What is Cryptocurrency? A Beginner's Guide for Filipinos

If you've heard about Bitcoin or cryptocurrency and wondered what the fuss is about, you're not alone. Over 10 million Filipinos now use cryptocurrency, and more than half are planning to invest in 2025. But what exactly is cryptocurrency, and why does it matter for everyday Filipinos? This guide breaks down everything you need to know in simple, practical terms.

What is Cryptocurrency?

Cryptocurrency is digital money that exists only on computers and the internet. Unlike the peso bills in your wallet or coins in your pocket, you can't physically touch cryptocurrency. Think of it like the money in your GCash or Maya app — it's digital, you can send it to others instantly, and you check your balance on your phone. The key difference is that cryptocurrency isn't controlled by any single company, bank, or government. Instead, it's managed by a network of thousands of computers around the world.

Bitcoin, created in 2009, was the first cryptocurrency and remains the most famous. Since then, thousands of other cryptocurrencies have been created, including Ethereum, Solana, and stablecoins like USDT that are designed to maintain a steady value equal to one US dollar. Each cryptocurrency serves different purposes, but they all share the same basic principle: they're digital, they use cryptography for security, and they operate on blockchain technology. The word "cryptocurrency" comes from "cryptography" — the advanced mathematics used to secure transactions and control the creation of new coins. This makes cryptocurrency incredibly difficult to counterfeit or hack when used properly, much more secure than copying physical money or credit cards.

How Cryptocurrency Actually Works

To understand how cryptocurrency works, imagine a notebook at your local palengke where every vendor and customer writes down every transaction — who bought what, who sold what, and for how much. Everyone can see the notebook, everyone has a copy, and no single person controls it. Once something is written down, it can't be erased. This is essentially how blockchain technology works.

Blockchain is the technology that powers cryptocurrency. It's a digital ledger that records every transaction across thousands of computers worldwide. When you send Bitcoin to a friend, that transaction is verified by computers in the network, grouped with other transactions into a "block," and then permanently added to the "chain" of all previous transactions. Because thousands of computers have identical copies of this record, no single person can fake transactions or spend the same money twice. Your cryptocurrency is stored in a digital wallet, which works like your GCash app. The wallet has a public address (like your email address that others can send money to) and a private key (like a secret PIN that only you should know). When you want to send cryptocurrency, you use your private key to authorize the transaction. The network verifies you actually have the funds, records the transaction on the blockchain, and the recipient receives the money — usually within minutes, anywhere in the world.

This peer-to-peer system is why cryptocurrency matters for Filipinos, especially for remittances. The Philippines receives over ₱2 trillion in remittances yearly from OFWs, but traditional services charge 6-7% in fees and take days to process. Cryptocurrency can move money across borders in minutes for under 1% in fees, potentially saving Filipino families thousands of pesos annually.

Why Filipinos Are Turning to Cryptocurrency

Filipinos are among the world's most active cryptocurrency users, and there are practical reasons why. High inflation erodes the value of peso savings — what costs ₱100 at the palengke today might cost ₱110 next year. While cryptocurrency is volatile and risky, some Filipinos use it as an alternative way to grow their savings or protect against peso devaluation. Remittances are another major driver. Traditional money transfer services charge high fees and require both sender and recipient to visit physical locations. With cryptocurrency, an OFW in Dubai can send money directly to their family's digital wallet in Manila instantly. The family can then convert it to pesos using BSP-licensed platforms like Coins.ph or GCash, often at lower total costs than Western Union or bank wires.

The Bangko Sentral ng Pilipinas has recognized cryptocurrency as a legitimate financial tool since 2017, regulating it as "virtual assets" and requiring exchanges to register as Virtual Asset Service Providers. This regulatory framework gives Filipinos legal protection when using licensed platforms — similar to how your GCash transactions are regulated and protected. Currently, platforms like Coins.ph, PDAX, GCash GCrypto, Maya, UnionBank, and RCBC are BSP-licensed, ensuring they follow anti-money laundering rules and know-your-customer requirements.

Is Cryptocurrency Safe? Risks Every Filipino Should Know

Cryptocurrency can be safe when used properly, but there are real risks you need to understand before investing a single peso. The biggest risk is volatility — cryptocurrency prices can swing wildly. Bitcoin has dropped 50% or more during market crashes, meaning ₱10,000 invested could become ₱5,000 in weeks. Never invest money you can't afford to lose, and never invest your emergency fund or money needed for bills and food. Scams are unfortunately common in the Philippines. You've probably seen Facebook groups promising 100% returns or "investment opportunities" that sound too good to be true. These are almost always scams. Legitimate cryptocurrency doesn't promise guaranteed returns, and real platforms never ask you to recruit friends to earn money. Stick to BSP-licensed platforms only, and never share your wallet private keys or PINs with anyone — not even customer support.

Phishing attacks are another threat. Scammers create fake websites that look like Coins.ph or PDAX to steal your login credentials. Always double-check the website URL before entering your password, and enable two-factor authentication on all your accounts. Think of it like protecting your GCash — you wouldn't give your MPIN to a stranger, so don't give your crypto wallet keys to anyone either. Taxes are often overlooked but important. The Bureau of Internal Revenue considers cryptocurrency gains as taxable income, with rates from 0% to 35% depending on your total income bracket. If your annual crypto transactions exceed ₱500,000, you should report them. While platforms don't automatically report to the BIR yet as of early 2026, it's your responsibility to file correctly and avoid future penalties.

How to Get Started Safely With BSP-Licensed Platforms

The safest way to start with cryptocurrency in the Philippines is through BSP-licensed platforms that allow you to deposit pesos and buy crypto directly. These platforms verify your identity using valid IDs, comply with anti-money laundering laws, and provide local customer support in case something goes wrong. GCash users have the easiest entry through GCrypto, built right into the GCash app. Open your GCash app, tap "Grow," then "GCrypto" to access curated cryptocurrencies like Bitcoin, Ethereum, and Solana. You can start with as little as ₱200, and because your GCash wallet is already connected, deposits are instant and seamless. GCrypto has no explicit trading fee — instead, the cost is built into the buy/sell spread, estimated at around 1.5% to 2.5%. GCrypto is perfect for complete beginners who want to learn without downloading a separate app or going through complicated verification.

Coins.ph remains the most popular standalone platform with over 18 million users. It feels familiar to Filipinos because it handles not just cryptocurrency but also bills payment and mobile load. You can start with just ₱100, making it accessible for students or anyone wanting to test the waters. Deposits through GCash or InstaPay are instant and free, while Coins Pro offers trading fees of just 0.10% to 0.15% (maker/taker), and the simpler Coins Convert feature has no explicit fee but includes a spread in the price. For more serious traders who want advanced features, PDAX offers professional-grade tools while remaining beginner-friendly, with trading fees of 0.40% maker and 0.50% taker and a ₱1,000 minimum purchase. PDAX also offers free PHP withdrawals, a major advantage over competitors. Maya and UnionBank serve customers who prefer crypto services alongside regular banking or mobile wallets, while RCBC offers similar integration for traditional bank customers.

To start, pick one BSP-licensed platform, download the app, and complete full verification using your valid ID and proof of address. Start small — invest only ₱500 or ₱1,000 at first to learn how it works. Bitcoin and stablecoins like USDT are good starting points because they're widely understood and more stable than smaller cryptocurrencies. Never invest more than you can afford to lose completely, and avoid using leverage or margin trading until you have significant experience.

Cryptocurrency is digital money secured by blockchain technology..., offering Filipinos new options for savings, remittances, and financial growth. While it comes with real risks — volatility, scams, and complexity — using BSP-licensed platforms and starting small makes it accessible and relatively safe for beginners.

If you're ready to explore cryptocurrency, download GCash and try GCrypto with ₱200, or get Coins.ph and start with ₱100. Treat it as a learning experience, not a get-rich-quick scheme. Read, ask questions, and never invest money you need for daily expenses.