A guide to buying Bitcoin in Venezuela
Buy crypto on Coinmama
Coinmama is a very well respected exchange and supports customers from more than 190 countries and they also have the option to purchase bitcoin and other cryptocurrencies like Ethereum with credit cards. The exchange is very easy to use and in general a really good option for users that are new to Bitcoin and the whole crypto space.
The fees on credit cards are very transparent on Coinmama, but they also have much higher limits than others. So if you are looking to spend more than 2500 USD then Coinmama would be ideal.
Another great exchange to buy Bitcoin on if you are located in Venezuela is LocalBitcoins. They provide a great service and has a ton of different payment options. Which makes it easy to get started with purchasing your first Bitcoins.
Venezuela is one of the world leaders in bitcoin and cryptocurrency adoption. Venezuela has now over a thousand locations which accept cryptocurrency as payment, a multitude of wallets downloaded by the citizens, various teams working on education and adoption activities, and a vast network of digital asset companies and organisations focusing on the market.
Multi-national companies like Burger King have started accepting payments in cryptocurrencies. This is an indicator of the progress of cryptocurrencies toward the mainstream in Venezuela. Though these merchants are less than 1% of the total stores, there has been no country like Venezuela to adopt cryptocurrencies. This shows why Venezuela is relevant for evaluating the global state of cryptocurrency usage and the future of these digital assets.
Four Stages Of Cryptocurrency Adoption
The progressive expansion of cryptocurrency purchases can be categorised into four different stages, which are correlated to the stability of the local currency, where economic slowdown can create strong reasons for people to search for alternative finance options to protect their assets, which creates an entry point for cryptocurrency. The four stages are:
Experts: The first stage of adoption consists of traders and developers, who study the stability of the market and increase the wealth of cryptocurrencies by holding them.
A Safe Haven: Failing economies can create incentives to drive peer to peer cryptocurrency trading. OTCs, FX traders, wealthy individuals and companies drive high-volume transactions, helping in the surge of cryptocurrencies.
P2P Digital Currency: Once the buyers of the early stages acquire cryptocurrencies, they understand the benefits of decentralized digital cash and using it directly for transactions. A financial ecosystem emerges when a sufficient number of users try to use it for everyday transactions, resulting in better awareness and growth.
The Surge: In this stage, cryptocurrencies have achieved their popularity. People trade with these currencies in huge volumes. More developers, investors and business people come into the play.
The Venezuelan Ecosystem
In Venezuela, the stages of the digital cash ecosystem from the adoption cycle had a constant growth for the past couple of years. While the capital control gets most of the attention due to the high volume records of local cryptocurrencies, the peer-to-peer use case has grown steadily and is creating a unique and very interesting ecosystem, which supports the claim of Venezuela for having the most extensive crypto ecosystem globally.
Some of the components that make Venezuela’s ecosystem unique, and world leaders in cryptocurrency include:
- Cryptocurrency mining has existed in Venezuela since the 2010s. Though most of them are small operations, there are records of larger ones.
- Wallet usage growth is massive, with around five hundred thousands signups. Dash wallets grew over 400% in 2019 as a result of massive interest in these digital assets.
- Popular brands are accepting cryptocurrencies for trading commodities, with reputed firms like Burger King accepting the payments in this digital cash.
- Small merchant adoption keeps growing, using cryptocurrency payment for shopping. Peer-to-peer trading platforms shattering records in volume, making Venezuela one
of the largest traders of these digital assets.
- Various Fiat-to-Crypto options are rolled. Local platforms like Cryptobuyer, Cryptoway, Basichange, and government-licensed firms such as Veinte and Amberes are installing ATMs to complement online platforms.
- Global crypto leaders are working on initiatives such as GiveCrypto, Binance meetups happen around the country. These initiatives help in the growth of cryptocurrencies.
- The country rolls out various academic programs and supports crypto media journalists.
Venezuela has issued a new bill on regulating these digital assets. The bill empowers Sunacrip, a national cryptocurrency watchdog, to inspect every crypto-related commercial activity in the country. Sunacrip will be able to control the creation, emission, transfer, commercialisation and exchange of cryptocurrencies within the country. Every miner, wallet provider and trader need to register with Sunacrip, which can penalise them heavily on failure to do so. Mining companies can be inspected and confiscated if they fail to follow the guidelines.
The cryptocurrency ecosystem in Venezuela will be on the rise. The growth of the ecosystem will result in the creation of a unique network where local, and international talent, in addition to increased capital and opportunity to solve their economic concerns.
Bitpanda is the leading crypto exchange in Europe with more than 1 million users. You can trade more than +30 cryptocurrencies, gold, silver and other metals.