First, what is the exchange rate?
The exchange rate indicates how many Mexican pesos you need to buy one US dollar.
For example:
Today:1 USD = $18 MXN
One month later:1 USD = $20 MXN
That means that the dollar is now worth more pesos.
What happens if the dollar rises?
Imagine that you have100 digital dollars (USDC).
When you bought them:
1 USD = $18 MXN
Your savings were approximately equivalent to:
$1,800 pesos.
Now imagine that the exchange rate changes to:
1 USD = $20 MXN
Yourself100 USDCNow they are approximately equivalent to:
$2,000 pesos.
You don't have any more dollars.
What changed was the value of those dollars measured in Mexican pesos.
What if the dollar goes down?
The opposite can also happen.
If the exchange rate falls from:
$20 MXN per dollar
to
$18 MXN per dollar
Your digital dollars will remain exactly the same.
What will change is how many pesos you would receive if you decided to convert them again.
So... do I lose money?
Not necessarily.
Your digital dollars still represent the same amount of dollars.
What changes is their value when you express them in another currency, such as the Mexican peso.
That is why many people use digital dollars as a way to keep part of their savings tied to the dollar.
Why do some people do this?
Because the exchange rate changes constantly.
In some periods the weight becomes stronger.
In others, the dollar gains value against the peso.
Since no one can predict these movements, some people prefer to diversify and keep part of their savings in each currency.
A simple example
Imagine that you have:
$10,000 MXNin an account.
The dollar is worth$20 MXN.
With that money you buy approximately500 digital dollars.
If months later the dollar is worth$22 MXN, those same500 dollarswould be approximately equivalent to$11,000 MXN.
If, on the other hand, the dollar falls to$19 MXN, those500 dollarswould be approximately equivalent to$9,500 MXN.
It is important to remember that this is just an example to understand how the exchange rate works.
Does that mean it will always go up?
No.
No one can guarantee how the dollar will move.
The exchange rate can rise, fall or remain stable.
That is why it is not advisable to make financial decisions based solely on expectations about the market.
What do many people do?
Instead of trying to guess when to buy dollars, many people prefer to do it little by little.
For example:
$250 MXN every week.
$500 MXN every month.
$1,000 MXN every fortnight.
This reduces the impact of buying everything at once.
👉Schedule your purchase and save recurrently in digital dollars and Bitcoin
And what does Bitsave have to do with it?
With Bitsave you can easily buy digital dollars and manage your savings from a single application.
Additionally you can:
start from small amounts
schedule automatic purchases
remove when you need it
save constantly
👉How to buy digital dollars on Bitsave using SPEI
Conclusion
When the exchange rate changes,it does not change the amount of digital dollars you have.
What changes is how many pesos are equivalent to those dollars at that moment.
That is why many people use digital dollars as a way to diversify their savings and keep a part of their assets linked to the dollar.
Like any asset, the exchange rate can move in both directions, so it is always important to make informed decisions and think about your financial goals.
You may also be interested
References
Bank of Mexico – FIX exchange rate
https://www.banxico.org.mxFederal Reserve – U.S. Dollar Information
https://www.federalreserve.govInvestopedia – Exchange Rate
https://www.investopedia.com