Since its introduction, Bitcoin has been the subject of extensive scrutiny amid concerns that it is used for illegal activities. Nevertheless, many people have adopted the use of Bitcoin due to its potential benefits as an investment asset. This article will cover how to invest in cryptocurrency in the Philippines and why investing in Bitcoin may be a good idea for Filipinos.
Can You Legally Trade Bitcoin In The Philippines?
The Philippines has been one of the countries at the forefront of cryptocurrency adoption. The country has a population that is quite familiar with remittances, as 10% of Filipinos are working abroad. This has made them more open to the idea of using Bitcoin as a way to send money back home. In 2014, the Bangko Sentral ng Pilipinas (BSP) released a statement declaring that Bitcoin and other virtual currencies are not regulated and warned the public against using them. However, the BSP did not ban the use of cryptocurrencies and had since then recognized their potential as an investment asset.
Investing In Bitcoin: Why You Should Consider It
1. Bitcoin offers an alternative to traditional fiat currencies
One key reason to invest in Bitcoin is that it offers an alternative to traditional fiat currencies. Fiat currencies are subject to central bank manipulation and inflationary pressures, which can erode the value of your savings over time. On the other hand, Bitcoin is not subject to these factors since it is not a fiat currency. This means that your investment in Bitcoin is less likely to be affected by inflation and central bank manipulation.
2. Bitcoin is a borderless and global currency
Another key reason to invest in Bitcoin is that it is a borderless and global currency. This means that you can send and receive Bitcoin without having to worry about exchange rates or cross-border fees. Additionally, Bitcoin can be used to make purchases anywhere in the world where merchants accept it as a form of payment. This makes Bitcoin a convenient investment asset for Filipinos who have family or friends living abroad.
3. Bitcoin is a scarce asset
Bitcoin's supply will never exceed 21 million units, and more than 18 million of these have already been mined. This means that the supply of Bitcoin is limited, which could lead to an increase in its value over time.
4. Bitcoin is a decentralized asset
As a decentralized asset, Bitcoin is not subject to government or central bank control. This makes Bitcoin an attractive investment asset for those looking for an alternative to traditional fiat currencies.
5. Bitcoin offers potential for capital gains
Lastly, one of the key reasons to invest in Bitcoin is that it offers potential for capital gains. The price of Bitcoin has been on a general upward trend since it was first created in 2009. As more people adopt Bitcoin and demand for it increases, the price is likely to continue to rise. This could provide investors with the potential to earn capital gains on their investments. These are just some of the key reasons why investing in Bitcoin may be a good idea for Filipinos. Risks are inherent in investing, but the potential rewards of investing in Bitcoin make it an attractive option for many people.
Ways To Invest Bitcoin In The Philippines
There are a few ways to start investing in Bitcoin in the Philippines. The most popular way is to use a cryptocurrency exchange. You can buy and sell Bitcoin on a number of exchanges in the country. Another way to invest in Bitcoin is to use a peer-to-peer (P2P) lending platform. These platforms match borrowers and lenders who are willing to transact in Bitcoin. This can be a good option for those who want to earn interest in their investment. Lastly, you can also mine Bitcoin yourself. However, this requires significant investment in hardware and electricity and is only recommended for those with experience in mining cryptocurrencies. These are just some of the options available for those looking to invest in Bitcoin in the Philippines. With the growing popularity of Bitcoin, more and more options are likely to become available in the future.
How To Start Investing Bitcoin In The Philippines | Step-by-Step
1. Choose a cryptocurrency exchange
Investing in Bitcoin begins with choosing a cryptocurrency exchange. Some popular exchanges include Binance, Coinbase, and Kraken.
2. Create an account on the exchange
When you have chosen an exchange, you will need to create an account with the platform. This usually involves providing your personal details and verifying your identity.
3. Deposit funds into your account
Afterward, you must deposit money into your account. This can be done using a bank transfer or a credit/debit card.
4. Buy Bitcoin
You will be able to buy Bitcoin once you have deposited funds into your account. To do this, you will need to select the amount of Bitcoin you want to buy and place an order.
5. Withdraw your Bitcoin
Once your order has been filled, you will be able to withdraw your Bitcoin to a personal wallet. This is recommended for security purposes. These are the basic steps involved in investing in Bitcoin in the Philippines. However, it is important to note that there are risks involved in any investment. Before investing, you should always research the asset thoroughly and consult with a financial advisor if necessary.
What Are The Payment Methods For Investing In Bitcoin In The Philippines?
The most popular payment method for investing in Bitcoin in the Philippines is a bank transfer. This can be done using online banking or going to a physical bank branch. Another popular payment method is using digital wallets such as Paymaya, Gcash, and Coins.ph. With these wallets, you can easily buy from P2P sellers or exchange them on the platform itself. Note that available payment methods will depend on the platform or seller you will use. Some might only accept one payment method, while others offer a variety of options. Choose the platform or seller that offers a payment method that is most convenient for you.
Where To Invest Bitcoin In The Philippines
- Spot Trading: Binance offers both basic and advanced spot trading platforms. The basic platform is designed for beginners and is very user-friendly. The advanced platform is designed for more experienced traders and has more features and tools.
- Margin Trading: Binance offers margin trading with up to 3x leverage. As a result, you may trade with more money than you have in your account. However, it also means that your losses can be amplified, so you need to be careful.
- Futures Trading: Binance offers futures trading with up to 125x leverage. However, this high-risk, high-reward form of trading may not be suitable for everyone.
- Trading Fee: .1% Spot trading
- Minimum Deposit: $10
Founded in 2007, eToro is a trading platform that caters to traders of all levels of expertise. It is one of the most popular social trading platforms, with over 10 million users worldwide. The exchange encourages users to seek advice from one another and provides the CopyTrader service, allowing users to imitate top investors' trades. In the Philippines, you can trade the following cryptocurrencies on eToro: Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, Ethereum Classic, Dash, Stellar, NEO, and EOS. eToro also offers non-cryptocurrency CFD markets such as equities, commodities, and foreign currency. To top it off, eToro offers low fees. Opening an account with eToro is quick and easy. Just provide your e-mail address and create a password. Once you have registered, you will need to verify your account by providing some personal information such as your full name, date of birth, and national ID. After you have registered and verified your account, you can start trading. To do this, you will need to deposit money into your account. eToro offers a variety of deposit methods, including credit/debit cards, bank transfers, Paypal, and Skrill. Key Features:
- CopyTrader: eToro's CopyTrader service allows you to copy the trades of top investors. This is a great way to learn from more experienced traders and make money yourself.
- Mobile App: eToro has a mobile app available for both iOS and Android devices. The app is well designed and easy to use.
- Low Fees: eToro charges relatively low fees for both trading and deposits/withdrawals.
- Variety of Markets: In addition to cryptocurrency, eToro offers a variety of other markets such as forex, stocks, commodities, and more.
- Trading Fee: 0.75% spread
- Minimum Deposit: $50
Coins.ph is a Philippine-based cryptocurrency exchange that was founded in 2014. The exchange is headquartered in Manila and is the first virtual currency provider in the Philippines that BSP licensed and regulated. Their services allow you to buy, sell, and store cryptocurrencies such as Bitcoin, Ethereum, XRP, Bitcoin Cash, and more. Coins.ph is one of the most popular cryptocurrency exchanges in the Philippines, with over 5 million users. It offers a mobile app available for both iOS and Android devices. In addition, Coins.ph has low fees and supports a variety of payment methods, including credit/debit card, bank transfer, and 7-Eleven cash deposit. All Coins.ph accounts come with their Bitcoin wallet, which you can use to store, send, and receive Bitcoin. Key Features:
- Mobile App: Coins.ph has a mobile app that is available for both iOS and Android devices.
- Bills Payment: Coins.ph allows you to pay your bills using Bitcoin. This is a great way to use Bitcoin for everyday purchases.
- Low Fees: Coins.ph charges relatively low fees for both trading and deposits/withdrawals.
- Variety of Payment Methods: Coins.ph supports a variety of payment methods, including credit/debit card, bank transfer, 7-Eleven, Cebuana Luhiller, and other cash deposit centers.
- Trading Fee: None
- Minimum Deposit: ₱100 with ₱2,000 as a maintaining balance
Coinbase is ranked second as the best cryptocurrency exchange for novices. The trading platform includes over 100 crypto assets and offers lightning-fast transactions, trading incentives, and a user-friendly design. However, trading commissions are higher than the industry average. Professionals may use Coinbase Pro, which has a cheaper cost structure and enhanced capabilities, including stop-loss orders, advanced charting, and indicators. Users will not have the option of trading futures or margin accounts. For crypto beginners in the Philippines, this is one of the top cryptocurrency exchanges. The platform is devoid of jargon, and both the main site and the free mobile app are simple to navigate. However, when you buy cryptocurrencies, you must pay a normal fee of 1.4%, which is computed automatically when you place an order. Coinbase offers two options for storing your Bitcoins. The first is a self-custody wallet, which implies you're in charge of your assets and private key's security. In contrast, the non-custodial wallet option relieves you from managing your private keys to access your portfolio of assets. Key Features:
- User-Friendly Interface: Coinbase has a user-friendly interface that is perfect for novices.
- Wide Selection of Cryptocurrencies: Coinbase offers a wide selection of cryptocurrencies, including Bitcoin, Ethereum, XRP, Litecoin, and more.
- Mobile App: Coinbase has a mobile app available for both iOS and Android devices.
- Security: Coinbase is one of the most secure exchanges in operation today. They offer two-factor authentication as well as a host of other security features.
- Trading Fee: 0.5% spread
- Minimum Deposit: $2
The Philippine Digital Asset Exchange, or PDAX, is one of the most well-known cryptocurrency exchanges in the Philippines. The BSP regulates this cryptocurrency platform, which was founded in 2017. As a result, the process of buying and trading cryptocurrencies like BTC, XRP, LTE, and others is secure on the site. The minimum trading quantity varies depending on the crypto pair. For example, BTC/PHP requires a minimum of 0.00002 units, but ETH/PHP requires 0.0005. If you require further information, there is a list on the platform. The fact that the PDAX exchange was created in the Philippines is one of its finest features. This eliminates the need to exchange cash or pay conversion fees in order to purchase crypto assets in Philippine Peso. A deposit of $300 is required. GCash, PayMaya, GrabPay, and Coins.ph are among the accepted e-wallets. Over-the-counter cash and internet banking are two more ways to fill your account. More than 23,000 Filipino cryptocurrency dealers use the PDAX exchange. You can join its Telegram channel or Facebook Group to engage with other traders who share your interests. This allows you to stay up to date on the newest cryptocurrency news and, in certain circumstances, learn from seasoned traders. You may fund your account and get started when the verification procedure is complete. You may also buy and trade cryptocurrencies on the move using the PDAX mobile app, but you must first validate your account on the main platform. Key Features:
- BSP-Regulated: PDAX is regulated by the BSP, which adds an extra layer of security.
- Crypto-to-Fiat Exchange: This exchange allows you to trade cryptocurrencies for Philippine Pesos (PHP).
- Low Minimum Deposit: You can start trading with as little as $50.
- Mobile App Available: The PDAX mobile app allows you to trade cryptocurrencies on the go.
- Trading Volume: PDAX has a large community of over 23,000 Filipino cryptocurrency traders.
- Trading Fee: 0.5% Market Order
- Minimum Deposit: ₱300
Tips On Choosing The Right Bitcoin Investment Platform
There are many Bitcoin investment platforms to choose from. These platforms offer different features, fees, and investment options. So, it can be difficult to decide which platform is right for you. Here are a few things to consider when choosing a Bitcoin investment platform:
- Fees: When choosing a Bitcoin investment platform, make sure to compare the fees charged by different platforms. Some platforms charge higher fees than others but offer more advanced features (and vice versa). Choose the exchange that strikes a good balance between their fees and functionalities.
- Security: The security of your investment is of utmost importance. Pick a platform that offers two-factor authentication and other security features.
- User-Friendliness: It would be best to choose a platform with a user-friendly interface that is easy to use, especially if you’re just a beginner.
- Mobile App: If you want to be able to trade cryptocurrencies on the go, make sure to choose a platform that offers a mobile app.
- Selection of Cryptocurrencies: When choosing a Bitcoin investment platform, check the selection of cryptocurrencies offered. Some exchanges support hundreds of coins, while others offer only around 20, though these are deemed the essential ones.
Investing in Bitcoin in the Philippines is a legal and viable option for those looking to invest in an emerging asset class. The country's most powerful financial regulator, the BSP, has created a robust regulatory framework for digital assets. There are a number of exchanges that offer access to a variety of cryptocurrencies. When choosing a Bitcoin investment platform, make sure to compare the fees, security features, and selection of cryptocurrencies offered by different platforms.
Investing In Bitcoin In The Philippines FAQs
1. Which Bitcoin exchange is best for me?
This depends on what your goals are and what features you value most. If you're a beginner, we recommend Coinbase because of its user-friendly interface. For more experienced traders, we recommend Binance.
2. Can You Legally Invest in Bitcoin in The Philippines?
It is legal to trade cryptocurrency in the Philippines. The Anti-Money Laundering Law and the BSP guidelines govern digital assets. Exchanges of virtual coins and fiat cash are among the BSP's license criteria. All transactions must adhere to BSP regulations.
- Is Investing In Bitcoin Regulated?
The Philippines Central Bank (BSP) is the country's most powerful financial regulator. The BSP has created a robust anti-money laundering infrastructure that adheres to FATF requirements. Cryptocurrency exchanges are required to follow BSP guidelines and acquire authorization. According to the official authorization, exchanges must follow the Know Your Customer (KYC) standards and report questionable activities to the authorities.
4. What Are The Risks Of Investing In Bitcoin?
The volatile nature of cryptocurrencies is one of the biggest risks associated with investing in digital assets. The prices of BTC, XRP, and other virtual coins can rise and fall rapidly. You could lose a significant amount of money if you're not careful. Another risk to consider is the potential for hacks and scams. Cryptocurrency exchanges have been hacked in the past, so it's important to choose a reputable platform. For instance, PDAX uses state-of-the-art security measures to protect your account.
5. What Are The Benefits Of Investing In Bitcoin?
Cryptocurrencies offer a number of advantages, including 24/7 trading, global reach, and anonymity. You can also take advantage of price swings to make a profit. If you're looking for an opportunity to invest in an emerging asset class, digital coins could be a good option.