How to Buy Ethereum in Peru in 5 Simple Steps

Step by Step Guide - How to Buy Ethereum in Peru

Ethereum is the second most popular and influential cryptocurrency after Bitcoin. Lucky for you, we have prepared this section to plug existing information loopholes. This section outlines the basic steps you would have to jump through to buy Ethereum in Peru.

Step 1: Find an Appropriate Platform to Buy Ethereum

It is noteworthy that you can buy Ethereum from any platform, as long as it is regulated. However, you might want to consider a broker if you wish to trade the price gyrations of ETH. Why is that? As earlier discussed, brokers offer CFDs, which merely offer buyers exposure to the actual asset.

Buying CFDs is convenient because you won’t have to spend many hours researching the market for the most secure yet affordable crypto wallet. Also, you can exit a CFD position fast because of the vast liquidity available in the market. Finally, others might prefer CFDs because they can bet on a bull or bear scenario.

Contrariwise, some might want to buy ETH for long-term keeping. In cryptoverse-speak, these kinds of investors are called HODLers. To HODL Ethereum is to keep the ETH tokens for an extended period, and whose aim is to benefit from long-term growth. 

Either way, the right platform must demonstrate its adherence to existing law. This means the platform should have proper licenses from reputable regulators. A regulated platform is safe because you can be sure that you are dealing with a legitimate business.

Step 2: Registration / Create a New Account

Once you have selected the right platform, the next step is to create an account. The registration process is pretty identical across most platforms. However, differences may arise depending on the platform’s regulatory status. 

A typical registration process begins by asking for your name, email address and active phone number. But this information only gets you the account. To activate the account, you will need to provide the platform with further details, such as a photo of your ID document or a utility bill to get to know you better. This process is called the know-your-customer or KYC process. 

A reputable exchange or broker will not proceed without a successful KYC process. The process is critical to prevent the onboarding of unsavory characters. Ultimately, it increases the security of the other users on the platform.

Step 3: Deposit Funds

For an active account to go live, you must deposit some funds. The funds enable you to place purchase orders with the exchanges or buy/sell orders with the broker. Depositing funds is straightforward once you have selected the preferred payment method. First, however, we must mention that each platform supports different payment methods.

Let’s say you elect to transfer funds from your bank account. The first step will entail connecting the bank to the trading platform. Here, you will need to fill a form with information such as the bank’s name and address, your account number, and the BIC code. You will also specify the amount you wish to transfer and then submit the details.

Step 4: Start Trading or Buying Ethereum

The funds will take some time to arrive in your trading account, and the period depends on the payment method used. However, once in, your account is ready for some action.

If your account is with an exchange, you will select the ‘Buy Crypto’ option and navigate to Ethereum. The platform will specify how to pay for the purchase; it could be in Sols or a major currency such as the USD or EUR. Some platforms require that you buy Bitcoin (BTC) first and then use it to purchase Ethereum.

But if your account is with a broker, this is when you start trading. Trading ETH means buying or selling a CFD with ETH price as the underlying asset. You need to navigate to the trading platform, search for ETH and open a deal ticket. Then, specify the size of the order and click ‘BUY’ to go long or ‘SELL’ to go short.

However, it helps to note that some brokers, such as Interactive Brokers offer spot ETH purchases. Similarly, Binance, an exchange, allows trading derivatives. 

Step 5: Optional Steps

Ethereum is a versatile token that is currently in the process of shifting to a Proof of Stake model and supports staking. Therefore, if you purchase the token for HODLing, it could be profitable to join a staking pool, where you will be validating transactions for a small fee. 

For those trading ETH CFDs, it helps to put in place some risk management tools such as stop-loss and take-profit. The tools somehow automate critical steps to prevent unintended losses. You could also hedge your position if you trade derivatives. 

What is the Best Payment Method for Buying Ethereum in Peru?  

An exchange or broker will offer you more than one payment method not because some of them are problematic but because each of them meets specific needs. For example, transactions via credit/debit cards arrive faster in your account than bank transfers. But the bank transfer could be cheaper.

The thing is that your preferences dictate your choice of a payment method. For some of us, speed precedes cost, and others are willing to wait for a week as long as they save every last penny. 

Peru happens to be one of those places where there are many payment methods available for customers. Most platforms support bank transfers (both local and international) and credit/debit cards.

• Buy Ethereum with Cash: Only Bitcoin ATMs are in Peru, so you can buy BTC with cash and use it to buy ETH via peer-to-peer crypto exchanges.

• Buy Ethereum with Credit Card: Enable instant ETH purchases, but sometimes the charges could be too high.

• Buy Ethereum with Bank Transfer: The most secure channel but too slow.

• Buy Ethereum with PayPal: Convenient and fast ETH purchases with a variety of fiat currencies. 

• Buy Ethereum with Bitcoin: Convenient and cheapest payment method, but involves a process that not everyone will enjoy.

Why Buy Ethereum?

Bitcoin came out in the immediate aftermath of the Great Recession, and one of its supposed aims was to create an alternative global financial system. Therefore, one can argue that the initial goal for blockchain was to overhaul finance as we know it. But then came Vitalik Buterin and his colleagues with a completely different vision.

The team’s vision was to create a decentralised world computer that will power all of the existing services at the time. For example, the blockchain network would upend the banking sector by making it permissionless. Developers would build decentralised applications (dApps) for various uses. The dApps would require Ether (ETH) to accomplish their operations.

Although Ethereum is not a world computer yet, the underlying technology has proven useful. Remarkably, the smart contracts have spawned various niches, such as Decentralised Finance (DeFi) and Non-Fungible Tokens (NFTs) ecosystem.

Ethereum has become central to the adoption of blockchain, mainly because most of the altcoins in existence today are built on the network. As such, this is the first blockchain platform to have real-world utility. The popularity led to increased demand for ETH tokens, whose price reached an all-time high of $4,362.35 on May 12, 2021.

Most importantly, Eth2 transitions from a Proof of Work (PoW) system to Proof of Stake (PoS). The issue is that a PoW is energy-intensive hence hugely inefficient. If the transition is successful, Ethereum will enter a new phase of faster and cheaper transactions. This should raise the demand for ETH, possibly, past the current record peak.

So, why should anyone invest in ETH? Ethereum’s future is brighter than ever as per many veteran investors. This is why the token’s price did not fall far below the recent peak, as did Bitcoin and other altcoins. It could be that the market is anticipating a significant price jump, and investors are jostling for the front row seat.

Additionally, Ethereum’s new consensus mechanism will increase the space for ETH staking. Validators on Eth2 will earn up to 20% annual commission for staking, although this will lower to about 4.5% in later years. Simply put, a whole new world of opportunities is awaiting the Ethereum ecosystem, and no one deserves to miss it.

Is it Legal to Buy Ethereum in Peru?

Peru is one of the most pro-cryptocurrency jurisdictions in the world. The country’s interest in the digital currency ecosystem is so keen that Sergio Espinosa, the Financial Intelligence Unit of Peru (UIF) superintendent, said in October 2020 that creating an enabling regulatory framework around cryptocurrency is his country’s “priority.” From the preceding, buying Ethereum in Peru is perfectly legal.

Where Can I Use Ethereum in Peru?

According to Coinmap.org, various businesses accept cryptocurrency in Peru, but almost all prefer Bitcoin. Unfortunately, this means you will have to convert your ETH tokens into BTC before using them. 

Nevertheless, this analysis posted on LinkedIn suggests that the cryptocurrency acceptance rate in Peru is one of the fastest-rising, which implies that businesses could soon accept Ethereum. 

Even though ETH is not a prevalent currency for payment purposes in Peru, the token is commonplace in video games and staking. Quite a number of Peruvians are part of the global Ethereum community working hard to raise adoption levels. There are 3 Bitcoin ATMs installed in Lima, the capital of Peru, from where you can easily buy BTC with cash and exchange it for ETH later.