Colombia is progressively embracing cryptocurrencies and is in the process of establishing a legal framework to facilitate its trade in the nation. Crypto operators are permitted to provide services as long as they meet the SFC’s requirements. Using the precise information given in this post, you may know how to buy Bitcoin in Colombia now.
How To Buy Bitcoin In Colombia
Step 1. Create A Wallet
While frequent Bitcoin traders keep their funds in exchange-provided online wallets, it is always a good idea to migrate your money to an external wallet. You can store your bitcoin on either a hardware wallet or software wallet.
- Hardware wallets – These cryptocurrency wallets take the shape of tiny USB-sized hardware devices that can store Bitcoin and other digital assets offline. You may even link them to the internet and transfer cash with ease.
- Software wallets – These are available as software applications that run on laptops, desktop computers, and mobile phones and are compatible with all popular operating systems such as Windows, iOS, and Android. Because of their continual internet access, they are a form of hot wallet and are vulnerable to hacker efforts.
Step 2: Select An Exchange
In Colombia, you may select from a variety of local and international cryptocurrency exchanges. However, they all vary in terms of cost structure, security measures, user interfaces, accessible trading pairs, regulatory aspects, customer support, and payment choices. Make sure that the site you choose is well-regulated and approved by a reputable body. This ensures the security of your payments.
Step 3: Select Your Payment Options
Your payment option on a crypto exchange will be determined by several criteria, including availability, speed, cost, and convenience. Most Colombian crypto exchanges accept credit cards, debit cards, bank transfers, and PayPal to purchase Bitcoin. Each payment method has its own set of advantages and disadvantages. Bank transfers, for example, are inexpensive but take longer to execute, while credit/debit card transactions are quick but cost more.
Step 4: Place A BTC Purchase Order
It is simple to place an order to purchase Bitcoin on a cryptocurrency exchange.
- Simply pick the appropriate trading pair for your needs, such as BTC/COP, BTC/USD, BTC/ETH, or BTC/XRP
- Evaluate the current exchange rate
- Input the amount of BTC you want to purchase
- Then click the ‘Buy’ button to complete the transaction.
You may purchase Bitcoin quickly at the current market rate with a ‘Market Order,’ or at a rate you choose with a ‘Limit Order.’
Step 5: Keeping Your Bitcoin Safely In A Wallet
What If I Want To Buy Bitcoin In Colombia Using Cash?
Bitcoin traders who trade often want to retain their BTC in exchange wallets to assure their immediate access to regular trading demands. However, long-term investors sometimes move their bought BTC from the exchange to an external wallet. This transfer is possible by utilizing the withdrawal option on the exchange platform’s dashboard. You’re done when you enter the amount of BTC to be sent and the recipient’s wallet address. While it’s preferable for security reasons to shift BTC from an exchange to an independent crypto wallet, doing so is optional and fully up to you.
In Colombia, many individuals choose to purchase Bitcoin using cash. This may be done through any of the 49 Bitcoin ATMs located around the nation or via P2P trading services that allow cash deposits. We want to emphasize that dealing with unknown platforms for Bitcoin cash purchases can be extremely risky.
There are various Peer to Peer (P2P) exchanges that take cash deposits and keep monies in an escrow account around the nation. The monies are released only if both parties confirm the Bitcoin transaction (buyer and seller). It is usually preferable to purchase from a regulated gateway.
All crypto-related enterprises in Colombia must follow the standards established by the Financial Superintendence of Colombia, one of Colombia’s primary financial authorities (SFC). In a new step to build a regulated environment for cryptocurrency trading in the nation, the SFC launched a crypto-asset transactions pilot program in 2021.
According to this initiative, several of Colombia’s most renowned banks are collaborating with the country’s largest crypto exchanges within a freshly established regulatory sandbox for a one-year trial period. The move is seen to be a positive one that would result in a more transparent crypto trading environment for everybody.
Best Cryptocurrency Exchanges In Colombia
Coinmama is a popular cryptocurrency exchange with strict security measures and reliable services. It features a simple platform with an excellent user experience. We suggest it to all traders because of its user-friendly design.
Coinmama provides a diverse asset portfolio that includes prominent cryptocurrencies. When compared to other exchanges, its costs are higher than the industry average. Coinmama is an excellent exchange for traders who value simplicity and strong security.
Bit2Me is a highly regulated cryptocurrency exchange headquartered in Alicante, Spain. Bit2Me is among a small set of cryptocurrency exchanges that provide FDIC insurance for up to €250,000 via partnerships with Spain’s top banks, including ING Direct, Abanca, Caja Popular, and Bankinter.
Bit2Me accepts over 70 cryptocurrencies, including Bitcoin, Bitcoin Cash, Dash, Ethereum, and Litecoin. It supports fiat-to-crypto conversions, making it suitable for beginning investors wanting to acquire their first cryptocurrency, and assets are held offline in cold storage for further protection. As a new Bit2Me customer, you will get a €5 bonus following your first purchase, and you may earn up to $1,000 via its referral program by recommending friends and relatives.
Binance features a large variety of coins and a reasonable cost structure. Professional order types and sophisticated tools are available to high-volume crypto aficionados.
This exchange offers appealing account features such as OTC trading and prizes. Traders may earn up to 10% for keeping certain currencies over time. Binance is not recommended for beginning traders.
eToro is a well-known online broker that provides exchange services. It provides a strong exchange, the eToroX, as well as in-house e-wallet storage. eToro’s systems are safe, with easy UI and professional copy trading tools.
Premium tools and features are available on this exchange. It provides margin trading, APIs, and USD fiat deposits. eToro is a trustworthy broker with top-tier licenses and a solid track record. It offers exceptional customer assistance in a variety of languages.
Coinbase is a cryptocurrency exchange based in the United States that was created in 2012. It is based in San Francisco and is one of the world’s oldest cryptocurrency exchanges. It is also the world’s second-largest cryptocurrency exchange, behind Binance.
Coinbase was created to be one of the simplest exchanges to purchase, sell, and exchange cryptocurrencies, and it caters to both ordinary investors and companies and institutions. The sign-up procedure is simple, and after you’ve created an account, you’ll have access to your own online wallet.
Coinbase initially supported just Bitcoin, but it currently accepts over 100 of the most popular cryptocurrencies, including Bitcoin, Bitcoin Cash, Cardano, Ethereum, and Litecoin. You will get a $10 incentive as a new member, and trading costs vary from $0.99 to $2.99 for transactions under $200 and from 1.49% to 3.99% for deals exceeding $200.
Kraken is a fantastic cryptocurrency exchange for Bitcoin enthusiasts. This exchange is reliable, with excellent safety precautions and regulations. It has a strong track record in the sector and is a popular option for experienced traders.
Kraken provides a proprietary platform via which customers may invest in digital currency. It offers a variety of order kinds, learning aids, and research resources. All transactions are made easier with the fast purchase function. Kraken provides high-net-worth customers with management services.
Frequently Asked Questions
While most trading platforms accept major international fiat currencies such as USD, GBP, and EUR, local platforms also allow for quick Colombian Peso deposits. However, keep in mind that some services may subsequently change your deposited COP into USD or another stablecoin, such as USDT, for easier trading. However, while doing so, they may also take current currency rates into account. Despite their insignificance, these fees must be incorporated into your entire Bitcoin investment.
The pace of mining is determined by the kind of Bitcoin mining gear used. The average time to generate one Bitcoin is roughly ten minutes. However, this only applies to how sophisticated the equipment is.
Yes, it does. Bit2Me may also be used to sell and swap Bitcoin and other cryptocurrencies such as Ethereum, Litecoin, Dash, Bitcoin Cash, and others.
Binance is better suited to users knowledgeable with cryptocurrency terminology and investment alternatives, while Coinbase is designed for quick and straightforward trading. Both exchanges provide mobile applications with varied features.
Binance, Bitfinex, MicroStrategy, and another account whose identity is unknown are the five addresses with the most bitcoin. These five addresses possess about 778,000 bitcoins in total. The exchange addresses reflect the assets of a large number of individual investors who do not have their own keys.