Argentinians Are Now Using P2P Markets to Multiply Their Savings
Argentinians are now discovering that P2P (peer-to-peer) markets can be used to maintain or multiply their savings in crypto and foreign currency. According to local media sources, more and more Argentinians are using P2P exchanges and markets to apply arbitrage and earn money being P2P cashiers. Maximiliano Hinz, Latam operations director of Binance, states that their P2P business has grown 40% in just the last month.
Argentinians Rush to P2P Market Boom
Argentinians are discovering the way in which liquidity providers in P2P markets earn great amounts of money by arbitraging between different markets. According to reports from local media, this course of action might quintuple the savings of some investors monthly, depending on the availability of some payment methods and the ability of the P2P cashier.
These human exchangers can purchase crypto in cheap markets and then sell them in other international markets where the demand (and prices) are more interesting. However, this is not a given, as P2P cashiers need to manage different payment methods and accounts to give interesting options to their customers and score big spreads across different exchanges.
In Argentina, there are several exchanges that manage P2P markets, meaning that these act as platforms to pair users wishing to exchange cryptocurrencies for fiat currencies. These include Binance, Paxful, Airtm, Okex, and Localbitcoins, amongst others.
Growth and Earnings
Different companies have confirmed the growth reported by local sources. Maximiliano Hinz, Latam operations director of Binance, stated:
The growth has been quite organic. Due to the nature of the business, we can say that our active users grew by 40% last month.
Renata Rodríguez, marketing manager for Paxful Latam, stated in the same vein that new user registrations in Argentina increased more than 110% in the last year.
Other companies have not offered precise numbers, but have declared they have also detected a sharp increase in the activity of P2P markets. This is the case with Alex Vázquez, P2P operations manager of Okex, who stated:
We detected a marked rebound, in particular, from last month.
Also, these traders must have different payment methods to take advantage of the new spreads available depending on the markets involved. Local sources state that uncommon payment methods, including Payoneer and Paypal, might yield higher earnings when compared to others. This is because they are used by freelancers in the country seeking to obtain fiat and cryptocurrency paying with these platforms.
Amazon gift cards can often be purchased with a discount rate of 25%, to be later sold at face value in other markets. However, volatility in crypto markets is a real concern for P2P cashiers, that prefer to trade stablecoins such as USDT and others.
What do you think about the rise of P2P markets in Argentina? Tell us in the comments section below.