Bitcoin sold at a premium price in Venezuela

Bitcoin sold at a premium price in Venezuela

by | Jan 6, 2020 | News

The reality is that Venezuela is poor now but Bitcoin sold at a premium price in Venezuela. WHY?

The prices for cryptocurrencies vary for different nations. The ‘advertised’ price is often an average of all the prices available on exchanges. At the moment, the demand for Bitcoin in Venezuela seems to be increasing significantly, and this can push the price of one BTC into a five-digit number.

At the moment, most people from all over the world know that the financial situation in Venezuela isn’t at its best. Hyperinflation has plagued the nation for years, and things continue to get even worse. There’s little to nothing the authorities and central bank can do in order to block the fiscal onslaught.

What are the main issues in Venezuela?

Firstly, president Maduro introduced a nationwide cryptocurrency some time ago. Since day one, there were lots of uncomfortable questions concerning this specific venture. Because Venezuela doesn’t have any more oil reserves to back up the Petro, there isn’t any actual use or need for this federal cryptocurrency.

Bitcoin sold at a premium price in Venezuela

Prices for services and products are still skyrocketing virtually daily while the national fiat currency devalues even farther. For all, the only solution would be to attempt to enhance their financial resources. Bitcoin is now of fantastic interest in the nation, and that trend isn’t slowing down.

In a state where digital and physical money is losing worth frequently, the requirement for other assets will become more evident. Venezuela is good example in this situation and Bitcoin is one such asset. The nation has witnessed a lot of spikes of BTC trading volume via peer-reviewed platforms like LocalBitcoins.

What’s even more notable is that the price people are prepared to pay for 1 Bitcoin.

Given the current international price of $7,560, an individual from Venezuela would be expected to pay a premium price in Venezuela.  This isn’t something most are willing to believe, but when it comes to Venezuela, the difference between this international price and the one available locally can be steep.

To understand the difference, consider the price of 1 BTC in Venezuela, which is currently near $9,500. That’s around a $2,000 extra fee to just escape the Venezuelan bolivar. It is not the first time that prices in Venezuela spike, as Venezuela has consistently had greater prices for BTC.

Why is Bitcoin sold at a premium price in Venezuela?

At the current rate of inflation that Venezuela is suffering from, this digital currency can’t be bought via a bank account, or card, because of the financial situation. The desire to escape inflation and buy something which resided outside of this system builds up the demand for Bitcoin. And when the acquisition is impeded by the very system, then is when the scarcity appears.

Venezuela is facing hard times, and its people are willing to put their last money of anything else than the Venezuelan pesos. Foreign fiat currencies such as the US dollar is in the same situation as Bitcoin: Hard to get and sold at a premium price.

For the rest of the world, these prices don’t apply, and we will have to wait for a bigger demand from all over the world the get that price up again.

The best cryptocurrency exchanges for beginners (updated 2020)

The best cryptocurrency exchanges for beginners (updated 2020)

by | Jan 10, 2019 | Cryptocurrency, News

Beginner exchanges are exchanges that offer a simple way to buy bitcoin and other cryptocurrencies, with as little confusing jargon and setup time as possible. Here are 6 cryptocurrency exchanges that are fairly easy to use by a new cryptocurrency investor.

Coinbase

Coinbase is one of the best options for a new crypto investor. Coinbase is the best-known cryptocurrency exchange in the US. It is the simplest and easiest on-ramp for crypto beginners.

Coinbase is the most trusted place for all things crypto.

It allows you to deposit fiat and crypto, offers a small variety of crypto (Bitcoin and Ethereum included) and has never been hacked before! As for security, you can activate the two-factor authentification and it is available in 100+ countries around the world (January 2020).

coinbase best cryptocurrency exchange

As any entity operating with fiat, there will be some fees, especially for deposing fiat. Coinbase Fees vary based on location and amount.

The user interface is intuitive, and the design is clean and simple. You can link up your bank account or pay with a card. There’s also a deep library of guides and explainers for newcomers.

Coinbase has a limited choice of cryptocurrency options to keep things simple. However, they consider the addition of more altcoins.

As for security, Coinbase stores 98% of customer funds in cold storage, in safe deposit boxes and vaults around the world, making it relatively secure. The remaining 2% is insured in case of hacks.

Lastly, there’s a handy mobile app to buy and sell cryptocurrency on the go.

Get started on Coinbase.

ShapeShift

Shapeshift is a crypto-only exchange. You can’t buy cryptocurrency with dollars or euros. You can only trade between cryptocurrencies. However, due to its simplicity, we still recommend it for beginners.

The crypto offer is vast, and you can trade anything for anything and it is available all over the world. Make sure to switch on the two-factor authentification, in case of a future security breach. The exchange rate shown is exactly what you’ll receive, minus only the “miner fee.” There is no exchange fee, or service fee.

Shapeshift best cryptocurrency exchange

ShapeShift allows you to transfer currency between addresses of your choosing, rather than between accounts on its platform. It means ShapeShift doesn’t hold any customer deposits, making it relatively safe.

ShapeShift has been hacked three times, which all occurred in the same month due to internal sabotage. The exchange was extremely transparent in what happened over the hack, with the CEO going so far as to write a blow-by-blow explanation of what exactly happened.

Get started on ShapeShift.

Gemini

Gemini was founded by the Winklevoss Twins. It’s a US-based exchange noted for being a licensed platform (Regulated by NYSDFS). Gemini gained headlines in 2019 by announcing full insurance coverage for funds on its exchange and in custody.

We believe that crypto investors deserve the same protections as investors in other asset classes, so we’ve built a rules-based marketplace with security at its core.

They operate in all U.S. states except Hawaii. Other countries in which they operate are Canada, Hong Kong, Singapore, South Korea and the U.K. Gemini has never been hacked before and the few selected trading pairs are perfect to start your journey as a crypto investor.

gemini best cryptocurrency exchange

Gemini and the Winklevoss Twins pride themselves on being fully compliant and working within existing regulations. As such, there’s a decent amount of safety from fraud and insurance coverage on this exchange. Of course, that comes at a cost: handing over a lot of personal information.

Gemini offers a decent chunk of volume, though few trading pairs compared to other exchanges. Security wise, aside from the standard 2FA, withdrawal address whitelisting is a welcome sight.

The Gemini app is also slick and easy-to-use for beginners.

Get started on Gemini.

Changelly

Changelly is a crypto exchange similar to ShapeShift. It is address-to-address so Changelly never holds your funds. You can exchange crypto to crypto or fiat to crypto. A vast number of trading pairs are available.

Changelly is a cryptocurrency exchange with the most favorable rates and the fairest terms.
Your exchange has never been so smooth.

Changelly accepts users from any country in the world. As well, they will accept payments in any currency, but it will be converted to either the Euro or USD. They have never been hacked before and it supports two-factor authentification. There is a flat fee of 0.25% for each transaction made via the service.

Changelly best cryptocurrency exchange

There’s a simple frontend for buying bitcoin and converting it to whatever cryptocurrency you would like. Much like ShapeShift, Changelly transfers happen between addresses you own, rather than between accounts that the exchange controls.

It’s super fast and efficient. There’s a mobile app too for making transactions on the go.

Get started on Changelly.

Luno

Luno offers a great platform for African and European traders looking to get started. Alongside their exchange, Luno offers a wallet service with a companion mobile app. The exchange has been around since 2013 and has never been hacked, giving it a fairly solid reputation for security.

Luno makes it safe and easy to buy, store and learn about cryptocurrencies. Upgrade your money today.

Luno supports fiat/crypto exchanges on a few selected pair, which will be fairly easy to use by a new crypto enthusiast. They have never been hacked before and the platform supports two-factor authentification. Fees Maker / Taker. Makers fees are a flat 0% and takers fee range from 0.20% to 1.0%.

luno best cryptocurrency exchange

It’s designed to be as simple as possible, including an “instant buy” feature.

Get started on Luno.

Coinmama

Coinmama is a good choice for those looking to buy crypto using a credit card or other fiat sources. Coinmama is a broker so you’re buying directly from the company itself which makes transactions fast.

Trusted by over 1,800,000 people across 188 countries since 2013

However, there are some things to be aware of. Coinmama is “buy only” so you cannot sell cryptocurrencies on the platform. There is also no wallet feature on the exchange, so you need to withdraw directly to a wallet. This is no bad thing as keeping your funds on an exchange is risky, but you will need a wallet set up first.

Unfortunately, Coinmama’s simplicity is offset by the incredibly high fees charged for every transaction. Coinmama’s market rate is based on the XBX + 2%. In addition, there is a commission fee of up to 3.90%.  For credit/debit card transactions, there is an additional 5.00% processing fee. This fee will be added after choosing your method of payment.

Get started on Coinmama.

We hope you have found the best cryptocurrency exchange that works for you. And if you ever decide you are serious about the cryptocurrency world, then remember there are ways to earn free cryptocurrency and Bitcoins.