurrency is Not a Get-Rich-Quick Scheme
You can’t make a lot of money quickly with cryptocurrency investment.
4. Cryptocurrency is Not Always Legal
Investing in cryptocurrency may be illegal in some countries.
5. Cryptocurrency is Not Anonymous
You can’t hide your identity when buying or selling cryptocurrencies.
6. Cryptocurrency is Not 100% Safe
You can’t guarantee the safety of your cryptocurrency after you buy it.
7. Cryptocurrency is Not a Reliable Investment
Cryptocurrencies are not suitable for all investors.
The best piece of advice that we could provide for Filipinos is to full research these companies and study how to invest in cryptocurrency in the Philippines.
Why should Filipinos invest in cryptocurrency?
Cryptocurrency has several advantages over traditional fiat currency. First, cryptocurrency is not subject to inflationary pressure because a finite supply of coins can be mined. Second, cryptocurrency is portable and can be stored on a digital wallet or USB drive. Finally, cryptocurrency transactions are fast and secure due to the use of blockchain technology.
Despite these advantages, there are also risks associated with investing in cryptocurrency. The price of cryptocurrency is highly volatile and has been known to fluctuate rapidly. In addition, cryptocurrency exchanges are often hacked, which can lead to the loss of funds.
The best way for Filipinos to grow their money is to understand how to invest in cryptocurrency in the Philippines.
Common mistakes when investing in cryptocurrency
Investing in cryptocurrency can be a great way to earn a return on your investment, but there are some common mistakes that investors make. Here are a few of the most common mistakes:
Not Doing Your Research:
One of the most important things you can do when investing in any asset is to research it thoroughly. With cryptocurrency, this is especially important because the market is still relatively new and volatile. Ensure you understand how the currency works and what factors could affect its price before investing.
Investing Too Much Money:
Another common mistake is investing too much money in cryptocurrency. Just like with any other investment, you should only invest an amount that you are comfortable losing. The cryptocurrency market is known for its volatility, so it’s important only to invest an amount that won’t put your financial stability at risk if the market takes a turn for the worse.
The key is knowing how to invest in cryptocurrency in the Philippines to mitigate the risks.
Different types of cryptocurrency
There are currently over a dozen types of cryptocurrency available on the market, and that number is only expected to grow in the coming years. With so many options to choose from, it cannot be easy to know where to start when it comes to investing in cryptocurrency.
One of the most important things to do when considering a cryptocurrency investment is to research the different types of coins that are available. Each type of coin has its own unique features and benefits, and understanding these can help you make an informed decision about which coins are right for you.
Here are just a few of the different types of cryptocurrency that you may encounter:
1. Bitcoin: Bitcoin is the original cryptocurrency and still remains one of the most popular options on the market. Its popularity is thanks to its impressive track record and its high level of security.
2. Ethereum: Ethereum is a second-generation cryptocurrency that is rapidly gaining popularity thanks to the Ethereum platform. It is designed to be more flexible than Bitcoin and has additional features that make it stand out from other cryptocurrencies.
3. USD Coin: USD Coin is a stable coin that is designed to be pegged to the value of the US dollar. This means that it will always have a value that is close to $1.
4. Binance Coin: Binance Coin is a popular cryptocurrency created by the largest cryptocurrency exchange in the world. It can be used to pay for trading fees on the exchange and also offers a variety of other advantages.
5. Tether: Tether is a very popular cryptocurrency that has been around for several years now. While it’s not as well-known or popular as the coins listed above, it does have a strong community behind it.
6. Ripple XRP: Ripple XRP is a cryptocurrency designed for interbank payments and money transfers.
7. Cardano: ADA Cardano is a relatively new cryptocurrency project that uses blockchain technology to create smart contracts and decentralized applications.
8. Solana: Solana is a Proof of Work and Proof of Stake cryptocurrency that offers instant transactions and high scalability. It s being developed by the Solana team to address some of the shortcomings of blockchains like Bitcoin.
9. Dogecoin: DOGE Dogecoin is a cryptocurrency that was created in 2013 to make fun of the famous Doge meme. It was intended to be a joke, but it has since turned into a top cryptocurrency.
10. Polkdot POLK: Polkadot is a cryptocurrency developed to enable instant payments between friends. It uses the Proof of Work consensus algorithm and the Scrypt hashing algorithm.
11. Monero XMR: Monero is an anonymous, private cryptocurrency that was designed with the purpose of being untraceable while also allowing for ease of use.
12. Augur REP: Augur is a decentralized prediction market built on the Ethereum blockchain.
13. Dash DASH: Dash is a popular cryptocurrency that uses an anonymous, decentralized blockchain and runs using the Proof of Work algorithm.
14. Dentacoin DCN: Dentacoin is a blockchain project that focuses on improving dental care worldwide.
Knowing how to invest in cryptocurrency in the Philippines can go a long way.
What are the benefits of investing in cryptocurrency in the Philippines?
Investing in cryptocurrency can be a great way to generate additional income. Here are some of the benefits of investing in cryptocurrency:
1. Cryptocurrency is decentralized, meaning it is not subject to government regulation or control. This makes it a more volatile investment but also one that could potentially yield higher returns.
2. Cryptocurrency is still relatively new, which means there is potential for significant growth. Those who invest early could see their investment increase significantly over time.
3. Cryptocurrencies offer an alternative to traditional investments such as stocks and bonds. For investors looking to diversify their portfolios, investing in cryptocurrency can be a good option.
4. Cryptocurrency is a global investment, like any other investment in foreign exchange. This means that it has the potential to grow in value as the world economy grows.
Security concerns with cryptocurrency
When it comes to cryptocurrency, security is a major concern. After all, this is an asset that exists entirely online and is subject to hacking and other forms of cybercrime. If you’re thinking of investing in cryptocurrency in the Philippines, it’s important to take steps to protect your investment.
Here are a few things to keep in mind:
- Cryptocurrency exchanges are vulnerable to hacking. Be sure to choose a reputable exchange with strong security measures in place.
- Your cryptocurrency wallet is also at risk of being hacked. Again, choose a reputable wallet provider and take steps to secure your account (such as using two-factor authentication).
- Don’t store all of your cryptocurrency in one place. Spread it out across different exchanges and wallets to minimize your risk.
But if you know how to invest in cryptocurrency in the Philippines, you might mitigate the risks.
Conclusion: How to Invest in Cryptocurrency in the Philippines
A lot of Filipinos are interested in cryptocurrency but don’t know how to get started. The first step is to find a reputable exchange that allows you to buy and sell cryptocurrencies. Once you’ve found an exchange, you’ll need to create an account and verify your identity.
Once you’ve set up your account, you can start buying and selling cryptocurrencies. When choosing which coins to invest in, it’s important to do your research and consider factors such as the coin’s market capitalization, price history, and the team behind the project.
Cryptocurrency is a volatile market, so it’s important to be aware of the risks before investing any money.