A Beginner's Guide To Bitcoin Investing In The Philippines

Bitcoin is a decentralised digital currency that can be used to make transactions, such as buying or selling products and services. It is a highly volatile market and has been associated with scams and illegal transactions. However, it is not a scam itself, and its blockchain technology is safe and proven. In the Philippines, there are several platforms where you can buy Bitcoin, including Coinbase, Coins.ph, Binance, and eToro. Before investing, it is important to understand the technology behind Bitcoin and be aware of the risks involved.

How to create a digital wallet

To start investing in Bitcoin in the Philippines, you'll need to create a digital wallet. Here's a step-by-step guide on how to do that:

Choose a Bitcoin Wallet Type

There are several types of Bitcoin wallets, each with its own advantages and considerations in terms of security, accessibility, and convenience. The main categories include:

• Hardware wallets: These are physical devices, such as a USB drive, that store your private keys offline. They offer increased security but may require additional steps for accessing your funds.
• Software wallets: These are applications installed on your computer or smartphone, such as mobile wallets or desktop wallets. They are convenient for frequent transactions and quick access but are more vulnerable to hacking attempts.
• Online/web-based wallets: These wallets run on the cloud and can be accessed from any device or location. While convenient, they store your private keys online, making them more susceptible to hacking attacks.

Select a Wallet Provider

Once you've decided on a wallet type, it's time to choose a specific wallet provider. Popular options among Filipinos include Coins.PH, Abra, and Binance. Each platform may have different features, so be sure to research and compare them before making a decision.

Create an Account

Go to the website or download the app of your chosen wallet provider. Sign up by providing the required information, such as your email address, phone number, and a secure password. You may also need to submit valid IDs, such as a passport or driver's license, for verification purposes.

Fund Your Wallet

After your account has been verified, you can start depositing funds into your wallet. This can typically be done through various methods, such as bank transfers, debit cards, or even cash deposits at partner locations.

Buy Bitcoin

Once your wallet is funded, you can start purchasing Bitcoin. Keep in mind that the process may vary slightly depending on the platform you choose, but it usually involves entering the amount of Bitcoin you want to buy and confirming the transaction.

Remember always to do your research, understand the risks involved, and only invest what you can afford to lose. Bitcoin and cryptocurrency, in general, are highly volatile and unregulated, so it's essential to be cautious when investing.

How to fund your digital wallet

After creating your digital Bitcoin wallet, you can start funding it via bank-to-bank transfer, 7/11 stores with Cliqq kiosks, debit card, and other methods.

For example, if you're using Coins.ph, you can fund your account by depositing your desired amount through bank transfer, or by visiting a 7/11 store with a Cliqq kiosk. You can also use a debit card to fund your Coins.ph account.

If you're using Binance, you can fund your account by depositing your desired amount through bank transfer. You can also use other methods such as PayPal or credit card, but there may be additional fees involved.

If you're using eToro, the minimum deposit is $200, and you can use various methods such as bank transfer, PayPal, or credit card.

It's important to note that different platforms may have different requirements and processes for funding your digital wallet, so be sure to check the specific instructions for the platform you're using. Additionally, some platforms may have minimum deposit requirements, so be sure to review the details before proceeding.

When funding your digital wallet, it's crucial to prioritize security and protect your personal information. Always use secure and trusted platforms, and avoid providing sensitive information to unverified sources.

How to register for a Bitcoin exchange

Registering for a Bitcoin exchange in the Philippines is a relatively straightforward process. Here is a step-by-step guide on how to get started:

• Choose a reputable platform: Select a well-known and trusted platform such as Coins.ph, Binance, or eToro. These platforms offer different features and services, so it is essential to research and choose one that suits your needs.
• Visit the official website: Go to the official website of your chosen platform. Look for a "Sign-Up" or "Register" button, usually located in the upper right corner of the page.
• Provide necessary information: You will need to provide some personal information, including your email address, phone number, and password. Some platforms may also require your date of birth, country of residence, and a valid ID such as a passport or driver's license.
• Verify your email address: After submitting your information, check your inbox for a confirmation email. Click on the link or enter the one-time password (OTP) sent to your email to verify your email address.
• Create a password: Choose a secure password for your account on the exchange platform. Avoid using easily guessable passwords or passwords that you have used on other accounts.
• Verify your phone number: Enter your phone number, including the area code, and submit it for verification. You will receive an SMS with a verification code, which you will need to enter on the website to complete the verification process.
• Complete account verification: To gain full access to the exchange's features, you may need to verify your identity further. This typically involves submitting additional documents and information as part of the "Account Verification" process.
• Fund your account: Once your account is set up and verified, you can start depositing funds into your account. Different platforms may offer various funding options, including bank transfers, debit cards, or other payment methods.
• Buy Bitcoin: With funds in your account, you can now purchase Bitcoin. The process may vary depending on the platform, but you will typically need to place a buy order, specifying the amount of Bitcoin you want to purchase.

Remember to do your research before choosing a platform and investing in Bitcoin. Understand the risks and volatility associated with cryptocurrencies, and only invest what you can afford to lose.

How to verify your account

To start investing in Bitcoin in the Philippines, you will need to open a Bitcoin wallet. Coins.ph and Satoshi Citadel Industries (SCI) are two companies licensed by the central bank to conduct virtual currency (VC) exchange.

The process of verifying your account will depend on the platform you choose. Here is a general overview of the steps involved in verifying your identity on a cryptocurrency platform like Coinbase:

• Access the mobile app or website of your chosen platform and sign in to your account.
• Navigate to the platform's Document Verification page and follow the on-screen instructions.
• Ensure that the information on your documents matches your current account details.
• Provide the required identity verification documents, such as a state-issued ID (e.g. driver's license), passport, or national identity card. Note that the platform may not accept temporary or expired IDs.
• In some cases, you may also need to provide proof of address, such as a recent credit card statement.
• For a selfie video, ensure your microphone is turned on and follow the in-app instructions.
• Wait for an email confirmation once your verification is complete.

Identity verification typically takes 10 minutes to 48 hours to complete. Until your identity is verified, your account will have limited functionality.

How to buy and sell Bitcoin

Bitcoin is a digital currency that can be used to make transactions, such as buying or selling products and services. It is a decentralised currency, meaning there is no central authority that controls it.

How to Buy Bitcoin

There are three main ways to buy Bitcoin:

• Through Bitcoin wallet apps like the Bitcoin.com Wallet app
• Through brokerages like eToro
• Through cryptocurrency centralized exchanges (CEXs) like Coinbase, eToro, Gemini, Binance, or Coins.ph

To buy Bitcoin, you will need to open an account with a crypto exchange and connect your bank account. Most cryptocurrency exchanges accept bank deposits via debit cards and wire transfers. You will also need to verify your identity by submitting the required documents online.

Once your account is set up and verified, you can start investing. It is recommended to start with a minimum of $100 or $200 when investing in crypto.

How to Sell Bitcoin

Selling Bitcoin is similar to buying it. You can sell Bitcoin on a crypto exchange by transferring it from your Bitcoin wallet to your exchange account. From there, you can sell it for your local currency and withdraw the funds to your bank account.

It is important to note that Bitcoin is a highly volatile market, and investing in it carries risks. It is recommended to do your research and understand the technology behind Bitcoin before investing.

Tips for Investing in Bitcoin

• Don't invest if you don't know how the technology behind it works.
• If it's too good to be true, then it's not true.
• If you tend to invest with your emotions, Bitcoin isn't for you.
• It's a highly volatile market—invest at your own risk.
• Consider using a digital wallet service like Coins.PH, Abra, or a BSP-regulated exchange like PDAX, Citadax, or Coins.Pro.
• Remember that Bitcoin transactions can be traced with a hash code, and you are in charge of your money.
• Be aware of the risks involved, such as scams, the volatility of the market, and the importance of keeping your private keys secure.

Frequently asked questions