If you want to buy Bitcoin in Brazil, there’s a wide range of options available. Both local and international exchanges enable Brazilian users to buy Bitcoin. Brazilians are increasingly turning to Bitcoin. In just one month, the most powerful economy in Latin America registered a record Bitcoin trading volume of 100,000 BTC in 24 hours.
Here’s how you can buy Bitcoin in Brazil as a possible way to protect your savings.
Where to buy Bitcoin in Brazil
Local and international exchanges
Local exchanges can be a great place to buy Bitcoin in Brazil, but this sometimes comes with high transfer fees, long transaction times, and low availability. In many instances, an international exchange may suit you better. There are a variety of options to choose from including centralised or decentralised exchanges. You can also choose whether to buy Bitcoin with your Brazilian real or whether to use another cryptocurrency to do so. Different exchanges will facilitate different payment methods, some are fiat-to-crypto only, while others offer a greater range of crypto-to-crypto pairings.
If you want to use Brazilian real to purchase Bitcoin, you need to create an account on an exchange that offers this capability. Depending on the exchange you use, you can use your debit or credit card to directly purchase Bitcoin, or you can use other cryptocurrencies. In these instances, you will need to make a minimum deposit into the wallet which can be directly linked to the exchange’s dashboard. The benefit of this method is that long transaction times can be avoided, fees can be minimised, and you have better control over your money.
LocalBitcoins is probably the most popular peer-to-peer cryptocurrency exchange available. In this case, transactions happen directly between users, so they’re usually private, fast, and easy.
Thanks to P2P platforms like LocalBitcoins, users can buy Bitcoin in Brazil with cash deposits and also through in-person trades where personal information isn’t always necessary. The downside? Prices can be higher than on third-party exchanges, and you’re more likely to run into scams and fraud attempts.
Bitcoin in Brazil: Rules and tax policy
Buying Bitcoin in Brazil is like many other places in the world. You need to register for an account with a cryptocurrency exchange and, in most cases, go through a process for identity verification. It’s also wise to enable two-factor authentication to add an extra layer of protection to your digital assets.
Also, as cryptocurrency exchange platforms aren’t the ideal place to store your Bitcoin, you should buy a cryptocurrency wallet. This way, you can safely deposit your funds without having to worry about cyber attacks and fraud.
You should also know that Brazilian cryptocurrency exchanges are compelled to report all operations monthly for tax purposes. The Department of Federal Revenue of Brazil (RFB) will receive all the details of your transactions. This includes the transferred amounts and the identity of the customers.
Residents are also required to report all transactions carried out through foreign exchanges when the trading volume is higher than R$10,000 ($2,700) per month.
Brazilian cryptocurrency adopters have seen the market skyrocket. More young people, in fact, prefer to buy cryptocurrencies than invest through the Sao Paulo stock exchange.
If you’re willing to buy Bitcoin in Brazil, you can do it through plenty of cryptocurrency exchange platforms using a multitude of different payment methods. All you have to do is create an account, buy a wallet and, of course, pay your taxes on time.