Peredo was born and grew up in Trinidad in Beni Department in northern Bolivia, and was strongly influenced by his older brothers who helped found the Bolivian Communist Party and were leaders in guerrilla movements. After receiving his initial medical training Peredo left the profession and joined the Ñancahuazú Guerrilla movement of Che Guevara, known as the National Liberation Army (ELN). However, because of the need for medical services, Peredo left to attend Patrice Lumumba University in Moscow where he received advanced medical training as well as ideological training. Upon his return to Bolivia he became one of the leaders of the movement. After Che Guevara was killed, Peredo was among those few who managed to escape to Chile. In November 1970, Salvador Allende, after he assumed the presidency of Chile, pardoned Peredo, Mario Suarez and the other survivors.