Argentina is among the countries with the largest number of cryptocurrency users, even surpassing European powers. With almost 10 million cryptocurrency users in the country, they are undoubtedly one of the preferred ways to protect and multiply savings.
However, saving in crypto is not for everyone. In addition to understanding and analyzing the variations in the Ethereum and Bitcoin prices, it is essential to have a deep knowledge of the market, have an investment strategy, and analyze the risk you are willing to assume.
Although digital cryptocurrencies are more volatile than other investments, more and more people invest in them. The amount of knowledge online, the different apps, and Easy-to-use investments brought cryptos closer to a much broader audience.
For Argentines, purchasing dollars, fixed terms, and investing in property were the most common forms of savings. But today they are losing followers to the stablecoins, which offer a great refuge for savings: they allow us to protect our money from inflation and generate profits.
Saving in cryptocurrencies is the trend in the country
Every 10 transactions carried out in Latin American cryptocurrency apps, 4 are made in Argentina. This statistic allows us to see the great popularity of crypto assets in the country, an alternative to more traditional savings methods.
The barriers in the purchase of foreign currency, the depreciation of the peso and the devaluation of traditional currencies are the main causes of the great crypto furor in Argentina. Despite being a higher risk operation, cryptocurrencies offer an alternative refuge for Argentines’ savings.
To escape the country’s exchange restrictions in recent years, Argentines resorted to the stablecoins, cryptocurrencies that are associated with the value of a particular asset such as the dollar, the euro, gold, among others. In recent years, almost 80% of cryptocurrency operations in the country correspond to these currencies.
With the stablecoins, the main objective is protect savings from inflation. Being more stable, they also represent a lower risk investment that many more people are willing to take on. And they are also the currencies most used to make payments, in the operations that currently accept them.
And although the stablecoins They are the most used by Argentines to save safely, the favorites Bitcoin (BTC) y Ethereum (ETH) They don’t stop gaining followers. For both small and large investors, these 2 currencies are the most used, although they do not represent the same risk or the same profits.
Despite its volatility, Bitcoin is increasingly stable and presents lower risk, making it attractive for those who want to take care of their savings and also have a return. But for those looking to multiply them, Etherum is a great option as it offers Higher profits, but with more risk.
In a complex panorama like that of Argentina, investments in digital assets became an alternative to the barriers in other investment methods. Due to the limits on the purchase of dollars, the low interest rates for fixed terms and the impossibility of accessing the purchase of properties, cryptocurrencies are proposed as an alternative solution and with possibilities to multiply savings exponentially.
Rapid growth and lack of regulation
As in other countries, there is still no clear regulation of cryptocurrencies in Argentina. Many believe that clear regulations can increase trust in the crypto world and multiply the number of users. Although there are regulations on crypto profits and mining, the main objective of promoting new laws is to give more protection to users.
From the NGO Bitcoin Argentina they are working on a bill to give transparency to this market that continues to expand. In their draft they classify the platforms as centralized and decentralized to regulate them differently.
And the adoption and use of cryptocurrencies in the daily lives of Argentines is also something that will be seen more and more. A rental contract has even been signed in the country with the price set in Tether (USDT), one of the stablecoins best known whose value is tied to the US dollar.
But the growth of the crypto market has a big problem: the amount of crypto hackers and cyber attacks receiving. In Argentina there is low awareness about Informatic security, something that must change to ensure the success of this model.
As these are digital assets, there are greater risks and a clear regulatory framework is needed to also be able to detect and punish threats. With collaboration between governments and companies, it is possible to achieve greater security in the crypto world for all users.
