Looking to dip your toes on cryptocurrency trading? You’ll need to start somewhere! Compare the best cryptocurrency trading platforms currently available in the Philippines and see which one fits your specific investment needs.
Platform | Minimum Balance | Trading Fee | Withdrawal Fee | BSP Regulated? | Transfer Methods | Mobile App Rating |
---|---|---|---|---|---|---|
₱100 | Free | Starts at ₱10 | Yes | Online Banking | Play Store: 4.1 Stars | |
₱200 | Up to 0.5% | Starts at ₱10 | Yes | Online Banking | Play Store: 4.0 Stars | |
$2 | 2% | 1% of the amount | No | Online Banking | Play Store: 4.3 Stars | |
₱1,000 | Up to 4.5% | Depends on the coin | No | Online Banking | Play Store: 4.5 Stars | |
$200 | Up to 5% | $5 | No | Online Banking | Play Store: 4.1 Stars |
A cryptocurrency trading platform, also known as a cryptocurrency exchange, allows you to buy, sell, and trade cryptocurrencies through an app or web-based tool. Just like stock trading platforms, cryptocurrency trading platforms allow you to make trading decisions without assistance from a broker.
Cryptocurrency is digital money—it’s virtual and has no physical form. Don’t confuse it with the money in your e-wallet or online banking account, as it is tied to real physical coins or bills.
Because cryptocurrency is purely digital, this means that you can store it online and even in small, specially designed hardware. And since it doesn’t require a bank or any middleman, you can easily send your digital money to anyone, anytime, anywhere.
Cryptocurrencies work through blockchain technology. Blockchain is a special kind of database, and it differs from traditional databases when it comes to storing data. Traditional databases are centralized, meaning only select people can access them. Blockchain, on the other hand, allows all participants to view the records and all the changes that happen in the database.
To understand how blockchain works in the context of cryptocurrency, let’s take a look at this example. You buy a laptop from a shop using a credit or debit card. The bank then subtracts the money from your account and then updates your records. Only you and the bank have the access to your transaction records.
But if you buy a laptop from the shop using cryptocurrency, here is what will happen. Your transaction data will be stored in a block, which is technically a list of other transactions made by other people. The block where your transaction is listed will then be chained to previous blocks.
With this setup, you can think of blockchain as a global ledger that records all the transactions of the people who are using the same cryptocurrency. This ledger also makes sure that all the transactions that go to it, from past to present and to future, are all valid.
Cryptocurrency is digital money. Bitcoin is a form of cryptocurrency. Blockchain, on the other hand, is the technology used to make cryptocurrencies (such as Bitcoin and others) work.
Yes! Cryptocurrency exchanges are regulated by the Bangko Sentral ng Pilipinas (BSP). In fact, 17 virtual currency exchanges are registered with the BSP under Circular 944 and authorized to operate in the Philippines. However, cryptocurrencies are still not considered as legal currency in the country because these digital coins aren’t “issued nor guaranteed by a central bank nor backed by any commodity.”
For context, let’s use Bitcoin in this example. When you purchase Bitcoin, you buy a fixed number of slots in a virtual ledger, which for Bitcoin, is the blockchain. When you trade away your Bitcoin, you sell your slot in the blockchain.
Bitcoin uses electronic coins as its form of exchange. However, these electronic coins are nothing more than slots in the blockchain. A transaction is considered valid only when the majority of users in the network determine it is valid, therefore creating a complex system for exchange that is essentially impossible to hack.
Cryptography, the process of protecting information by using codes, is used for the security of cryptocurrencies. It’s also used to control transactions and increase the supply. With this feature, cryptocurrencies have become self-governing and self-regulating.
Digital money is free from the shackles and rules of traditional banks. This allows practically everyone to complete digital transactions without a third-party financial institution facilitating the process. By principle, the cryptocurrency model is a financial system designed by the people, for the people.
You can start trading cryptocurrencies for as low as ₱200. You can easily download your crypto platform’s official app and create your account from there.
Most cryptocurrency trading platforms are also easy to fund. You can either fund it through over-the-counter payments but the more convenient way is to go online. You can fund your crypto exchange account using your online banking app or your mobile wallet apps.
There’s no limit to how much you can withdraw from your account. However, some cryptocurrency trading platforms have set a minimum withdrawal amount.
Withdrawals from cryptocurrency exchange accounts are almost real-time thanks to it being completely digital. It will depend entirely on the payment channels you choose.
Below are some of the advantages of cryptocurrency trading platforms in the Philippines.
While cryptocurrencies are relatively young, they can bring potentially higher profits compared to other forms of investments. Yes, it’s risky, as cryptocurrencies’ values fluctuate fast over a short period. But in the world of investments, great risks come with great rewards.
Experienced investors go beyond the usual assets, such as bonds, stocks, and equities, to minimize losses and establish new sources of income and gains. They diversify their portfolio by putting their money in alternative investment vehicles, such as jewelry and even art pieces. So, if you’re already well-versed when it comes to investing and you want to try another asset, cryptocurrency could be a good start.
Cryptocurrency, after all, is a form of money. You can easily buy cryptocurrencies and sell them quickly. Just time your selling, so you can earn. Transactions are much easier these days, as there are many trading platforms available that will also help you come up with sound investment strategies.
Cryptocurrencies are portable, meaning you can bring them anywhere and use them anytime. And since your money is stored online or in a digital wallet, no one will know that you’re carrying thousands, millions, or even billions of dollars or pesos.
If you’re really adamant about trying out a cryptocurrency trading platform, don’t forget about its drawbacks and risks:
The value of cryptocurrency changes quickly; the value may be high right now, but it may drop a few minutes later. And if you don’t have a good strategy in place, you may experience massive losses. This may make some new investors quite anxious.
Hacking the cryptocurrency network will be very difficult. However, your hardware or virtual wallet, which stores your digital money and private keys, can still be hacked. And when that happens, your money may be stolen.
Ready to jump into the complex world of cryptocurrency? Let these guides help you through this journey.
5 Essentials for Cryptocurrencies: Get Started Now
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