The global cryptocurrency adoption goes hand in hand with use cases. Sometimes a certain niche can make a huge profit using crypto assets at a competitive exchange rate. Recently, the newsroom had the opportunity to interview Ulises Alzogaray, director of Bitwage Argentina, platform used by many freelancers who export services abroad to collect in cryptocurrencies from Argentina. This platform makes it easier for professionals in the region to charge for their services and thus be able to offer their expertise to clients from all over the world.
Increase in P2P operations
In recent years, more has been heard about bitcoin and cryptocurrencies worldwide. In Latin America, adoption is increasing as developments are made that facilitate use. The number of P2P operations, that is, peer-to-peer or between users, increases exponentially with the growth of users in the international community, which is beginning to echo the benefits associated with the use of cryptocurrencies. In some blockchains the commissions are much lower than the traditional banking system, especially when it comes to international money transfers. This makes them very competitive options for remittances.
“Obviously there is a growth in crypto P2P operations in Argentina and from my perspective it has to do with the search of the Argentine who is in crypto to get out of the centralized paradigm”, declared Ulises Alzogaray to the newsroom.
Advantages of P2P operations over buying and selling with other types of options
For its part, there are some advantages that arise from the purchase and sale of crypto assets between users, such as the ease of means of payment or anonymity, since private data is kept in the process. “The advantages lie in the flexibility, since being an arrangement between individuals, this allows a greater range of means of payment. In anonymity and privacy, since it allows us to have a lower profile than with more traditional or centralized options, and another advantage is that the market determines prices, which allows us to get out of exchange distortions related to regulations. governmentUlysses added.
However, also there are P2P platforms that perform KYCor know your customernamely, a process by which each user is identified of the platform. Regarding the KYC processes, Ulises stated: “I think it’s a good step to start and find out how the P2P market works, obviously at the cost of sacrificing our privacy. Anyway, I think it is a very good option for those who are just starting to trade crypto.”
By compliance, that is, according to current legislation in some countries, it is necessary to identify the users of financial products when there is fiat money in between. In some cases, there is the possibility of remaining anonymous under certain limitations or using a completely decentralized P2P network, but in any case, these requirements should be considered before starting to use a platform to exchange cryptocurrencies. It is recommended to carefully read the terms of use as well as the comments of users of the platforms since they are usually revealing about their experiences.
How to Get Started with P2P Transactions
Before starting to transact with crypto assets, it is best to learn about the subject, since there are many concepts that may be new to new users, such as wallets, public and private keys, etc. Finally, Ulises shared some recommendations on the first steps we can take if we want to start using P2P buying and selling:
“Get informed, get informed and get informed. In the end, the only way to defend yourself against scams is to be educated on the subject. Nowadays there is a huge amount of easily accessible information between youtube videos, articles, subreddits, and others, which offer a good starting point to start operating in the P2P market safely. The idea is compare information and look for reliable sources.”
Ultimately, adoption is driven by particular situations such as the escape from censorship in Canada or the high rates of the centralized system in Argentina. This added utility of blockchain networks is introducing the use of cryptocurrencies, especially in countries where the devaluation of local fiat currencies is relevant and/or there is a large number of unbanked people since to enter the network no special requirement is necessary. In this sense, cryptocurrencies present interesting alternatives in parallel to the traditional financial system but must be used responsibly and knowingly to avoid losing access to funds.
It may interest you:
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.