Trinidad And Tobago's Bitcoin Investment Strategy

Bitcoin is the world's first cryptocurrency and is one of the most sought-after financial assets by international investors. In Trinidad and Tobago, there are several ways to buy and sell Bitcoin. However, compared to the rest of the Caribbean, Trinidad and Tobago is far behind in its implementation of digital currency. While it is legal for citizens to buy, store and sell Bitcoin, it is neither regulated nor supervised by the government.

Trinidad and Tobago's stance on Bitcoin

Bitcoin is the world's first cryptocurrency and one of the most sought-after financial assets by international investors. While it is not recognised as legal tender in Trinidad and Tobago, it is legal for citizens to buy, store and sell it. The Central Bank of Trinidad and Tobago has clarified that cryptocurrencies are neither regulated nor supervised by the government.

Buying Bitcoin in Trinidad and Tobago

There are several trusted online cryptocurrency exchanges available in Trinidad and Tobago, including Binance, Kraken and OKX. These platforms allow users to buy, sell and trade Bitcoin and other cryptocurrencies. The process of signing up and buying Bitcoin is relatively straightforward and usually takes less than 10 minutes to set up. Users will need to complete a Know Your Customer (KYC) verification process, which includes providing proof of identity and address.

Once the account is set up, users can deposit funds using various payment methods, including credit/debit cards and bank transfers. It's important to note that users don't need to buy a full Bitcoin, as most exchanges allow the purchase of just a few dollars' worth.

Bitcoin as Currency

As a decentralised currency, Bitcoin is not controlled by any single entity, such as a central bank or corporation. It can be used to purchase goods and services, as long as the vendor accepts it as payment. Some local restaurants and e-commerce websites accept Bitcoin, and it can also be used to pay for certain goods and services online, such as topping up a Microsoft account or buying gift cards.

Investing in Bitcoin

Due to its massive rise in value, Bitcoin has attracted a lot of attention as a serious player in the world of finance. It can be purchased as a long-term investment, with some people buying and holding onto it, hoping for future profits as they believe it will become more widely accepted. Its value has been extremely volatile, with periods of stability followed by sharp increases and decreases.

Bitcoin Wallets

After purchasing Bitcoin, it is recommended to withdraw it from the exchange to a personal non-custodial wallet for security, privacy and full control. There are various types of crypto wallets available, from hardware wallets that look like USB sticks to mobile apps like Binance Wallet.

Trading Bitcoin

There are two general ways to invest in Bitcoin: buying real Bitcoin or investing in Bitcoin through CFDs (Contract for Differences, a financial derivative product). The main difference is that with CFDs, investors do not own the cryptocurrency but speculate on its short-term price.

Tips for Crypto Traders

Crypto trading carries risks, and successful traders use security measures to increase the probability of making a profit. This includes minimising trading platform commissions and operating expenses, using Stop Loss orders, and analysing price swings. It is also important to develop an investment strategy and stick to it, rather than making emotional trading decisions.

Bitcoin's Future in Trinidad and Tobago

While Bitcoin and other cryptocurrencies are not widely accepted or regulated in Trinidad and Tobago, their popularity is growing. The country's Central Bank has expressed interest in researching and potentially creating its own central bank digital currency (CBDC). This indicates a shift towards exploring the feasibility and benefits of digital currencies, which could shape the future of finance in the country.

How to buy Bitcoin in Trinidad and Tobago

There are several ways to buy Bitcoin in Trinidad and Tobago, and the process is simple and safe. Here is a step-by-step guide on how to get started:

Step 1: Choose a Cryptocurrency Exchange

Firstly, you will need to select a cryptocurrency exchange that operates in Trinidad and Tobago. There are several trusted exchanges available, including:

• Binance: the most popular exchange in Trinidad and Tobago, offering a wide range of cryptocurrencies, low trading fees, and multiple deposit methods.
• Kraken: one of the "big three" cryptocurrency exchanges, alongside Coinbase and Binance, known for its security and fiat-to-crypto trading.
• OKX: a leading exchange with a user-friendly interface, low fees, and deep liquidity, catering to both novice and experienced traders.
• Changelly: offers a smooth and fast purchasing process with a variety of payment methods and quick-to-access features.
• Pursa: a secure platform that allows users to buy, sell, convert, or load cards with Bitcoin anonymously.
• Paxful: a peer-to-peer marketplace with zero transaction fees on purchases and a wide range of payment methods.

Step 2: Register and Verify Your Account

After choosing an exchange, you will need to create an account and complete the Know Your Customer (KYC) process. This typically involves providing personal information and verifying your identity and address. Make sure to have your photo ID readily available.

Step 3: Deposit Funds

To start buying Bitcoin, you will need to deposit funds into your account. You can link a bank account or credit/debit card to the exchange. Some exchanges may also offer alternative payment methods, such as Apple Pay, Google Pay, or local payment options.

Step 4: Place a Bitcoin Order

Once your account is funded, you can place an order to buy Bitcoin. Remember that you don't need to purchase an entire Bitcoin, as most exchanges allow you to buy fractions of a Bitcoin.

Step 5: Store Your Bitcoin in a Secure Wallet

After purchasing Bitcoin, it is essential to withdraw it to your secure personal wallet. You can use a software or hardware wallet, or you may choose to store your Bitcoin in a wallet provided by the exchange. However, leaving your Bitcoin on an exchange poses a security risk, as exchanges are often targets for hackers.

Additional Considerations:

• Local Sellers: There are local individuals and businesses in Trinidad and Tobago who buy and sell crypto daily. These sellers typically provide larger amounts of cryptocurrency and may accept TTD payments.
• Payment Methods: When choosing an exchange, consider the payment methods they support. Credit and debit card payments are convenient, but some local banks may restrict their use for cryptocurrency purchases. Bank transfers are a secure option, especially for large amounts, but they may take longer and incur varying fees.
• Anonymity: If you value anonymity, you can explore P2P exchanges like Bisq, Paxful, or LocalSwap, which allow you to buy Bitcoin without completing the KYC process.
• Legal Status: While Bitcoin is not recognized as legal tender in Trinidad and Tobago, it is legal for citizens to buy, store, and sell cryptocurrencies.

Bitcoin's price history

Bitcoin was first created in 2009 and could be bought for pennies or 'mined' on a home computer. By the beginning of 2017, 1 Bitcoin was worth around $900 USD, and on 28 November of that year, its price surpassed $10,000 USD.

In March 2021, Bitcoin's price rose due to Tesla's announcement that it had acquired $1.5 billion USD worth of the digital coin. The IPO of the US's biggest crypto exchange also fuelled mass interest.

Bitcoin's price continued to rise, and in March 2024, it reached an all-time high of over $73,000 USD. This price hike was connected to the approval of Bitcoin ETFs in the United States.

However, the cryptocurrency market experienced a downturn when another crypto exchange, FTX, filed for bankruptcy in 2024, causing Bitcoin's price to drop to roughly $61,415 USD as of 2 August 2024.

Despite the fluctuations, Bitcoin's price history demonstrates its evolution and growth over the years, from a fringe asset to a mainstream financial instrument.

Bitcoin's legality in Trinidad and Tobago

Bitcoin and other cryptocurrencies are not recognised as legal tender in Trinidad and Tobago. However, it is legal for citizens to buy, store, and sell them.

In 2019, the Central Bank of Trinidad and Tobago, the Trinidad and Tobago Securities and Exchange Commission, and the Financial Intelligence Unit of Trinidad and Tobago (collectively known as the "Regulatory Authorities") issued a joint statement clarifying that cryptocurrencies are neither regulated nor supervised by the government. As such, there are no consumer protection laws that protect citizens against losses that may arise from the use of cryptocurrencies.

Despite this, the Regulatory Authorities have been developing tools to help assess the risks, characteristics, and functions of various cryptocurrencies, and assist in the regulation of such financial technology products and services throughout the country. They also provide consultations on any cryptocurrency offerings on the local market on a case-by-case basis.

In addition, new organisations such as the FinTech Association of Trinidad and Tobago and the Trinidad and Tobago Financial Centre (TTIFC) have encouraged the growth of the financial services sector in the country and promoted collaboration between the state and private sector.

In 2018, the Central Bank of Trinidad and Tobago also issued a statement that it was willing to work with companies that provided Fintech and virtual currencies, while cautioning that virtual currencies were risky, could be used to facilitate criminal activities, and lacked insurance and regulator recourse in case of problems.

Best Bitcoin wallets for Trinidad and Tobago

While there are no Bitcoin ATMs in Trinidad and Tobago, there are several trusted online exchanges and platforms where you can buy, sell, and trade Bitcoin and other cryptocurrencies. Here are some of the best Bitcoin wallets available in the country:

• Zengo: A user-friendly iOS and Android crypto and NFT wallet that allows you to buy, sell, and self-custody directly from the app.
• Ledger Nano S Plus: A secure hardware wallet that connects to your computer via USB-C.
• BlueWallet: A popular desktop Bitcoin wallet that is compatible with Windows, Mac, and Linux.
• Changelly: A platform that allows you to exchange one cryptocurrency for another and also buy using a bank card. Changelly has a simple interface, a quick registration process, and no geographical restrictions.
• MetaMask: A free and easy-to-set-up browser extension wallet that is used by many crypto investors.
• Trust Wallet: Another popular and trusted crypto wallet available worldwide.
• Exodus: A wallet that is considered best for beginners.
• Electrum: A wallet that is best for advanced Bitcoin users.
• Mycelium: A wallet that is considered best for mobile users.
• Trezor Model T: A wallet that is considered best for security.
• Abra: An all-in-one cryptocurrency wallet and exchange app available on iOS and Android.

When choosing a Bitcoin wallet, it is important to consider factors such as security, ease of use, compatibility with different devices and cryptocurrencies, and additional features. It is also recommended to withdraw your Bitcoin from an exchange to your own non-custodial wallet for security, privacy, and full control over your Bitcoin.

Frequently asked questions