The Ethereum network is powered by the cryptocurrency called Ethereum (ETH).
The cryptocurrency is massively popular in Mexico, despite government control, and many people have developed an interest in it. So, could you be one of them? If so, continue reading because this guide details how to buy Ethereum in Mexico. We will show you how to choose the ideal platform and how to navigate through it.
You buy actual ETH tokens when speaking about buying Ethereum. This means opening an account with a cryptocurrency exchange and making a purchase order. Usually, investors buy the actual coins to HODL – for long-term holding.
On the other hand, trading Ethereum refers to buying or selling Ethereum CFDs, options, and futures using a broker. The broker creates the Ethereum derivatives and offers them at the price of actual ETH tokens. Therefore, you should use a broker if you intend to speculate on the ETH price changes.
As part of this guide, we searched the market for the best exchange and broker platforms to buy Ethereum in Mexico. Here are the shortlisted platforms:
We know how hectic it could be to navigate the Ethereum market in Mexico, especially because of inadequate information. Luckily, we have prepared this section to make life easy for you.
Your journey into the Mexican Ethereum ecosystem starts with finding the right platform. A platform is appropriate if it satisfies your personal requirements and budget.
For example, you might be looking for a platform that puts you in direct contact with Ethereum sellers, or the platform itself sells Ethereum tokens. In this case, you could be looking for a cryptocurrency exchange.
But what if you just want to trade Ethereum derivatives? Then a cryptocurrency broker is an appropriate platform.
No matter the platform you select, it would be helpful to find out the regulatory status. For example, check to see if the platform has a license and research the licensing authority. This step ensures that you do not put money into a fraudulent business if you buy Dogecoin in Mexico for example..
At the registration window, you will provide your full name and a telephone account or email address. Some platforms are way ahead because they allow new users to sign up using their social media account.
It is always crucial to provide truthful details at the registration window to avoid a lengthy and probably unsuccessful verification process. The verification process, also known as know your customer (KYC) involves the platform asking for supporting documents to ascertain your identity and address. Some of the documents demanded are a copy of your national ID/passport, a recent utility bill, and/or copies of recent bank statements.
A brokerage account requires pre-loading funds for live trading. So, once you jump through the KYC hoop, the next step is to deposit the funds. Thankfully, many platforms in Mexico support several payment methods, and it is doubtful that you won’t find one that suits your preferences.
Each of the payment options offered on the trading platform comes with advantages and disadvantages. Therefore, it is upon you to weigh the pros and cons of each option and settle on the most appropriate payment method.
Unfortunately, financial regulators in the country have installed a range of sanctions on financial institutions in the country regarding crypto-focusing services. As such, some payment methods such as bank transfers might not be available for you in all locations. But payment options such as PayPal and credit cards are available.
Buying Ethereum on the exchange platform is straightforward: you proceed to the trading platform and select Ethereum from the collection of supported cryptocurrencies. Once you have selected the amount of ETH tokens you wish to purchase, proceed to select the currency type for payment, i.e., the peso (MXN), US dollar or euro. Finally, hit ‘BUY’ to complete the process.
On the other hand, broker platforms offer Ethereum derivatives, including futures, CFDs, and options. That is why you will find items such as ETH/MXN, USD/ETH, or even BTC/ETH. Then, depending on the currency type, select the appropriate pair and specify the size of the order. Finally, hit ‘SELL’ or ‘BUY’ to complete the transaction.
However, it would be helpful to know that some platforms offer hybrid services; a broker platform such as eToro might include spot trading services, while an exchange platform such as Binance might include CFDs trading services.
The below steps are optional but will help you in your investment journey.
Different platforms in Mexico offer a wide range of payment options. However, it is worth noting that each payment method is unique in terms of speed, cost and convenience of transactions. Also, some payment methods are not available, either due to government regulations or other reasons.
Ethereum is the blockchain technology that introduced smart contracts. Smart contracts enable the development of applications that support decentralised transactions. For example, you could create an application on the Ethereum blockchain system to facilitate peer-to-peer money transfer.
One of the areas that smart contracts have shown the potential to transform is the banking and financial services. The sector relies on financial institutions to facilitate transactions. But with smart contracts, the institutions can be taken out of the picture.
For example, a bond can be written under a smart contract. When the bond matures, the smart contract will automatically transfer the funds to the bearer’s account without external instigation. Without third-party involvement, the transaction is faster and more transparent.
However, the masses have been slow to adopt the novel technology, probably because of inadequate knowledge. But so far, Ethereum’s stature in global finance is growing due to breakout projects like decentralised finance (DeFi). This growth has also led to increasing demand for Ether (ETH) tokens.
But up to this point, we have barely answered why you should buy Ethereum. Firstly, Ether’s price growth has so far proved that it can rise as expected.
By mid-2020, the DeFi sector was booming, which sparked a rally in the broad cryptocurrency market, and came to a head in May 2021.
The second reason why ETH should appeal to potential investors is that the Ethereum blockchain system has many real-life use cases. So far, the non-fungible tokens (NFT) market and DeFi are the breakout applications, but so many more are in the pipeline. This is possible mainly because of smart contracts.
Therefore, one can safely conclude that the Ethereum blockchain has a more prominent role to play in future industries.
On March 9, 2018, Mexican authorities released a revised Fintech Law. The regulations provided a legal framework for how financial institutions interact with virtual assets, also called cryptocurrencies.
However, the Fintech Law does not recognise virtual assets such as Ethereum as money, even though it classifies them as “representations of value electronically recorded and used among the public as a payment method for any kind of legal acts and whose transfer can only be carried out through electronic means”. Like most countries, the current legal climate for crypto in Mexico is uncertain but cryptocurrencies are not illegal in the country. The current Fintech Law in Mexico includes regulatory sandboxes set up to facilitate the designing of appropriate regulations for the cryptocurrency sector. Find out more about the tax regulations for cryptocurrency in Mexico.
After long hours that added to days of research, we could not find any major brand or retailer that accepts Ethereum payments in Mexico. Furthermore, even several financial institutions were unwilling to facilitate Ethereum-based transactions, citing government discouragements. However, we found that some private individuals are open to payments in Ethereum. Therefore, we concluded that Ethereum is more of an asset currently and will need more time to trickle into daily usage as money.
Despite apparent official hostility towards virtual assets, there is hope among investors that digital money will achieve mainstream acceptance in Mexico in future. For example, the current Fintech Law in Mexico includes regulatory sandboxes set up to facilitate the designing of appropriate regulations for the cryptocurrency sector.
Also, you can use Ethereum at a crypto ATM in Mexico City, and another one in Culiacan, according to Coin ATM Radar. The ATMs accept ETH for BTC, Litecoin (LTC), or cash (Mexican peso or US dollar).