The cryptocurrency market has gained popularity in various parts of the world over the past few years. North America remains one of the leading continents in the crypto market, and Mexicans have warmed up to these new investment instruments.
Do you wish to find out how and where to buy cryptocurrency in Mexico? If so, then this is the right guide for you as it will discuss not only the right platforms but also various payment options. We will take you through the entire process of buying cryptocurrencies, focusing our attention on the Mexican cryptocurrency market.
Quick Guide to Buy Cryptocurrency in Mexico Today
Register with a crypto exchange or broker
Choose a cryptocurrency broker or exchange and sign up with them. You will be required to provide an email address, username or mobile number to create an account. ID verification is also necessary after opening your account since the platforms are operating within the purviews of the law.
Fund the trading account
The next step is to select from a range of payment methods such as credit/debit card or bank transfer. Fund the trading account and use the money to buy or trade any of the various cryptocurrencies available on the platform. Keep in mind that there may be deposit limits in place when you first open your account.
There are thousands of cryptocurrencies available for you to buy. However, each platform offers a limited number of coins. Choose the cryptocurrency you wish to buy from the crypto exchange or broker and look for the “Buy (COIN)” option or the appropriate pair. Input the amount of the coin you wish to purchase or the equivalent fiat currency amount and buy the cryptocurrency.
Where to Buy Cryptocurrency in Mexico in 2021?
When buying cryptocurrencies, you can buy from a cryptocurrency exchange or a brokerage platform. There are differences when you buy from either of them. Cryptocurrency exchanges allow you to buy and hold the real coins. This means that you are dealing with the cryptocurrency directly. With exchanges, you get to hold the coins, send them to other people, use them to pay for goods and services and move them to external wallets.
However, that is not the case with cryptocurrency brokers. With a broker, you are investing in crypto CFDs (contract for differences). The brokers grant you exposure to the cryptocurrency without holding the actual coins. This way, you get to enjoy the profits of investing in a cryptocurrency without thinking too much about the security of your coins or other problems.
To make it easy for you, our team of crypto experts has chosen the best exchanges and brokers that sell cryptocurrencies in Mexico.
Step by Step Guide - How to Buy Cryptocurrency in Mexico
It is clear that buying cryptocurrencies can be a tough task for some people, especially those new to the market. To make the crypto buying process easy for you, we have broken down the process into five simple stages.
Step 1: Find an Appropriate Platform to Buy Cryptocurrency
We have hundreds of cryptocurrency exchanges and brokers globally, and many of these platforms are available to Mexican traders and investors. This makes it hard to choose since there are really no best or worst brokers or exchanges. The trading platforms differ in the services and features they offer, and traders make their choices based on those traits.
If you intend to buy cryptocurrencies and hold them as long-term investments, then exchanges are the best platforms for you. However, if you plan to make a quick, hassle-free trade, then you should look to brokers in this scenario.
We always advise readers to go with regulated exchanges or brokers. Although the unregulated platforms might tempt you with features such as low fees, you will not be covered in case the platforms get hacked, or funds are stolen.
Step 2: Registration / Create a New Account
After choosing the best exchange or broker, proceed to open a trading account with them. You can register on any trading platform using an email address or a phone number, depending on what the exchange or broker allows.
After setting up your exchange or brokerage account, you have to complete the Know Your Customer (KYC) process before you can buy cryptocurrencies. The KYC process involves submitting your documents for verification. Some of the required documents include a copy of your photo ID (such as a passport) and also proof of address (such as a bank statement), and a selfie. You might choose to register on more than one exchange or broker).
While it might seem inconvenient for you, the KYC process is to ensure the safety of your funds and data. KYC makes it tough for criminals and fraudsters to launder money or manipulate the crypto market.
Step 3: Deposit Funds
With a fully verified exchange or brokerage account, you can fund your trading account. In Mexico, crypto exchanges and brokers offer a wide range of deposit options, and each one has its advantages and disadvantages. Some of these payment options include bank transfers, credit and debit cards, and even cash payments sometimes (such as P2P).
Ensure you check the available payment options on a crypto exchange or broker before you register. Knowing the available payment options allows you to determine if it is the right platform for you or not.
Step 4: Start Trading or Buying Cryptocurrency
After depositing the funds and once it reflects in your trading account, you can start trading or buying various cryptocurrencies. If you choose a broker, you would buy the cryptocurrencies via derivatives like CFDs or futures. These investment vehicles allow you to speculate on the price of the various cryptocurrencies without holding the underlying assets.
However, if you select a crypto exchange, then you will buy and hold the actual cryptocurrencies. Some of the leading crypto exchanges support the BTC/MXN or ETH/MXN trading pairs allowing you to buy the cryptocurrencies directly using the Mexican Peso.
Some brokers such as eToro allow traders to buy and hodl actual cryptocurrencies, while exchanges like Binance also allow traders to access cryptos via contract features.
Step 5: Optional Steps
Once you have completed these stages and bought your preferred cryptocurrency, there are other optional steps you can take to boost your investment earning. Some of these steps include:
Store in a private wallet: After buying the coins on exchanges, you can move them to private wallets for better security. You can choose hot wallets or cold storage wallets like Trezor and Ledger.
For a coin that supports staking, you can stake them via supported exchanges or wallets to earn interest on your investments.
You can hedge your crypto investment if you are a derivative trader.
If the cryptocurrency supports voting, you can hold and participate in the governance of the network.
What is the Best Payment Method for Buying Cryptocurrency in Mexico?
There are various payment methods available to Mexican traders and investors, and the best one depends on the user’s preference. The payment method you will use depends on your needs and priorities at that time.
In Mexico, virtually all cryptocurrency payment options are available to traders. The most popular ones include:
Buy Cryptocurrency with Cash: You can buy cryptocurrencies anonymously via peer-to-peer exchanges.
Buy Cryptocurrencies with Credit Card: Credit card is the most used option because it is fast and secure. However, it requires higher transaction fees.
Buy Cryptocurrency with Bank Transfer: This method is safe, secure and commands low fees. However, the transaction could take days to be completed.
Buy Cryptocurrency with PayPal: This method is convenient but only available on certain P2P platforms.
Buy Cryptocurrency with Bitcoin: You can buy other cryptocurrencies with Bitcoin.
Why Buy Cryptocurrency?
Buying cryptocurrencies is a personal choice of an investor or trader. However, over the past decade, no financial asset class has experienced massive growth as compared to crypto. Bitcoin was introduced in 2009 and was trading for a few cents. Fast forward a decade later, and its price reached an all-time high of $65,000 earlier this year. The astronomical growth experienced by Bitcoin wasn’t seen in any stock, forex currency, or commodity in the past decade.
By 8 May, 2021, Dogecoin’s price was up by over 6,000% since the start of the year. No other financial asset class can deliver the profits generated by cryptocurrencies. Beyond the price rally experienced at various stages since 2009, cryptocurrencies are solving real-world problems and serving various functions.
Ethereum, one of the leading cryptocurrencies, has seen its blockchain network become the most important. The network houses numerous decentralised applications. The features of the blockchain, such as transparency, speed and scalability, are attracting traditional financial institutions to the industry.
So far, numerous companies are accepting cryptocurrencies as a means of payment. The cryptocurrency market took a giant step earlier this year when El Salvador officially made Bitcoin a legal tender. This is the first time Bitcoin is recognised as a legal tender in any country in the world. With El Salvador’s adoption, some countries such as Paraguay, Argentina and a few others are looking at Bitcoin in a positive light and are working on rolling out favourable regulations.
Hence, when you look at cryptocurrencies, you will see financial assets that deliver excellent profits to investors over time, the technologies behind them have massive real-world usage and currencies that continue to gain adoption from countries, retail and institutional investors.
Is it Legal to Buy Cryptocurrency in Mexico?
Yes, it is legal to buy cryptocurrencies in Mexico. Like most countries, profits earned from cryptocurrency trading and investments are subject to capital gains in Mexico. However, the tax only applies after you have sold the cryptocurrency and earned a profit.
Despite the legality of buying cryptocurrencies in Mexico, we always advise readers to trade or buy from regulated brokers and exchanges. Buying from regulated platforms helps you avoid any potential legal complications that could lead to your loss of funds or personal data. Since the assets are taxable, we recommend keeping an account of your purchases to make it easier for reporting purposes.
Where Can I Use Cryptocurrency in Mexico?
The adoption of cryptocurrencies is growing in Mexico. As such, there are numerous businesses accepting cryptocurrencies like Bitcoin and Ether in Mexico. Some of these places include Tabita Reposteria y Comida Gourmet, Librerias Gandhi, El Diablo y la Sandia, India Gate, Rearquitectura, Mobla, Fantastico Comics, Vallarta.Photo and more.
There are Bitcoin ATMs in twelve locations in Mexico. Four in Mexico City, Tijuana (3), Culiacán (2), Guadalajara (1), Monterrey (1) and Santiago de Querétaro (1).
Our Recommended Best Way to Buy Cryptocurrency in Mexico
We have conducted a lot of research to present you with an extensive list of some of the best cryptocurrency platforms to buy cryptos in Mexico. Below is our choice for the most secure, convenient and reliable way to buy cryptocurrency in Mexico.
Frequently Asked Questions
Yes, financial education is very important when it comes to trading and investment. Ensure you learn as much as possible about a cryptocurrency project before you invest.
We didn’t find any cryptocurrency exchange currently supporting PayPal deposits in Mexico.
Mexicans can buy cryptocurrencies from crypto trading platforms. Regulatory agencies in the country monitor and manage the activities of the cryptocurrency market.
If you are new to the market, you can use either exchanges or brokers. The choice depends on your investment goal. If you wish to deal with the actual coins and benefit from holding, storing or sending them to others, you can use exchanges. However, if you are only interested in the price performance and don’t want to be saddled with storing the coin, brokers are your best option.
Cryptocurrencies are safe as long as you stick to using regulated platforms. The regulated exchanges and brokers offer the needed security to ensure your funds and personal data remain safe always.