Cryptocurrencies are an innovative digital asset that have seen monumental growth in recent times due to several contributing factors, including some governments giving them a chance as legal tender; however, they have also suffered setbacks that have called their viability into question, such as the most recent episode known as the "crypto winter."
Its value:
Despite this situation, more and more people have started to acquire cryptocurrencies to be able to invest in something "safe" and "reliable" both in the short and long term, despite the extreme levels of instability that it constantly suffers.
However, investing or buying in cryptocurrencies is easier than it seems. It must be remembered that these are virtual currencies, so they will be controlled in wallets or purses that share this peculiarity, since unlike regular money, they do not have a physical support.
There are several exchange platforms, among the most popular are Binance and Coinbase, which can be easily located from a search engine like Google. Once on their sites, you must select the registration option and choose the payment method to make purchases of the cryptocurrencies you want, since they offer several with different denominations on the market. It should not be forgotten that they are volatile, so it is important to always keep in mind their current value.
What is your status in Latin America?
Cryptocurrencies in Mexico
The Bank of Mexico (Banxico) has determined that none of the institutions participating in the national financial system may use or allow any type of transactions through this means of payment.
In Mexico, businessman Ricardo Salinas Pliego, one of the richest in the country, has shown interest in cryptocurrencies and has assured that several of his businesses will accept bitcoin in the future, including his bank; currently one of his most popular stores already does so.
Cryptocurrencies in Peru
The Central Reserve Bank of Peru (BCR) has made it clear that its mission is not to be the first or second central bank to regulate the use of cryptocurrencies, due to the instability that characterizes them. However, days ago the president of the (BCR) assured that the BCR was working on a project for its own digital currency.
Cryptocurrencies in Colombia
In the South American nation, there are more than 500 places where it is allowed to pay with cryptocurrencies. Colombia ranks 14th among 26 countries in cryptocurrency adoption, according to the Finder report.
Cryptocurrencies in Central America
The government of El Salvador has given its vote of confidence and on June 9, 2021, it became the first country to legalize bitcoin as legal currency. In addition, President Nayib Bukele announced his intention to create the first Bitcoin City in Conchagua and it would be financed through tokenized bonds backed by bitcoin.
To take into account!
To store your cryptocurrencies, you can choose between a hot wallet or a cold wallet:
Hot wallet: An online wallet that you can check from your computer or mobile
Cold wallet: A physical medium that digitally stores your investment, so you can access it without an internet connection.
It is important that you find a regulated and trusted broker so that your transactions are safe.
Investing in cryptocurrencies can be profitable, but it is also a business in which you need to be very careful. Cryptocurrencies are unregulated and unsupported digital currencies, so they constantly fluctuate due to supply and demand.
The BTC price has risen dramatically at the beginning of 2023.
Investing in cryptocurrencies has another advantageous aspect: their innovative nature. They represent a revolutionary advance in the fields of finance and technology, as they allow transactions to be made from anywhere in the world without the intervention of third-party intermediaries.
This makes them much more convenient than traditional money transfer methods.
What are the best cryptocurrencies to invest in?
There are different cryptocurrencies on the market, each with its own specific features and uses. If I had to name the four most prominent cryptocurrencies, I would say that:
Bitcoin (BTC) is the first and the largest in terms of market value. Created in 2009, it has become the number one digital currency and is by far the most sought after. It would be unwise to invest in cryptocurrencies without including Bitcoin.
Ethereum (ETH) is the second largest cryptocurrency in terms of market capitalization, behind Bitcoin. Created in 2015, it focuses on smart contracts and decentralized applications. Its growth has been extraordinary and it is the main currency used to trade Non-Fungible Tokens (NFTs).
Cardano (ADA) is not as well-known as the other two, but it is still intriguing. This cryptocurrency and decentralized blockchain network was created in 2015 by a blockchain research and development company, which includes the founders of Ethereum.
Dogecoin (DOGE) has gained notoriety in 2021 due to the endorsement of Elon Musk and other famous people investing in it. It was originally created as a joke by a programmer and a marketing member at Adobe in 2013, but has since been widely accepted.
