Venezuela is one of the countries experiencing severe financial difficulties today, which has been the case for years now. The country continues to suffer from hyperinflation, and its native currency, the bolivar, has become practically worthless. While its government continues to push for the use of its native cryptocurrency, the oil-backed Petro — the people have chosen Bitcoin, instead.
So, if you have decided to start using cryptocurrency and take control over your finances, we can teach you how you can buy Bitcoin in Venezuela in only a few simple steps.
Quick Guide to Buy Bitcoin in Venezuela Today
Choose a platform
Choose a platform — Bitcoin is most commonly bought on one of various crypto exchange platforms, so you should try and find one to use. These platforms are quite numerous, but each of them is different from the previous one, so make your choice carefully. Above all, focus on which payment methods are supported, so that you will know which one to choose based on what payment method you prefer.
Make your initial deposit
We understand that the situation is hard, but you cannot earn with Bitcoin without making an initial deposit. You must first make a deposit, and use that money to make more money with Bitcoin, further down the road. A word of warning, however — you can still lose your money if you make a bad move in crypto, so don’t act in a haste, and make sure that each move you are making can be justified with facts and logic. When you trade crypto, you cannot count on being lucky.
With your account funded, you can start your initial trade or invest your money in Bitcoin and wait for its price to go up. But, also remember that cryptocurrency is a tool that sometimes acts like it has a mind of its own. So, don’t rely on anything but your research, price predictions, and calculations.
Where to Buy Bitcoin in Venezuela in 2021?
If you wish to try and make money with Bitcoin, you have two options — trading or investing. Choosing which of these you wish to engage in will decide which type of platform you are going to use. Buying Bitcoin is best done on exchanges, where you can buy actual BTC coins and store them in a safe place as you wait for the price to grow. Exchanges are typically meant to be used for long-term investments.
On the other hand, if you wish to engage in trading, you are far better off using a broker service. There are several reasons for this. First of all, brokers are connected to multiple exchanges, whereas using a single exchange only grants you access to that single one. Since every exchange has its own prices, using brokers allows you to choose the best price. Next, brokers offer derivatives contracts, like futures, options, and CFDs. This means that you will be investing in contracts, and not actual coins.
This is beneficial as you don’t have to worry about storing and securing your crypto. However, another advantage is that, by using this approach, you trade by making a bet on the price movement of crypto. As long as your prediction is correct, it doesn’t matter whether the price is going up or down — you can still make a profit. Meanwhile, if you buy coins directly, you depend on the price increasing. If it goes down, you will only see losses.
With that said, here are some suggestions about which platforms you might be interested in using.
Step by Step Guide — How to Buy Bitcoin in Venezuela
If you are still uncertain about buying Bitcoin, and your problem lies in the technical details of the process — fear not. The procedure is very simple, and it only revolves around 5 simple steps, which we will now cover in detail, and explain all the little things you should be aware of.
Step 1: Find an Appropriate Platform to Buy Bitcoin
Step number one is simple enough — find the best platform to work with. There is no right or wrong answer here, as long as you make sure that the platform you choose is regulated. Always go for the regulated ones, as this is good for your own protection. Other than that, you need to look for exchanges or broker platforms (depending on whether you want to invest or trade) that support your preferred payment method.
Step 2: Registration / Create a New Account
The second step is to register on the platform you have chosen. Usually, registration will take you less than a minute, as you don’t even have to create a brand new account from scratch, but can instead log in with your email or social media account. Of course, if you want to, you can still make a brand new account — it’s completely up to you. But, once you finish that, you will have to verify your identity by uploading photos of some official government-issued documents. This is the so-called Know Your Customer (KYC) procedure that was introduced to fight issues like money laundering and terrorism financing.
Step 3: Deposit Funds
After setting up and verifying your account, it will be time to get some money into it. As explained before, this will be your initial capital — the money you will use to buy or trade Bitcoin and Bitcoin derivatives. Once again, note that each platform supports different payment methods, so make sure that the one you wish to use is supported.
Provided that it is, simply go to the deposit page, connect your account to your payment method, and deposit some cash. One thing to note here is that you should not deposit money you can’t afford to lose. Losing money does happen a lot in crypto if you aren’t careful, so better to lose a small amount that you can afford to set aside than to lose the money you depended on.
Step 4: Start Trading or Buying Bitcoin
At this point, you are ready to start trading or buying Bitcoin, which is done on the platform’s buy page. However, while we noted previously that exchanges are for buying and selling coins, and brokers are for derivatives — there are exceptions to this rule.
There are some exchanges, such as Binance, that let you trade derivatives, like futures and options, as well. Alternatively, there are also brokers like eToro that allow you to buy coins directly on their platforms. So, if you wish to trade derivatives as your main way to engage with crypto, but you also want to try out buying coins for a bit, platforms like eToro are worth considering. The alternative is also possible, and in that case, do consider using Binance.
Step 5: Optional Steps
There are also a few additional steps that you should consider taking. As the name suggests, these are not obligatory, but are highly recommended. For example, if you are a derivatives trader, you might want to consider making a separate, additional trade to hedge your main Bitcoin investment. Meanwhile, if you have bought coins on an exchange, you shouldn’t leave them on the platform. While this is possible, it is not safe, and it doesn’t make your coins truly yours.
You can solve this easily by creating a separate, private wallet and then transferring the coins to it. Just remember that you will be responsible for their security, so make sure to secure your wallet properly.
What is the Best Payment Method for Buying Bitcoin in Venezuela?
You can buy Bitcoin in Venezuela via multiple different payment methods. However, they all differ from platform to platform, so you need to pick the platform that offers the options you are comfortable with. Of course, there are some methods that are more or less popular, such as:
Buy Bitcoin with Cash — You can buy Bitcoin with cash, but to do that, you would need a Bitcoin ATM. Venezuela started getting Bitcoin ATMs back in 2019, with the first ones being installed in San Antonio del Tachira. You can also find one in Caracas.
Buy Bitcoin with credit card — Credit cards are one of the most popular ways of buying Bitcoin, but keep in mind that they are quite expensive.
Buy Bitcoin with bank transfer — A cheaper alternative to credit cards are bank transfers, although they also take longer to deliver the money.
Buy Bitcoin with crypto — Bitcoin is paired against many other cryptocurrencies on most platforms, so if you already have some other coins, you can buy BTC with them if the exchange you choose has the two paired against one another.
Why Buy Bitcoin?
If you are wondering why people are buying Bitcoin and why you should consider it, there are several reasons. For example, Bitcoin is the first and largest cryptocurrency. As such, it is the most popular one, and its brand is synonymous with the crypto industry itself. It is 100% decentralised, meaning that no group, government, bank, or any such entity is controlling it. It is entirely in the hands of its community.
Many assume it will be the currency of the internet, and perhaps the entire world. These days, people have recognized that BTC is technologically limited for that, but it can still replace gold and become a store of value. If this were to happen, its price — currently slightly below $40,000 — could rise to more than $200,000, with the potential to even rise to half a million or more per coin. So, buying the coin (or a portion of the coin) while it is this “cheap” could mean significant profits if and when the coin becomes “digital gold”.
Is it Legal to Buy Bitcoin in Venezuela?
Bitcoin is legal to purchase, trade, own, and invest in in Venezuela. The country does not recognise it as legal tender, but it also has not made it illegal, so you can’t get in trouble for working with it, as long as you don’t use it for criminal activities. With that said, the country’s government would prefer if people used its native coin, Petro, and it even came up with some schemes to make Petro more attractive and beneficial. Despite this, most crypto users in the country opted to use real, decentralised cryptocurrencies like BTC itself.
Where can I Use Bitcoin in Venezuela?
Bitcoin’s main use in Venezuela is for trading and investing. Since it is not legal tender, the coin cannot be used for buying things locally, although it should still work with online merchants and service providers. Other than that, you can buy it at Bitcoin ATMs and preserve the value of your money, or have it grow as BTC’s price keeps going up.
Our Recommended Best Way to Buy Bitcoin in Venezuela
Buying Bitcoin in Venezuela can be done in a variety of ways, and if you have never come into contact with it, you might want to consider it. The coin really does come with some great advantages and can help those struggling in badly damaged financial systems, such as the people of Venezuela.
With that said, here is our favourite way to buy Bitcoin — the one that we can recommend as the best, according to our research.
Frequently Asked Questions
This depends on the user. Trading requires you to be constantly vigilant, seeking out opportunities with every new news report or development in the crypto world, and reacting quickly to changes. That, of course, means that you will have to spend a lot of time in the market. Investors don’t have to be so alert all the time, as most of them just buy a certain amount, lock it up, and forget about it for years, while waiting for the price to increase.
Bitcoin is one of the safest assets to invest in when it comes to security. However, there is still a risk that its value could drop. Bitcoin is not tied to any real-world asset that would give it value. As a result, its price is going up and down based on supply and demand. Whenever a huge amount emerges for sale, most traders would rush to sell their own coins in fear of them losing value. In doing so, they themselves cause the price to crash further. So, volatility is a problem, but other than that — yes, Bitcoin is very safe.
Yes, it can. In fact, it has been stolen in countless exchange and wallet hacks. All it takes is for someone to get your private keys and break into your wallet, and they can send your funds to their private wallet, usually applying technology that makes the transactions impossible to track. This is why it is important to apply any and all security measures available to you.
Yes, Bitcoin is accepted by quite a few online merchants and service providers these days. Just because your local merchants aren’t accepting BTC payments yet, it doesn’t mean you cannot use it on the internet. You can even use it locally to buy gift cards, and then use those gift cards to purchase local items.
Yes, this is possible using crypto ATMs, and you can also sell it on exchanges and withdraw the funds via your preferred payment method.