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Invest in Petro in 2023

Amala Pillai
Amala Pillai
16th Feb 2023
Disclosure

With the number of cryptocurrencies growing all the time, you've got plenty of options if you want to invest in an alternative to the major ones. One of the lesser-known cryptocurrencies is Petro (PTR), which was designed to help Venezuela's economy and also enable the country's regime to get around imposed sanctions.

If you're interested in potentially investing in PTR, you're in the right place. This page will discuss everything you need to know, ranging from the best brokers to buy the currency from to whether or not it's safe to do so.

Best Way to Invest in Petro in 2023

Petro is quite difficult to get a hold of, but some platforms offer PTR as an option. We've put together a list of the best providers below.

1
eToro
Minimum Deposit
$50
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10
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2
Pepperstone
Minimum Deposit
$200
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User Score
9
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Fast execution speed
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3
Eightcap
Minimum Deposit
$100
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9
250+ Cryptocurrencies
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4
Coinbase
Minimum Deposit
$50
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9
Trade and invest in over 25 cryptocurrencies
Extremely simple user interface
Over 68 million customers
5
Changelly
Minimum Deposit
$20
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8
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What Is Petro?

Petro is a state-issued cryptocurrency in Venezuela. The coin launched in 2018 and was an attempt to help the country's flailing economy.

At the time, the South American nation had also been dealing with international sanctions from both the US and the European Union. For President Nicolas Maduro and his regime, the currency was viewed as a potential way to tackle these problems.

Key facts:

  • Year launched: 2018

  • Maximum circulation: 100 million

  • Percentage owned by Venezuela's sovereign fund: 55%

Pros and Cons

Pros
From an investment perspective, Petro doesn't have many benefits — unless you live in Venezuela. In 2018, Maduro said that every person in the country would be paid at least 0.5 PTR per month — as long as they signed up for the PetroApp wallet.
Cons
The biggest drawback for people looking to invest in Petro is that it's extremely challenging to get a hold of if you don't live in Venezuela. At the time of writing in November 2021, no reputable foreign exchanges offer PTR — though the Venezuelan government wants to change this at some stage.
When thinking about investing in Petro, it's also important to consider Venezuela's political structure. The government has come under scrutiny for its poor human rights record. Considering that the coin is backed by the state, you need to think carefully about if you want to be associated with this.
Venezuela's economic struggles are also a reason to reconsider investing in PTR. After enduring significant hyperinflation, the country attempted to address this by introducing a new currency in 2021. Part of Petro's purpose was to help in this respect, but so far — that hasn't been the case. The struggles of the Venezuelan economy have translated to the coin failing to perform well, making it a no-go for many investors.
Even if Petro was available on non-Venezuelan cryptocurrency exchanges, that doesn't mean you'd be able to purchase it. The US has warned about potential related problems when investing in it, while the Trump administration banned making transactions in the country with PTR.
Another drawback of Petro is that it's not decentralised.

How Does Petro Work?

Petro is backed by some of Venezuela's oil reserves, and the government said when it was launched that it would be sold at the price of one barrel.

The country's government had a lot of intentions when it introduced Petro. First and foremost, it was designed to help tackle the hyperinflation that has made living in Venezuela a daily struggle for many citizens.

One important thing to note is that PTR was never designed to replace the country's fiat currency. However, it was seen as a means for buying items, paying taxes, and so on. Despite being available in Venezuela, though, not many people use cryptocurrency.

Limited information exists about the blockchain that Petro uses, though it's worth noting that the currency's ledger required maintenance last year. Bitcoin and Ethereum do not require this because of the technology they use.

Ways to Buy Petro

While circumstances might change in the future, the Petro isn't available on foreign exchanges — and is therefore extremely difficult to buy if you don't live in Venezuela.

If you live in Venezuela, however, you can buy the coin.

  • Cryptocurrency exchanges: You can use a selection of platforms in Venezuela to purchase PTR. You'll need to create an account first and then deposit money before putting in a selling order.

How to Invest in Petro

For most cryptocurrencies, you've got multiple options for investing. But if you're looking for ways to invest in Petro, you'll struggle to find any.

Is It Safe to Invest in Petro Right Now?

The answer to this question depends on where you buy it from and where you live. If you live in Venezuela and use a reputable exchange, you shouldn't have any problems. If you live outside of Venezuela, it's important to consider the risks involved.

Investing in Petro outside of the US will likely mean using an unreputable platform to get a hold of your coins in the first place. Besides the risks of scams, you might find that these websites aren't secure, and you share too much personal information on them.

It's also important to consider the risks associated with Venezuela's economy. Despite attempts to reverse the situation, the country is still in turmoil. Petro has shown no signs of changing that and is unlikely to help Venezuela turn a corner anytime soon. As a result, you're better off looking for more accessible (and potentially prosperous) cryptocurrencies.

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Author Bio
Amala Pillai
Amala Pillai
Amala is custom content and news editor based in London. She is a former financial journalist based in Singapore with 7 years of experience covering a range of business and financial topics. Now she focuses on crypto and macro-economics. She has also covered feature profiles, tech, business politics and ESG— she was the Environment Editor for the Solutions Newspaper, 2016 and worked in an editorial capacity at both News corp (Dow Jones) and JBN. She also has experience as a content creator, strategist and brand editor for various financial institutions and banks.