Given the greater availability of time at home, users used platforms to make their funds yield and get an extra income
“Bitcoin is volatility, up but also down. Welcome to the world of cryptocurrencies“. The phrase, repeated on social networks, was launched by Experienced users of digital currencies as an irony for novice investors alarmed at a crypto market that does not stop generating uncertainty.
Among them, there are thousands of savers who sought refuge in these assets in the face of restrictions to access foreign currency. In fact, there are more than two million accounts open in the country to operate with these 4.0 instruments.
But the pandemic, in addition to allowing Argentines to study the operation of cryptocurrencies as a safeguard against the weakness of the peso, it also opened a Work out, 100% online, without bosses or schedules.
Thus, many of them gradually became “digital money changers“, offering different assets from your computer or phone to compatriots and even people from all over the planet, generating dollar income. And it is a trend that is increasing.
This new “rummage” offered by cryptocurrencies is possible thanks to the person-to-person (P2P) platforms that work in the style of Mercado Libre connecting buyers and sellers. Among them, stand out Airtm, Binance and Paxful.
These applications allow exchange bank account funds, cryptocurrency wallets, payment platforms (Mercado Pago or PayPal, for example) and gift cards (like those of Amazon), among other digital balances.
For example, for the purchase of 1,000 pesos in cryptocurrencies on these platforms, The steps to follow are those:
- A user places an order to buy
- Pay the market price (bid-ask)
- Indicate how you will pay: bank or fintech transfer, PayPal balance, other cryptocurrencies, collection networks (such as EasyPay), among other options
- Another user (broker) accepts that order and sends the cryptocurrencies
- They will be “frozen” on the platform as a guarantee until the transfer is completed (escrow)
- Once the buyer makes the payment, the virtual currencies are released
Maximiliano Hinz, Latam Operations Director of Binance, points to iProUP: “Once a person Create an account, you need to look for the buy cryptocurrency button or go to p2p.binance.com and choose the currency you want to purchase to complete the operation“.
Gastón Levar, Argentine representative of Airtm, indicates to iProUP that “the Argentines discovered during the pandemic that they could convert your pesos into dollar digital, exchange them for cryptocurrencies and even take them to trading platforms “.
Indeed, P2P exchange platforms allow to do what is known as arbitration: buy a digital asset in a country where it trades low and sell it in another market in which the price is higher.
According to Levar, “many started earning between $ 500 and $ 1,000 per month by exchanging these assets “with people from all over the world. Renata Rodrigues, Global Marketing Manager of Paxful, confirm to iProUP that in the last year registered in the country a “annual growth of active users of more than 174%“.
“It can be started with 100 pesos. After creating an account and verifying identity, they can search for an offer or create your own with the payment methods they want, “remarks the executive.
Users can earn by trading cryptocurrencies, digital dollars, stocks, and platform balances
In the same vein, Juan Pablo Thieriot, CEO of Uphold, confirm that they count “with a large number of Argentine users, whose trading volume increases when there are big fluctuations in the market, both in the rise and fall “.
Indeed, the methodology grew strongly thanks to its low entry barriers: no technical analysis expert required (it is enough to be attentive to the price fluctuations of the crypto market) and the minimum elements to boot are the following:
- Bank account. If you also have an international, you can get more opportunities
- Various payment methods: Mercado Pago, PayPal, Wise, etc.
- A user on the main P2P platforms
- Time (about four hours a day is recommended) to detect opportunities and make sales
And obviously, it is necessary to have funds in those services, which could be located between 100 and 200 dollars to start trading, although it is possible to do it with less.
In this sense, Iván Marchena, from Arum Trade, affirms to iProUP that “the platform allows trading from $ 30. But the initial capital will depend on the objective that the user considers “.
With respect to cost effectiveness, states that “it will depend a lot on the assets with which the user will operate and the moment he enters to the market “, since if” it enters one of volatility it can make a difference “.
Hinz says that it is difficult to estimate monthly earnings, “since there are many variables, such as available funds, limitations to operate or movements in prices.”
“There are weeks in which the market demands a lot and others in which it is calm. But there are many people in the world who live from this“, completes the executive of Binance.
When opening an account on these platforms, users must complete your personal data and, in some cases, attach identity document or other verifications to prove who they are.
This process, known as KyC (know your customer) is required by the authorities to avoid fraud, money laundering or terrorist financing. “Users present identity documents and proof of address, as well as card details. Only so can we verify that the person making the deposit or the retirement is the holder “, indicates Marchena.
Hinz adds that with this mechanism they can “know who are the two parties that are operating”, and adds: “As cryptocurrencies are within our platform, Binance may act as a mediator to release the funds to whom it may concern and prevent someone from taking something without paying. “
In addition to these verifications, Paxful offers programs for those engaged in the sale of digital assets, as a way to give more visibility to the most trusted brokers.
“The Trader Program has two levels that offer exclusive advantages and benefits to those who meet the requirements, “says Rodrigues. In this case, the incentives consist of a badge on the profile, access to outstanding offers, greater means of payment and collection, among others.
Users can trade cryptocurrencies and digital balances 24 hours a day
Hinz remarks that, in Binance “those who sell on the platform and are merchants validated have reputation and that allows them to be more reliable. They also offer the user a safe and above all comfortable experience. ”
In the case of Airtm, the novice user has access to 30% of the 500 available payment methods. The limits of operations are also “capped”.
After 15 successful transactions and an analysis of the firm, you can become a “cashier” or “freebroker” and operate with higher amounts and collection methodsIn addition, users themselves rate their counterparts with stars.
“The Argentine achieves personal growth with Airtm: knows when the greenback will be higher and sells AirUSD (the company’s digital dollar), which is the most frequent transaction. Then the users bet on Bitcoin and Ethereum, among other cryptocurrencies, “reveals Levar.
For its part, the directive of Paxful assures that the sale of Bitcoin and pesos is the most popular operation, followed by exchanging that cryptocurrency for dollars and exchanging it for stablecoins that trade at par with the US currency.