Ethereum is an open-source blockchain platform famous for smart contracts. The smart contracts power decentralised applications (dApps), which use Ether (ETH) to facilitate on-platform transactions. Most of the dApps have grown into successful projects with the potential to generate greater value in the future. For this reason, demand for ETH has also been growing.
Additionally, Ethereum is also used as a currency in Venezuela, where paper money is too volatile. So, this guide aims to show you how to buy Ethereum in Venezuela and points you to the best platforms available.
Venezuela is a country experiencing a lot of hyperinflation. Since 2014, inflation numbers in the country have been getting weirder by the day, reaching 1,000,000% in 2018. As such, many Venezuelans have been looking for a way out of the miserable economy.
Interestingly, the way out seems to be cryptocurrency. According to a Chainalysis report, cryptocurrency adoption in Venezuela is the third-largest in the world. But where do you buy Ethereum in Venezuela?
Two platforms offer access to Ethereum in Venezuela; brokers and exchanges. Cryptocurrency exchanges are akin to a market in which you purchase digital currency for cash or other tokens.
The platform takes your money in exchange for the delivery of ETH coins. However, you need a wallet to store the coins, although some exchanges can keep them for you. But if you want to take complete control of the assets, you might want to obtain a private cryptocurrency wallet.
Cryptocurrency brokers are nothing like exchanges. Instead of delivering actual ETH coins into your wallet, the platforms offer Ethereum derivatives, including options, CFDs, and futures. Because CFDs trading does not entail dealing with actual ETH coins, crypto wallets are not required.
Our research team has identified some of the best Venezuelan crypto exchange and broker platforms available and have prepared the following list for your benefit.
We know that cryptocurrency is a popular item in Venezuela, but only a few individuals really know how to navigate the ecosystem. To correct this, we have outlined five basic steps you need to follow to buy Ethereum in Venezuela.
We mentioned earlier that you could buy Ethereum in Venezuela through an exchange or broker platform. However, we should add that the choice of platform depends on your personal preferences.
For example, an exchange platform is good for you if you are a ‘HODLer.’ A HODLer buys Ethereum for long-term keeping and will only sell when the market price is significantly higher than the buying price.
On the other hand, a broker platform is ideal for short-term traders. These are investors who do not wish to remain exposed to Ethereum for long. Moreover, Ethereum CFDs are reasonable for the investors because one can exit the market within minutes.
However, be advised that the best platforms have relevant certifications from reputable regulators. Always use regulated platforms to avoid fraud.
All regulated platforms must know who they are dealing with for them to adhere to Know Your Customer (KYC), Anti-Money Laundering (AML) laws and other regulations.
To create an account, open your web browser and go to the preferred broker or exchange. Then, open the ‘Create an account’ page and navigate to the registration box on the website. A typical registration box has spaces for full name, email address and mobile number.
After you submit the details, the platform will reach out for verification documents. The verification process takes some time, and it involves uploading documents for proof of address and identity. In addition, it is necessary to ensure the trading platforms do not provide a safe haven for criminal elements.
The account setup process is complete once you pass the KYC phase. After that, however, the account can only trade if it has sufficient funds. Thankfully, depositing funds is straightforward, and all you need is an active bank account.
Crypto trading platforms in Venezuela accept a range of payment methods, although the list varies with each vendor. Some of the supported options include PayPal and credit/debit cards.
Trading is usually done on broker platforms while buying is primarily done on exchange platforms. However, brokers such as eToro allow spot Ethereum purchases, and exchanges such as Binance allow Ethereum derivatives trading.
To start trading, find the ‘Trade’ tab on the preferred platform. On exchanges, select the “Buy” button and place your order.
After you have opened the long or short position, the next step is hedging. Hedging entails protecting the primary position from unanticipated negative moves in the market by using derivatives.
You will also need a private wallet to store the ETH tokens if you intend to ‘HODL.’
Each trading platform in Venezuela has a list of all the accepted payment methods. As such, you shouldn’t be surprised to find different payment options on different trading platforms.
However, cash rules in Venezuela, which means credit cards will not be ideal in some places.
Buy Ethereum with Cash: Only possible if you buy Bitcoin (BTC) at an ATM first or through peer-to-peer exchanges.
Buy Ethereum with Credit Card: Few exchanges and brokers support credit card payments. For those that do, this payment channel enables instant ETH purchases but using credit cards is an expensive method.
Buy Ethereum with Bank Transfer: By far the most popular but slower than all the other options.
Buy Ethereum with PayPal: Enables fast and convenient payments, but some transactions might delay for too long for security checks.
Buy Ethereum with Bitcoin: Few people use this option because of the complexity involved. However, for those who do, they experience convenient, cheap, and anonymous transactions.
Venezuela has been under US sanctions for over 15 years. The sanctions target individuals and specific companies such as Petróleos de Venezuela, SA, the national oil company, and more. As a result, the country’s economy has been in a downward spiral for a lack of good trade.
So far, the Venezuelan economy has suffered a lot. For example, low oil prices affected the country’s income because the hydrocarbons make up the lion’s share of foreign income earners.
One of the most significant effects of the economic downturn is the depreciation of the bolivar. Over the past year alone, the bolivar (VES) declined 1,443% against the US dollar.
Venezuelan bolivar against the USD
Ethereum price rose 721% in the same period, even touching the all-time high price of $4,362.35 on May 12, 2021. Therefore, those lucky enough to convert their bolivars into ETH in July 2020 are happy today.
However, the weakness of the bolivar is not the only reason to buy Ethereum. The cryptocurrency is backed by a brilliant technology that has shown the potential to change the world as we know it.
Ethereum is a unique blockchain concept that was pioneered to fill the gaps left by Bitcoin. Specifically, smart contracts allow developers to create applications on top of the Ethereum blockchain in a trustless environment. This concept aims to achieve fast transaction speeds, better reliability, and affordability.
Many Ethereum-based cryptocurrencies are in existence today, each focused on a particular problem in society. For example, Ethereum’s ERC-721 architecture is central to the non-fungible tokens (NFTs) market.
As more such applications arise, Ethereum will continue to grow in value in the future because of increased demand.
Neither buying Ethereum nor trading in the token are, in themselves, illegal in Venezuela. This is because no law prohibits the token. However, there isn’t a cryptocurrency law that gives direction to the market either. The only thing we can be sure about is that the government has a positive attitude towards cryptocurrency. The country has also launched the Petro in 2017. Petro is an oil-backed stablecoin.
Cryptocurrency is widespread in Venezuela, but there are inadequate official records to inform us where one can use the coins. During an address to the Venezuelan parliament on September 29, 2020, President Maduro hinted at using cryptocurrency “in both domestic and global trade, as part of efforts to neutralise crippling US economic sanctions”.
Also, you can use Ethereum at the only Bitcoin ATM in Venezuela, located in Caracas, according to Coin ATM Radar. The ATM allows customers to convert ETH to BTC or cash to BTC.