The cryptocurrency market has been seeing rapid growth in the past few years, and it is only expected to grow with countries such as El Salvador, which recently accepted cryptocurrencies like Bitcoin as legal tender.
When it comes to financial innovations and integrations, the Philippine government is adaptable. In fact, In 2019, the Security and Exchange Commission, one of the financial regulatory bodies, has already started writing proposed rules on Digital Asset Exchange.
Do you want to buy Bitcoin, Ethereum, and other crypto-assets but are unsure how? Do you worry that your money will be lost through fraud or poor decisions? If that’s the case, keep reading. In this post, you will learn three ways on how to buy safely and a quick walkthrough of cryptocurrencies.
What are cryptocurrencies, and why should I care about them?
Cryptocurrencies are a type of virtual money that exists solely on the internet and can be used to buy and sell anything anywhere in the world. They’re also decentralized, which means they’re not governed by any central authority such as the central bank.
In short, cryptocurrency is a digital currency that uses cryptography to secure and verify transactions. It’s also more difficult for anyone to get their hands on your money because encryption technology protects it.
As a result, it’s nearly impossible to counterfeit or duplicate it (at least not yet). It’s also open and verifiable. For example, if a new Bitcoin is generated or transferred, everyone who uses Bitcoin will be aware of it and able to confirm it. However, you do have total control over your money and how you would like to keep it if you own Bitcoin and other cryptocurrencies.
You may keep your Bitcoin for the long term and wait for its value to rise. In 2013, 1 bitcoin was worth $100 and it is now worth more than $60,000. Imagine how much money you’d have by now if you bought a few coins back then.
What cryptocurrencies are available in the Philippines?
Here is a quick guide to some of the cryptocurrencies that you can buy.
- Bitcoin (BTC) – This is the first and most well-known blockchain cryptocurrency, which was created in 2009. It uses a proof-of-work algorithm, which necessitates a lot of work. Because its scarcity motivates individuals to invest in it, it has dubbed itself the “gold standard” of cryptocurrencies.
- Ethereum (ETH) – This cryptocurrency, which was founded in 2015, also uses proof of work. The Ethereum network has a limit of 18 million coins. It’s one of the most well-known cryptocurrencies because its system allows you to turn simple transactions into sophisticated smart contracts.
- Ripple (XRP) – Launched in 2012, Ripple is a real-time gross settlement system that uses a consensus ledger. It’s the third-largest cryptocurrency and it has a limit of 100 billion coins. It also allows for transactions to be completed within seconds.
- Bitcoin Cash (BCH) – A hard fork of Bitcoin, this cryptocurrency was created in 2017 with one goal: to increase the size of blocks. It currently has a limit of 21 million coins and uses proof-of-work. It is also fast with transactions usually taking between 10 to 20 minutes to process.
- EOS (EOS) – Launched in 2017, this cryptocurrency allows companies and developers to build and deploy decentralized applications. It uses delegated proof-of-stake as its consensus mechanism and has a limit of 1 billion coins.
- Litecoin (LTC) – Launched in 2011, this cryptocurrency is similar to bitcoin but was created with some differences such as faster block generation times(2.5 minutes), lower block sizes (~1MB), and a different hashing algorithm.
- NEO (NEO) – Launched in 2014, this cryptocurrency is the first decentralized, open-source blockchain platform that uses digital identity to digitize assets and leverages smart contracts for automation. It also has a maximum supply of 100 million coins.
- Stellar Lumens (XLM) – Launched in 2014, Stellar Lumens runs the Stellar Consensus Protocol that uses a Byzantine agreement model. It has a limit of 100 billion coins and transactions usually take 3 to 5 seconds to complete.
How to Buy Bitcoin and other cryptocurrencies using Coins.PH
Here’s a simple guide on how to buy Bitcoin and other crypto assets on Coins.PH, a mobile wallet that also supports bills payments.
- Download Coins.PH mobile app on Google Play Store for Android devices or App Store for iPhones (search for “Coins.PH” in the app store)
- Create an account and verify your mobile number.
- Deposit cash to Coins.PH via 7-Eleven, SMART, or GCASH by going to Menu > Balance > Cash In
- Select the method you want to use, whether it’s via e-wallet, local bank transfer, remittance center, kiosk payments, or international options.
- Once you deposit cash on your Coins.PH wallet, click the Crypto > Convert and choose the digital currency you want to buy.
Start trading cryptocurrencies or hold them for the long term. Don’t forget to check out these mobile wallets we have reviewed so far.
- Abra Wallet MoneySmart Review 2020
- Coins.ph MoneySmart Philippines Review 2020
- CLiQQ eWallet MoneySmart Review 2020
How to Buy Bitcoin and other cryptocurrencies using cryptocurrency exchange like PDAX
Another way to buy Bitcoin and other cryptocurrencies is through an exchange like PDAX. It’s a local exchange that lets you buy and sell coins for as low as P200. One of the advantages of using this method is that you can cash-in in different options such as e-wallets, local banks, and remittance centers.
- Go to https://pdax.ph/register and create an account on the exchange website. This is to help you buy Bitcoins through your bank account or mobile wallets like Gcash, Paymaya, or GrabPay.
- Once you have registered, click Funds on the menu bar and then choose the currency you want to have a Payment In. In this case, deposit Philippine Pesos first in your account.
- Click the ‘Cash In’ and a new window will pop out. Choose the method you want to cash in, whether it’s a local bank transfer, mobile wallet, or remittance center.
Keep in mind the convenience fees and other charges that PDAX will charge. If you have a maximum cash-in limit of P50,000 the fees should be included already.
- After successfully sending some funds to PDAX via your preferred method, you can log in to your account and click the ‘Trade’ section. From there, choose which coins you would like to purchase.
How to buy Bitcoin and other cryptocurrencies using Peer-to-Peer P2P Transaction
When you buy Bitcoin in a P2P setup, it usually means that you don’t have to go through a broker or exchange who would handle your purchase, but that you can just directly transfer money to another person for them to set up an account for you and handle the purchase for you.
When buying Bitcoin in a peer to peer setup, the steps are as follows:
- Find someone who is willing to sell the amount of your objective requirement (for example 1 bitcoin). The recommended place to look for would be Facebook groups or Reddit subreddits like r/bitcoin and r/cryptocurrency.
- You should also check how much they are selling it for and if the price is reasonable or not so you should be able to negotiate.
- If you have a seller, negotiate on how to proceed with the payment method. The most common method of a transaction would be through a bank account transfer since it’s more convenient, but some people do prefer other alternatives like cash through Money Transfer (Cebuana Lhuillier, Palawan, Western Union) or any other method that works for both parties.
- After you have set up the payment method and how it will be transferred, agree to meet up with each other (person selling) at a public location like in an event or mall where you can both get to know each other and make sure the transaction is fair. In case it does go wrong, there are authorities in every location that will be able to help resolve the situation.
There’s nothing left for you to do after meeting up with your counterparty and deciding on the amount and how it should be transferred and all you have to do is wait for them to transfer the money to your account.
There are many reasons why you should be interested in cryptocurrency. We’ve touched on some of the most common ones, but there are plenty more that you can learn in the future.
You can find out about cryptocurrencies like Bitcoin and Ethereum by following our blog MoneySmart Philippines.
What other topics would you like to know more about? Let us know in the comments section below!