Future Bitcoin Halving

Bitcoin is inching closer to its next major milestone, the highly anticipated halving event in May 2024. This event, which occurs approximately every four years, is one of the most significant and widely observed in the cryptocurrency world.

Bitcoin is built on a novel supply-limiting mechanism that reduces the number of new coins entering the market by half every four years. This mechanism causes volatile price swings, which attract investors looking to profit. As the hype surrounding the upcoming supply cut grows, the crypto community is preparing to closely monitor its impact on the price trajectory of Bitcoin as well as other cryptocurrencies.

What is Bitcoin Halving?

Bitcoin halving is the periodic decrease of block rewards granted to miners by 50%. This deflationary technique was included within the Bitcoin protocol by its creator, Satoshi Nakamoto, to limit supply, making the asset scarcer. Since Bitcoin’s debut in 2009, the reward for miners has been halved three times, from 50 BTC to the current 6.25 BTC per block.  

The fourth halving, expected sometime in May 2024, will further cut rewards to 3.125 BTC. Halving is critical to Bitcoin achieving its maximum quantity of 21 million coins. Once the limit has been crossed, miners will rely only on network fees to generate money.

Historical Impact of Bitcoin Halving

Bitcoin halving occurrences have consistently catalyzed long-term bull markets. The limited amount of fresh bitcoin entering the market has often resulted in supply-demand mismatches, raising prices.

Specifically, in the 12-18 months following the previous two halvings in 2016 and 2020, Bitcoin registered triple-digit percentage gains. The 2016 halving preceded the monumental crypto bubble of 2017, with Bitcoin surging over 2,500% to its peak of nearly $20,000. The rally post-2020 halving was more muted in percentage terms but impressive nonetheless—a 600% climb to an all-time high exceeding $67,000 by October 2021.

These violent uptrends are based on simple economics: The deep supply cuts halve Bitcoin’s inflation rate, creating scarcity that fuels bidding wars, especially if demand continues to rise. (Fear of Missing Out) FOMO then fuels a self-sustaining frenzy. The price spikes eventually subside but remain higher in comparison to pre-halving levels.

The past halving rallies also attracted droves of new investors and developers into crypto, sparking waves of innovation. The 2020 halving ignited DeFi and NFT trends, transforming the ecosystem. Hence, halvings wield influence far beyond Bitcoin, rippling across altcoins and shaping the overall growth trajectory of the crypto industry.

Potential Crypto Market Response

If historical patterns hold up, the next Bitcoin halving should usher in similarly euphoric market conditions between 2024 and 2026. Investors should expect some volatility in the days leading up to and after the halving event. Depending on the prevailing sentiment, this could manifest as minor corrections or even flash crashes.

However, once the supply shock caused by halving subsides, a sustained upward trend will emerge over the next few months.  Based on past returns, Bitcoin could surpass the critical $100,000 mark in 2025 on its way to setting new all-time highs. The exact peak is unknown, but bold estimates indicate that $200k to $500k is possible by 2026 if adoption accelerates globally.

The interest around Bitcoin will likely spill over into altcoins, igniting the next altseason. However, macroeconomic issues and new regulations remain wildcards that, if negative, could derail any rally.

Mining and Crypto Assets After Halving

The halving forces crypto miners to consolidate as lower bitcoin payouts put pressure on profit margins. Less efficient miners may leave the network entirely after the next halving. Only the largest mining pools with elite hardware and access to the cheapest energy are likely to survive future halvings.

In contrast, long-term investors in Bitcoin and other deflationary cryptocurrencies should benefit from the scarcity effect of halving. However, if demand shrinks or fails to keep up with declining issuance, prices may stagnate or even fall. This is an unlikely but plausible ‘black swan’ outcome if adverse conditions converge.

Possible Scenarios Moving Forward

Bitcoin halving scenarios can be broadly classified under three archetypes – optimistic, neutral, and pessimistic:

Optimistic Scenario

The optimistic scenario entails a prolonged price boom through 2025-26, extending Bitcoin’s record highs dramatically, potentially even reaching $500k as per some of the bolder predictions. This would require unrelenting investor enthusiasm and no adverse regulatory or macroeconomic shocks. Significant network growth and crypto integration worldwide would also bolster this trajectory.

Neutral Scenario

Under a neutral scenario, Bitcoin and crypto-assets would continue trending upward but more subdued over a multi-year horizon. This assumes moderate, stable adoption without any disruptive setbacks. While still positive, returns would be less exponential than past halvings, given the maturing market structure. Prices would still reach new highs but peak within the $75k to $150k range before correcting.

Pessimistic Scenario

The pessimistic outlook would include either a bear market or extended negative pressures, causing Bitcoin to decline below the current levels for an extended duration post-halving. Triggers could include restrictive policies, major hacking incidents, mining disruptions, or deep macroeconomic issues sapping investment demand. While this remains the least likely outcome, the possibility cannot be fully discounted given crypto’s volatility.

Take advantage of the opportunity

Since the most likely outcome of the spring halving will be a strong price increase in the market, you need to be prepared. Your crypto will rise in price significantly and you may want to exchange it.
In this case, we have a trusted partner for you – the HiRiBi platform. Try it now so that you will already be familiar with this site during the halving period.

Crypto Exchanges in South and Central America

According to a 2023 Chainalysis report, Latin America, which includes South and Central America, is the world’s seventh-largest crypto economy, trailing only Sub-Saharan Africa. Nonetheless, South and Central America have recently experienced increased cryptocurrency adoption. Brazil and Argentina were ranked ninth and fifteenth in global crypto adoption in 2023, respectively. Other countries, such as El Salvador and Venezuela, have also made significant progress in embracing crypto, earning this region global attention.

What is driving crypto adoption in Central and South America?

To better understand this, let us look at the several countries in the region that made Chainalysis’ top-20 list.

Argentina

Argentina has a history of financial instability and high inflation. In 2023, interest rates surpassed 96%, while inflation reached 108%. This hyperinflation, combined with a tech-savvy population, has led many Argentinians to turn to cryptocurrencies, especially stablecoins, to safeguard their wealth. The government also encourages crypto adoption, with newly elected President Javier Milei being pro-Bitcoin.

Brazil

While the Argentine population is drawn to digital assets due to the devaluation of their domestic currency, Brazil is interested for a separate reason. This is evident from the difference in crypto assets traded and held by both populations.

Unlike Argentinians, who have a higher demand for stablecoins, Brazilians prefer Bitcoin and altcoins, which are typically used for investment purposes. Brazil also features a large institutional crypto market and a strong presence in decentralized finance, placing it among the wealthier crypto economies.

El Salvador

El Salvador became the first country in the world to make Bitcoin their legal tender in September 2021, led by pro-Bitcoin President Nayib Bukele. El Salvador has since purchased 2823 Bitcoin, valued at approximately $121.8 million, according to the Nayib Bukele tracker. 

Nayib’s vision for Bitcoin in El Salvador as the country prepares for the 2024 general elections on February 4, includes Bitcoin-backed bonds and a tax-free Bitcoin City. This vision denied the country a shot at a $1.3 billion loan from the International Monetary Fund (IMF) in 2022. The IMF opposed Bitcoin’s legal tender status in El Salvador and asked the state to reconsider the move, citing financial risks and consumer protection concerns.

Best Crypto Exchanges in Central and South America

Chainalysis reports that over 60% of cryptocurrency trading in Latin America occurs on centralized exchanges (CEXs). Venezuela (92.5%), Colombia (74%), Argentina (63.8%), and Brazil (60.7%) take the lead.

Let us take a look at the most popular exchanges among Central and South Americans.

Binance

Binance is the largest centralized exchange globally in terms of trading The exchange’s peer-to-peer trading platform supports local currencies from multiple countries, including the Brazilian Real, Peruvian Sol, Colombian Peso, and Argentine Peso, among others.

In 2023, Binance became the first fully licensed crypto exchange in El Salvador.

Strengths: High liquidity, 400+ cryptocurrencies, advanced trading features, fiat on-ramps, multiple languages.

Withdrawal methods and commissions: Binance supports bank transfers, crypto wallet transfers, and P2P trading. Crypto wallet transfers incur network fees—dynamic charges that vary depending on market conditions. Fiat withdrawal fees, on the other hand, vary by country. For instance, transfers to the Argentine peso charge a 1% fee.

Bitso

Bitso is a crypto exchange based in Mexico that also serves the Brazilian and Argentine populations.

Strengths: 50+ cryptocurrencies, low trading fees, intuitive interface in Portuguese and Spanish, responsive customer care system, mobile app, easy registration. 

Supported fiat currencies: Argentinian Peso, Colombian Peso, and Brazilian Real.

Withdrawal methods and commissions: Bitcoin withdrawals, Ethereum withdrawals, SPEI, Ripple gateway, bank transfers. SPEI, Ripple gateway, and bank withdrawals are free, but Bitcoin and Ethereum withdrawals cost 0.001 BTC and 0.0025 ETH, respectively.

Trading fees on Bitso are based on trade volume and decrease as volume increases. For volumes less than 1,500,000 MXN ($87.5k), the maker fee is 0.5%, and the taker fee is 0.65%.

Buda

Buda is a Chile-based crypto exchange focused on the markets of Argentina, Colombia, and Peru.

Strengths: 90% of their holdings are cold wallets, 99% uptime, a mobile app, and a lucrative referral program.

Supported fiat currencies: Colombian peso, Argentine peso, Peruvian sol and Chilean sol.

Withdrawals and commissions: Buda charges a fixed 0.000051 BTC per Bitcoin withdrawal. Fiat withdrawals are possible via bank transfers, with varying fees.

Buda also charges a 1.2% commission on all standard accounts, regardless of transaction volume or currency. However, it employs a tiered trading system to incentivize activity. The highest tier (tier 7) charges 0.2% for taker trades and 0.1% for makers.

Buda also has some limitations that are worth nothing.

  • Only supports major cryptocurrencies, including BTC, ETH, LTC, USDC, and BCH.
  • Lacks support for leading fiat currencies like the dollar.
  • Lacks support for margin or leveraged trading.

Other popular exchanges in Central and South America

  • Mercado Bitcoin: Largest cryptocurrency in Brazil.
  • Ripio: Argentina-based popular for fiat on-ramps.

Can I buy crypto using PayPal in Central America and South America?

Using PayPal with cryptocurrency exchanges in Central and South America remains unpopular due to regulatory restrictions. However, workarounds exist. Leading exchanges like Bybit provide a peer-to-peer (P2P) marketplace that accepts PayPal as a payment method for over 700 cryptocurrencies.

This allows Bybit users to connect with sellers who accept PayPal for crypto purchases and pay them in fiat off-chain. Crypto assets are held in escrow and only released once the seller confirms they have received payment. While Bybit does not charge a deposit fee for PayPal transfers, users should be aware of PayPal’s fees, which may include currency conversion and transaction processing charges.

Last But not Least

Also, if you are interested in working with crypto and then withdrawing money to PayPal, you should try HiRiBi.
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Crypto mining these days

Cryptocurrency mining is a practice as old as the first cryptocurrency. And, like the fast-paced industry underpinning it, crypto mining requires attention to keep up with the constant updates.  For instance, in the early days, anyone with a computer and some technical skills could mine cryptocurrencies like Bitcoin. Fifteen years later, mining difficulty has skyrocketed, making solo mining of major cryptocurrencies practically impossible. Investor-backed mining farms using powerful computers that solve complex mathematical problems at incredible speeds dominate the industry.

This article delves into the state of modern-day crypto mining, exploring its methods, costs, profitability and environmental footprint.

What is cryptocurrency mining?

Cryptocurrency mining is the process of validating blockchain transactions through a proof-of-work (PoW) consensus mechanism. It involves solving complex mathematical puzzles with specialized computer hardware to verify the legitimacy of new blockchain transactions. Miners are rewarded with freshly minted cryptocurrency units for their efforts.

Mining is critical for maintaining security and decentralization within a blockchain network. Bitcoin, Litecoin, and Dogecoin are among the most popular blockchains that rely on miners to verify transactions.

Crypto mining in 2024: CPUs to ASICs

Satoshi verified the first Bitcoin block in 2009 using a computer’s basic central processing unit (CPU). However, as cryptocurrencies gained popularity, the mining industry shifted towards more complex mining hardware. By 2010, miners were migrating to Graphics Processing Units (GPU), which used complex graphic cards from companies like Nvidia for computations.

GPUs later paved the way for the much more powerful Application-Specific Integrated Circuits (ASICs) as mining blossomed into a billion-dollar industry. The first ASICs had a processing power that was at least 200 times greater than that of a standard GPU miner.

ASICs run complex algorithms at breakneck speed, securing networks and rewarding their operators. They are popular among Bitcoin miners due to their high hash power and energy efficiency. Some other cryptocurrencies can still be mined using GPUs and CPUs, and some, like Monero, are resistant to ASICs.

Mining pools have also emerged as a trend as individual mining becomes more difficult. Miners combine their hashing power to compete more effectively. While desirable, this consolidation of power raises concerns about centralization and the future accessibility of mining to small players.

Top ASIC Miners for 2024

While more expensive than GPUs and CPUs, ASICs lay the groundwork for the next generation of mining rigs. They are specifically designed for the hash algorithms used by a given cryptocurrency This enables them to perform computations significantly faster and with much lower energy consumption than GPUs.

In the table below, we have compared the top 5 ASIC miners for 2024 to help you make an informed decision on the one that fulfils your needs.

Note that the prices shown below are not constant, and vary by vendor.

Manufacturer
Miner 		Hash rate (Th/s) Power consumption (Watts)
Price
MicroBT WhatsMiner M63S 390 7215 $11,409.00– $11,578.00
MicroBT WhatsMiner M63 334 6646 $9,622.00 – $10,277.00
Bitmain Antminer S19 Pro 110 3250 $1,802.00 – $1,917.00
MicroBT WhatsMiner M30S++ 112 3268 $1,260.00 – $1,438.00
Canaan AVALONminer 1246 90 3420 $2,100.00– $2,899.00

Miner profitability in 2024: should you get involved?

The volatile nature of cryptocurrency prices is an important consideration when evaluating profitability as a miner. Several factors influence the price of a cryptocurrency, including market sentiment, news events, and regulatory changes. Understanding these complex dynamics is critical because of the significant effect they have on price stability.

Bitcoin Halving and its effect on Miner profitability

Bitcoin is less than 100 days away from an important event known as the halving. The bitcoin halving event, which occurs approximately every four years, reduces the number of newly created bitcoins awarded to miners by half.

Since the last halving event in 2020, the miner reward has been 6.25 bitcoins. Following this year’s halving event, which is expected to occur around April, the reward will be reduced to 3.125 bitcoins.

The price of Bitcoin has historically risen post-halving, offsetting the impact of reduced rewards. However, there is no certainty that this trend will continue this year. Even then, prices do not rise immediately. Miners must prepare for the short-term effects of reduced rewards.

Crypto mining and market fluctuations

Adding new blocks becomes more difficult as the number of miners on a network increases. This increased mining difficulty can limit supply, potentially driving up prices.

However, unprofitability may scare away miners. If miners leave, the difficulty decreases, resulting in a greater supply of new coins and downward pressure on the price.

Crypto mining and environmental concerns

Cryptocurrency mining has sparked widespread criticism from environmentalists worldwide. The Proof-of-Work (PoW) consensus mechanism used by cryptocurrencies like Bitcoin requires a lot of energy to solve complex algorithms. “Proof of work is a huge competition across computers, and that race to find a solution takes a lot of power,” Creative Emergy CEO Marc Lijour once said.

The massive electricity consumption, which has at some point exceeded the annual usage of small countries, raises concerns about carbon emissions and resource depletion. As a result, less energy-intensive consensus mechanisms such as Proof of Stake (PoS) are gaining popularity.  In September 2022, Ethereum took a significant step towards a greener ecosystem with “The Merge.” The previous PoW network switched to a PoS system, reducing its energy requirements by more than 99%.

Such a transition for Bitcoin is harder.  As a result, experts have proposed alternative methods, such as sourcing power from renewable sources and recycling the heat—a practice already gaining adoption globally.

Don’t forget about exchanges!

If you are not ready to become a real miner, there are other ways to work with crypto. And you can do it profitably and regularly.
We are, of course, talking about exchanges and trades. If you are interested in this, you should try HiRiBi.
The working conditions and prices there will quickly turn you into the biggest fan of crypto exchanges!

Bitcoin in 2024

Earlier this week, the cryptocurrency community scored its first major victory of 2024 with the approval of spot Bitcoin ETFs in the United States. This has sparked a lot of excitement, catapulting Bitcoin to a cycle high of $49,000. Now eyes are on the next major event in May: the Bitcoin halving. Post-halving investors believe Bitcoin will gather enough momentum to break through its 2021 all-time high of $69,000.

Read on as we explore this possibility and the impact of a Bitcoin boom on the broader cryptocurrency market. 

Bitcoin Price History 2021-2023: Boom, Bust, and Potential Bounce Back

2021 was a tremendous year for the cryptocurrency industry. Nearly every crypto coin and token skyrocketed to new highs. Bitcoin rose to an all-time high of $68,770, with a market capitalization exceeding $1 trillion.

Then 2022 came, and everything changed. The once-thriving market faced a brutal reckoning, with the Terra/Luna crash, FTX downfall, and regulatory crackdowns sending shockwaves through the industry. By December 2022, the value of Bitcoin had plummeted from just a steak shy of $69,000 to around $16,000.

The crypto winter thawed out in 2023, with a significant recovery across the board. BTC saw a 150% price increase, closing the year above $42,000. Several positive trends contributed to the recovery. Easing global inflationary pressures drew more investors back to riskier assets. In addition, several regulatory developments pointing towards clearer cryptocurrency laws increased investor confidence and stabilized the market. As the regulatory fog lifted, institutional investors began to dip their toes into the industry.

These glimmers of progress and Bitcoin’s historical resilience laid the groundwork for a renewed bull run in 2024.

Spot ETF & Halving 2024: Can They Launch Bitcoin to New Heights?

Two key factors stand out as potential catalysts for a Bitcoin boom in 2024: spot ETF approval and the May Bitcoin halving event. But can they propel the asset past ATH?

Bitcoin nears $49k for the first time since 2021 as US ETF Trading Starts

On Wednesday, January 10, 2023, the U.S. Securities and Exchange Commission (SEC) approved the first exchange-traded funds (ETFs) to track Bitcoin in the country. For over a decade, asset managers in the country have advocated for a spot Bitcoin ETF. The SEC giving in after a series of rejections over the years was a huge win.

Unlike the already approved Bitcoin futures ETFs, which hold derivatives contracts tied to Bitcoin, a spot ETF holds actual BTC and directly tracks its price. This development is set to attract more institutional and retail investors to Bitcoin, boosting demand and liquidity.

Eleven asset management firms, including industry titans like BlackRock, Fidelity, and Grayscale, applied to offer Bitcoin spot ETFs. Trading volume exceeded $7.6 billion in the first two days. All of this validates the prediction of growing institutional and retail investor interest. And sure enough, the price of Bitcoin soared past $48,000 for the first time in nearly two years.

Bitcoin Halving 2024 Countdown: Why Does It Matter?

After every 210,000 blocks or approximately every four years, the Bitcoin mining reward is reduced by half. This is called the Bitcoin halving event. After each halving event, miners earn half as many coins for adding blocks to the Bitcoin protocol. For instance, since the last event in 2020, miners have earned 6.25 BTC, which will reduce to 3.125 BTC this year. As a result, the number of bitcoins entering circulation will fall.

The logic behind halving is simple: a lower supply of Bitcoin and an unchanged or potentially higher demand will boost the price. Historically, halvings have coincided with Bitcoin price booms a few months after halving, prompting speculation about similar behaviour in 2024. However, the period leading up to and shortly after the event is rocked by price volatility.

Bitcoin 2024 Price Prediction

Bitcoin is currently hovering around $43,000. BTC has yet to make significant gains in 2024 despite briefly soaring close to $49,000 post-ETF approval. However, BTC bulls are optimistic that the asset will see notable gains later in the year as the effects of the spot ETF and upcoming halving become more evident.

Here are some expert predictions on the price of Bitcoin in 2024:

  • VanEck, a global investment fund, predicts that Bitcoin will reach new all-time highs by Q4.
  • Mark Mobius, who correctly predicted that Bitcoin would fall to $20,000 in 2022, predicts that BTC could reach $60,000 by the end of the year.
  • James Butterfill, head of research at CoinShares, is more bullish, predicting a climb to $80,000. However, James believes that the halving is priced in. Instead, he bases his predictions on ETF approval and interest rate cuts.
  • Late last year, Standard Chartered doubled down on an earlier prediction that Bitcoin would reach $100,000, owing to the approval of numerous ETFs.
  • Seth Ginns of CoinFund Venture Capital has the most bullish forecast for Bitcoin in 2024. Seth predicts the price will rise to between $250,000 and $500,000.

What does a new Bitcoin ATH mean for the rest of the crypto market?

When the price of Bitcoin rises, investor confidence grows, and this may spill over into the altcoin market as investors seek diversification and higher returns. This ignites another wave of rallies known as the altcoin season. During this period, altcoins experience significant price increases, outperforming Bitcoin. Investors are diversifying their portfolios and looking beyond Bitcoin to emerging altcoins in sectors such as DeFi, NFTs, and Web3.

While riskier, the alt season generates the highest returns and accounts for the most crypto millionaires. The narratives set to dominate the 2024–25 bull run include:

  • Decentralized finance
  • Artificial Intelligence
  • Real World Asset (RWA) tokenization
  • Web 3 Gaming
  • Meme coins

Conclusion

2024 stands as a pivotal year for Bitcoin and the broader crypto market. The recent ETF approvals and the upcoming halving event paint a positive picture for the entire industry. If the next bull run is anything like previous ones, it will set new highs, creating a new cohort of crypto millionaires.

 However, cryptocurrency remains a highly volatile asset class, and investing in it carries significant risk. Always conduct thorough research, understand your risk tolerance, and invest only what you can afford to lose.

And if you are not only a potential investor but also a user who is actively engaged in the exchange, then think about HiRiBi.
It is always fast, profitable, and reliable! The platform has been tested by time and all the “bad weather” of cryptocurrency development.

CRYPTO & PHILIPPINES

Cryptocurrency is gaining rapid global acceptance, and the Philippines has not been left behind. The country, which has a population of over 100 million people, has seen increased crypto adoption as the technology reshapes investments, online payments, and transactions.

According to a 2023 report by Statistica, the Philippine digital asset market is expected to exceed $185,300 (10.3 million PHP) in 2024, representing a 34.5% uptick from 2023.

This growth can be attributed to a rapidly expanding crypto community and crypto-friendly legislation. The industry also benefits from the large Filipino population working abroad, who have turned to cryptocurrency to send money back home due to its speed and lower costs.

Is crypto legal in the Philippines?

As previously stated, one of the key drivers of crypto growth in the Philippines is a crypto-friendly legal framework. But how far does this go?

The two main crypto regulators in the country are the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). The BSP is the country’s central bank, overseeing all monetary policy, whereas the SEC is the government agency in charge of securities and financial instruments.

Bangko Sentral ng Pilipinas (BSP)

In February 2017, the BSP acknowledged the legitimacy and validity of cryptocurrencies in the Philippines with Circular No. 944, which established the laws and regulations that would govern the assets. According to the circular, virtual currency exchanges must register with the BSP as transfer and remittance businesses before initiating operations.

It is important to note that while cryptocurrencies are a legal method of payment in the Philippines, they are not legal tender as they are not issued by the BSP.

BSP followed up with the Virtual Asset Service Providers (VASPs) guidelines in 2021. These guidelines provided a more thorough picture of the BSP’s stance on cryptocurrency.

Among the highlights of the VASPs guidelines were:

  • A VASP must register with the central bank—BSP—before operating in the country
  • VASPs must apply Know-Your-Customer (KYC) procedures and follow anti-money laundering (AML) and counter-terrorism funding (CTF) regulations.
  • VASPs must implement consumer protection measures against cyberattacks.

Securities and Exchange Commission (SEC)

Unlike its counterpart in the United States, the Philippine SEC is more optimistic about cryptocurrencies. When asked about their position on digital assets during the country’s Blockchain Week last year, Kelvin Lester Lee, the Philippine SEC Commissioner, said the agency was open to the idea. He added that the agency understood that “this is the next step of evolution when it comes to the financial system” and that they would want to “try to accommodate it, subject to appropriate laws.” 

The SEC plans to roll out a new legal framework for cryptocurrencies in the country in H1 2024. The legal framework was supposed to be released in 2023, but it was postponed following the collapse of the FTX exchange in 2022. 

In November 2023, the SEC issued a public warning against Binance, the world’s largest crypto exchange, claiming that the company was operating illegally in the Philippines. Furthermore, the SEC moved to prohibit Google and Meta from allowing Binance ads in the country. 

Crypto Taxation in the Philippines

The Philippine government recently enacted legislation requiring all cryptocurrency holders and traders to report capital gains on their annual tax returns. Furthermore, the government levies a capital gains tax of up to 15% on all cryptocurrency transactions, including profits and purchases in crypto.

As the country’s legal framework for cryptocurrencies continues to evolve, there have been discussions about implementing new crypto taxes in 2024. As a result, it is recommended that you stay up-to-date on the latest developments in this field and seek professional advice to ensure that you remain compliant with the fast-changing laws.

Use cases for cryptocurrencies in the Philippines

Cross-border payments and remittances are the most popular use case for cryptocurrency in the Philippines. Philippine citizens working abroad are required to send at least 10% of their earnings back home to their families. In comparison to traditional banks, cryptocurrencies emerged as a more cost-effective and time-efficient option.

Moreover, the Philippines shares the rest of the world’s enthusiasm for cryptocurrency as an investment vehicle, with citizens engaging in decentralized finance activities such as staking, lending, and borrowing, as well as long-term holding and NFT trading.

Popular Cryptocurrency Exchanges in the Philippines

Crypto traders in the Philippines have over 100 cryptocurrency exchanges to choose from. The tokens supported, local currency (PHP) support, and fees charged are all factors you should consider when deciding which exchange to use. Based on these factors, here are the best exchanges to use in the Philippines in 2024.

Exchange Maker’s Fee Taker’s Fee PHP Deposits Number of Supported Coins Philippine-based
Philippine Digital Asset Exchange (PDAX) 0.4% 0.5% Yes 13 Yes
Coins.ph 0.25% 0.3% Yes 34 Yes
Bybit 0.1% 0.1% Yes 298 Global
Kraken 0.16% 0.26% No 205 Global
OKX 0.08% 0.1% Yes 367 Global
EToro 1% 1% Yes 79 Global
Crypto.com 0.075% 0.075% No 288 Global

What is unique about each of these exchanges?

  • PDAX: BSP-licensed
  • Coins.ph: PHP pairs
  • Bybit: No KYC required, ideal for Futures and Options
  • Kraken: Security-focused
  • OKX: Low fees
  • EToro: Traditional assets support
  • Crypto.com: Low fees

Banks Offering Crypto-Related Services In the Philippines

UnionBank of the Philippines announced in September 2023 that it had acquired a BSP license to operate as a virtual asset service provider, making it the first and only universal bank to receive this approval in the country. The license enabled the bank to expand its cryptocurrency operations, allowing citizens to trade Bitcoin through its app. This feature was previously only available to a few select customers.

UnionBank has been at the forefront of cryptocurrency adoption in the Philippines, becoming the first bank to roll out the first crypto ATM in 2019.

While we may see more banks in the Philippines venture into cryptocurrencies in the future, UnionBank stands alone as of January 2024.

One More Important Thing

In addition to the aforementioned well-known crypto exchanges, we would like to mention the HiRiBi platform. This service is popular in the Philippines and has several advantages. Among them are the speed and anonymity of transfers, complete security of funds, and a profitable referral program. But, most importantly, it has exchange rates that are consistently higher than the market and currently amount to more than +20%!
Be sure to pay attention to this site if you work with crypto exchanges. You will be pleasantly surprised!