Per multiple local news outlets, many Argentines have discovered that they can earn more money through P2P arbitrage and leveraging on exchanges and the market conditions. One of Binance Argentina’s top-level executives, Maximiliano Hinz, revealed a 45% increase in the company’s P2P operations within the past 30 days.
Argentines’ New Gold Rush
Argentines have discovered that one of the ways P2P market operators earn huge cash is to arbitrage between various markets. Hence, local media are reporting that the savings of those involved in this business might increase 5-fold per month. However, the amount they would earn depends on the payment methods available and their experience in the industry.
As an exchanger, they can buy a digital asset at low prices in one market and sell it in other markets with huge demand at a higher price. But, this isn’t always the case because P2P cashiers must have experience running several payment methods or accounts so that their customers can have varied options and access big spreads from several exchanges.
Most exchanges in Argentina operate P2P markets (a platform where users willing to swap cryptos or fiat are paired with each other). Some of the exchanges that run this kind of operation include Paxful and Localbitcoins.
Most of these exchanges have attested that their userbase has grown significantly in the last few weeks. Hinz further said, “there has been a huge spike in our userbase. We can estimate that our userbase surged by 45% within the past 30 days.” One of Paxful Argentina’s top-level executives, Renata Rodriguez, also agreed with Hinz’s perspective.
While she didn’t have the exact figures by which their userbase grew, Rodriquez stated that the company observed a quick surge in P2P operations. Also, OKEx’s operations executive, Alex Vazquez, added that “there has been a noticeable market recovery, especially in the last four weeks.” However, operators can’t benefit from the market spreads unless they have multiple payment methods.
According to inside sources, using PayPal, Payoneer, and other methods provide greater profits than most other payment methods. The reason is that these two methods are the two most popular ways that freelancers receive their earnings from their oversea clients and freelance platforms.
Even some crypto-paying investments pay their freelancers via PayPal and Payoneer. Furthermore, some people buy Amazon gift cards at a 25% discount and sell them at their actual value in other markets. But a huge worry for these P2P players is the volatility of the crypto markets. Hence, many prefer to perform stablecoins arbitrage like USDT, USDC, and other stablecoins.
Argentina’s Crypto Space
As widely reported, Argentina’s crypto space continues to expand into various dimensions. The nation’s inflation rise continues to affect its economy negatively. Hence, many residents have resorted to crypto to fight against inflation. According to a Bloomberg report, many have turned earnings from play-to-earn games into a full-time income. Despite the efforts of the Argentinian authorities to clamp down crypto activities through heavy crypto tax, the crypto space in the country keeps thriving.