How to invest in bitcoins in Brazil? Learn everything about cryptocurrency!

First of all, bitcoin is a famous cryptocurrency and has attracted many new investors interested in its profitability and liquidity.

For those who want to learn more about the world of cryptocurrencies, in this article we have gathered essential information on how to invest in Bitcoins in Brazil today.

So, keep reading and check it out exactly:

• What is bitcoin and how does it work;
• What is it for;
• 4 possibilities to invest in bitcoins in Brazil;
• How to invest in bitcoins in Brazil safely.

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What are bitcoins and how do they work?

In short, bitcoin is a virtual currency – the first in the world – so it does not have a physical currency or note, being secured by cryptography – a technology that allows buying and selling directly through the internet.

That is, it is one of the most profitable investments of the decade, and can be used to purchase goods, products and any other items in establishments that accept payment with it.

In fact, this is a secure virtual currency. Created in 2008, it was the first among cryptocurrencies and has since generated increasing interest.

It seems like a complicated thing, right?! But it's not! To be able to acquire bitcoins, whether for investment or for another purpose, the consumer first needs to create a virtual wallet.

In other words, a virtual point where all bitcoins are stored. This wallet can only be created on the official website, called a “blockchain”.

There are two ways to buy bitcoins: online on the website itself of the blockchain, the same as the virtual wallet, or in special ATMs.

However, these types of ATMs do not exist in Brazil. It is worth noting that to purchase bitcoins, regardless of the location you choose, you need to be aware of the exchange rate.

The rules in the Bitcoin system are very specific. The number of bitcoins is limited to 21 million units, and these units are issued through “mining”.

To validate a transaction, mining is also necessary. In this way, the procedure is carried out on super-powerful computers. Where miners, with their computers, are attentive to unravel the operations.

In this whole process, you receive a small part of the Bitcoin reward, a unit. In fact, it can be divided into up to 100 million parts, called “satoshis”.

What is it for?

First of all, cryptocurrencies are used to buy goods and subscribe to services on the internet. They can also be a very profitable investment these days.

In fact, there are people who buy cryptocurrencies, such as bitcoins, with the intention of financial speculation.

Do you know what financial speculation is?

In short, financial speculation is the process of trading an asset, whether it be a stock, a cryptocurrency, a commodity or shares in an investment fund. This procedure is done to make a profit from the short-term variation in the prices of these assets, in this case, the cryptocurrency.

How to invest in bitcoins in Brazil? Discover 4 possibilities

1. Exchanges (Specialized Brokers)

Exchanges are brokers specialized in trading crypto assets. They act as digital platforms, acting as intermediaries for the purchase, sale and exchange of cryptocurrencies and tokens.

Thus, the role of the Exchange is to bring together buyers and sellers of cryptocurrencies and provide a safe environment for purchase and sale transactions to take place.

Before purchasing these assets, it is important to research these companies because services and fees vary greatly between them. In addition, some exchanges use alcohols that are not in the portfolios of others.

If you want to buy cryptocurrency, there is nothing stopping you from doing so directly from other people who want to sell it.

This type of trading is called “peer-to-peer” (P2P) and once completed, it is impossible to know the origin of the funds. This is why cryptocurrency exchanges exist.

In this sense, the process offers users a structure similar to traditional brokerages so that these transactions can be carried out more easily and securely.

2. P2P Trading

P2P trading is a type of exchange where users do not want to be intermediaries of exchanges. Combined with the concept of blockchain decentralization.

This payment method allows a person to transfer Bitcoin (or another currency) directly to another person and receive payment.

However, you need to be very careful, as people don't know each other very well in the virtual environment. Furthermore, the big risk that P2P brings is that a person transfers cryptocurrency without receiving the money from the other party.

Recently, groups have emerged on social networks to create an ecosystem for those who want to use P2P as a trading mechanism. However, this alone cannot prevent fraud.

Over the years, even for P2P systems, exchanges have proven to be a good choice. Due to the platform’s global reach and audience, crypto brokers introduce buyers to sellers, making life easier for both parties.

Currently, P2P is a method used by some buyers to avoid declaring a purchase, even if it is not a revenue requirement in Brazil. What happened is that some of these professionals would not declare their business in exchange for revenue, which must be done through exchanges registered in the country.

For those who opt for P2P exchanges, another considerable advantage is the payment method. As it is a company, The organization allows transactions via credit card, debit card, TED and even other means (such as digital wallets).

3. Currency Exchange

A currency exchange is a company that provides the exchange of one currency for another. The French expression “bureau de change” is widely used in Europe and French-speaking Canada. In the United States and English-speaking Canada, this type of business is often called “currency exchange”.

Currency exchanges are financial institutions that specialize in buying and selling currencies from different countries. As such, they may or may not have links with banks or other financial institutions. The most commonly exchanged currencies are the US dollar, the euro, the pound sterling and the yen.

In the world of cryptocurrencies, exchanges also exist and work in the same way. Some investors profit from the difference between the purchase and sale price.

4. Conventional ATM

In advance, there are more traditional options for those who want to profit from cryptocurrencies. There are ATMs exclusively for trading cryptocurrencies.

Although there are only 8 units spread across the country, all of them are on the Rio-São Paulo axis, it is a very easy option to use.

ATMs are operated by Coin Cloud, a North American company, in partnership with Mercado Bitcoin. We still have few self-service machines in Brazil. But, There is a forecast that there will be a total of 50 devices in Brazil by the end of this year. On the company's website you can check the location of each machine.

How to invest in bitcoins in Brazil safely?

Bitcoin is also a type of investment and requires the same care. If you haven't thought of an action plan yet, now is the time!

Initially, consider opening a diversified investment portfolio so that you do not suffer too much financial risk. For example, if you have R$ 10,000 to invest, choose to invest in an asset that has good liquidity and a low waiting period.

With the value that will be obtained from this investment, take the opportunity to invest in more volatile projects, such as Bitcoin. A good idea is to invest in Tesouro Direto, which is an asset more suitable for conservative investors.

Information is never too much! Read a lot about the assets you are interested in, especially cryptocurrencies. Information is the main raw material in the financial world, and Bitcoin is no exception. This is especially important to pay attention to trends in currencies with very high volatility.

If your goal is to speculate, choose a reputable exchange broker. To do this, research the company and find out its reputation in the market. Remember to research and analyze as an investor, OK?!

Bitcoin’s profitability and liquidity are remarkable. Now that you know a little more about this famous cryptocurrency, you’re ready to start investing.

Learn more about investment categories, read our next post: Investment in agribusiness: everything you wanted to know!