Brazil has more than 3 million active crypto users and a trading volume of more than $2.4 billion in 2023. By this number, Brazil has been recognized as Latin America’s biggest player in the cryptocurrency world. If you’re living in Brazil or just visiting, wondering, “How do I break into the Bitcoin space?” you’re not alone. I asked my cousin, who lived in São Paulo, the same question when he introduced me to crypto during the pandemic.
I remember him showing me how Brazilians used platforms like Binance, Mercado Bitcoin, and even mobile apps that accept PIX to trade crypto daily. I also remember how shocked and happy I was when I learned how to trade easily, and I want you to feel the same way after reading this piece.
In this article, I’ll teach you everything I learned about buying and selling Bitcoin in Brazil. The process is pretty easy, and you’ll be able to do it yourself even if you’re new to the crypto space.
Why Buy Bitcoin in Brazil?
Bitcoin is getting very popular in Brazil for many reasons. Here are some factors making bitcoin trading go viral in Brazil;
- Protection from inflation: The Brazilian market and economy have had their fair share of economic instability. So, people are trying to avoid losing money; instead of storing real cash in the bank, they are converting their cash into Bitcoins and just storing them so they won’t have to worry about a market crash.
- Digital convenience: Over time, apps like PIX have made sending and receiving Bitcoin super simple, as simple as sending a text. So, Brazilians are more comfortable transacting with crypto than with any type of money.
- Global access: Bitcoin makes buying stuff online or investing in an international project so easy. Whether you are in Brazil or outside Brazil, shopping or investing with crypto brings flexibility, privacy, and ease. According to my cousin, when he started using Bitcoin, it was mainly to move money faster across countries without those painful bank fees. Now, he uses it to save, trade, and even buy things online.
Factors to Consider When Choosing a Bitcoin Exchange
1. Security
Security is the most important factor to consider when choosing an exchange. The number of hacks and subsequent shutdowns of centralised exchanges in recent times proves just how important security is. Choose an exchange with strong security and safety measures to protect users’ assets but without a custodial wallet.
2. Reputation
Don’t take referrals for granted. If people say great things about a platform, you might want to try it. But it is best to ditch such if you suddenly hear about a platform that seems too good to be true, yet nobody is talking about it. Google the name of the platform. Check on Reddit if there are any negative ratings. Read what other Brazilians say online about that platform before jumping on it.
3. User Reviews
Reviews seldom lie. So, do well to check what other users are saying about an exchange before you use it. Pay attention to the specific things they’re complaining about or praising. Use them as one of the parameters for deciding whether you use an exchange or look for another alternative.
4. Supported Payment Methods
You must know the supported payment methods of any exchange you choose because that’s how you’ll start your trade or withdraw your funds. You should look out for exchanges that support up to three payment methods. One of them should be a payment method you’re familiar with. Some popular methods include using credit/debit cards, bank transfers or bank account deposits.
5. Ease of Use
This goes without saying that the easier, the better. Ensure the platform has a simple interface you can interact with on an app or website. You should be able to carry out basic transactions or navigate without hassles. If you don’t understand how to use the site or app, that exchange may be too complicated for you.
6. Trading Fees
Different trading platforms have different transaction fees. Starting with high fees can be challenging and avoided. You need to search thoroughly to find one with low trading or transaction fees and the other elements of an excellent crypto exchange.
7. Customer Support
If you need help with any part of a service, customer support is supposed to help you. This is why you should consider the quality of customer support service an exchange offers before you pitch your tent on it.
Top Places to Buy Bitcoin in Brazil
1. Mercado Bitcoin
This is where it all happens. This crypto exchange platform was developed and used very widely in Brazil. It has over 1.5 million users, with a beginner-friendly interface, and supports PIX. It is trusted by millions of local and international users. Mercado Bitcoin supports Brazilian payment methods but slightly have higher fees compared to global exchanges
2. Binance
This is one of the best platforms where anyone can buy Bitcoin in Brazil for several reasons. Binance is a renowned name in the cryptocurrency industry. It has suffered multiple attacks but has stood firm in providing services to millions of users across the globe.
Binance offers free Bitcoin trading for BTC/TUSD pairs on margin and spot trading. The platform has an aesthetically appealing interface and is beginner-friendly.
Security-wise, Binance has faced many hacking attempts in the past and has kept users’ funds safe. It uses several security measures, including Multi-factor authentication, KYC, withdrawal whitelist (a list of trusted addresses to which you can send crypto), and Secure Asset Fund for Users (SAFU), among others. Needless to say, security is quite strong on Binance.
You can get started by creating an account on the website or downloading the app from Apple Store or Google Play Store.
3. Kraken
Kraken is a well-known crypto exchange in the world. It’s operational in over 190 countries and is one of the places to buy Bitcoin in Brazil. With a simple interface and a strong customer support department, Kraken provides top-tier Bitcoin trading services. You can buy Bitcoin for as little as $10 and begin your journey from there.
The platform is secure and follows compliance protocols like KYC requirements. Download the app on Apple or Google Play store.
4. Bitfinex
This is another popular exchange where you can buy Bitcoin in Brazil. It deals in diverse crypto trading, such as Margin and spot trading. It also allows P2P trading. It’s perfect for beginners, intermediates, and experts.
Bitfinex, through its order book service, enables users to swap Bitcoin and other cryptocurrencies with little fees. It uses 2FA for essential activities such as logging in and withdrawing. There are also other active security measures for its users.
Though the user interface might be a bit overwhelming at first, beginners can easily catch up, especially with the charts on the website. You can download the app on Android or iOS.
Additional Options for Buying Bitcoin in Brazil
Asides from crypto exchanges, an interested investor can buy Bitcoin from other platforms. They’re listed below.
1. P2P (Peer-to-peer) platforms or marketplaces
As the name suggests, P2P marketplaces are platforms where traders trade directly with other traders. There is no middleman that helps anyone like centralised exchanges do. This option suits an intermediate or experienced crypto investor/trader better.
2. Bitcoin ATMs
There are few Bitcoin ATMs that allow crypto holders to make or accept payments with a debit card. However, one can buy Bitcoin in Brazil from any such ATM. It’s very convenient but challenging to find.
3. Local Bitcoin Communities
Belonging to a small community or group of crypto holders has numerous benefits, including access to direct trades. Buying Bitcoin in Brazil from a local community may not be entirely advisable. There could be errors or losses due to a lack of updated prices and other factors. But it’s an option worth exploring in little strides.
Factors to Consider Before Buying Bitcoin
Before you buy Bitcoin, even in Brazil, where it’s now legal, some factors must be considered. You need to know the risks associated with trading crypto, Bitcoin especially. So, take a look.
1. Volatility
Bitcoin, like most cryptocurrencies, is volatile. The prices fluctuate often and quickly without warning. The digital asset does not derive its value from any other asset. Hence, its value can rise or fall unpredictably based on demand/supply, economic or political events and speculations.
Volatility comes with a high risk of loss. A beginner can lose their investments if they’re not HODLing.
2. Regulations
Since cryptocurrency has been legally adopted, investing in Bitcoin may be favourable. However, regulations can change the market and affect your investment.
3. Security Concerns
Since Bitcoin exists on a public ledger system, anyone can access it, and this has provided an avenue for malicious actors to launch scam attacks on crypto holders, such as dusting attacks, address poisoning, phishing attacks and whatnot. Besides, as a beginner, you’ll most likely use a custodial wallet on a centralized exchange, which comes with the risk of being hacked.
Wallet Options for Keeping Your Bitcoin Safe
Digital assets are stored on the blockchain, and the keys to access them are stored in wallets. So, indirectly, your crypto is stored in your wallet.
There are different types of cryptocurrency wallets. The primary category is hot and cold wallets. Another is custodial and noncustodial wallets, otherwise known as decentralised wallets.
Custodial wallets are controlled by the exchange that helps you handle your crypto investments. Decentralised wallets are the ones you control yourself by having access to your private keys. Some centralised exchanges now offer decentralised wallets to quell the security concerns of their users.
The best options for security are decentralised wallets. You can store your Bitcoin in hardware/cold wallets like Trust Wallet to take your security up a notch.
Regulatory Obligations
Many countries still have restrictions on the use of cryptocurrencies. Some regulations may not allow some exchanges to operate in a country. For instance, there was an update on the use of cryptocurrency in Brazil, and Binance was banned in the US and Nigeria. Any country can place restrictions at any time on Bitcoin.
So, staying updated with information will keep you ahead of the curve. Follow crypto communities and forums on social media.
Important Considerations: Brazil’s Crypto Laws & Taxes
As a crypto trader in Brazil, here’s what you need to know:
- If your monthly crypto transactions exceed R$35,000, you must report them to Receita Federal (Brazil’s IRS).
- Capital gains tax of 15% applies to profits above that threshold.
- Track and record all your trades, wallet addresses, and receipts.
- Use official platforms that provide transaction history.
Failure to report could lead to fines or worse. So play it smart.
Frequently Asked Questions (FAQs) About Where To Buy Bitcoin In Brazil
Where can I buy Bitcoin in Brazil?
You can buy Bitcoin in Brazil through cryptocurrency exchanges, peer-to-peer (P2P) platforms, and Bitcoin ATMs. Popular exchanges include Mercado Bitcoin, Foxbit, Binance, P2P Platforms, etc.
Is it legal to buy Bitcoin in Brazil?
Yes, buying Bitcoin is legal in Brazil. The country has clear regulations, and exchanges must comply with the Central Bank of Brazil and CVM (Securities Commission) rules. Some platforms require identity verification (KYC) to comply with anti-money laundering (AML) laws.
What’s the best way to buy Bitcoin with Brazilian Real (BRL)?
The easiest ways to buy Bitcoin with BRL are through bank transfer (TED/PIX), credit/debit cards, etc.
Conclusion
Brazil is leading Latin America into a digital future, and Bitcoin is a big part of it. Whether buying your first satoshi or looking to sell and cash out through PIX, now’s the perfect time to get involved.
Just remember what I always tell my friends who are just beginning their bitcoin journey: Keep it simple, start small, and always double-check who you’re trading with.
Boa sorte!
