Cryptocurrencies and other digital assets have revolutionized the way and manner individuals and businesses conduct their businesses, pay their suppliers and employees, and send money to their loved ones.
Before now, the government through the central banks of different countries had been in charge of regulating how financial institutions permit cross-border payments. But since the inception of cryptocurrencies, the central banks have taken the back stage.
Bitcoin, the first and largest cryptocurrency on the market came to be in 2009 after different iterations by a group identified as Satoshi Nakamoto.
Bitcoin has different real-world use-cases, including for the payment of goods and services on different eCommerce platforms. Big brands in the automobile industry have also signified interest to start collecting Bitcoin beacuse of the easy payment method.
Brazil is a modest country with its inhabitants craving for the use of Bitcoin and other cryptocurrencies for online payments. As a crypto enthusiast resident in Brazil, it’s not out of place for you to learn how to buy Bitcoin in Brazil.
Bitcoin is best purchased on a centralized or decentralized cryptocurrency exchange. Ahead, you will learn how to buy Bitcoin in Brazil and what to look out for when choosing an exchange to work with.
But before we dive deeper, let quickly explain what Bitcoin is and also talk about the person/group that aided the creation of this digital asset.
What is Bitcoin?
Bitcoin was launched in 2009 by an anonymous person/group known as Satoshi Nakamoto. At its core, Bitcoin is a decentralized virtual currency that uses a network of computers to effect transactions.
All transactions involving the use of Bitcoin are recorded on a ledger, which we today call “the blockchain.” There are so many benefits of using Bitcoin, including:
Payment of goods and services
One of the greatest benefits of using Bitcoin is for the payment of goods and services online. If you visit an e-commerce storefront that accepts Bitcoin, after purchasing the products that the brand offers, you can reach out to your digital wallet to pay for the goods with your Bitcoin.
In other words, with Bitcoin, you don’t need to go around town with bundles of paper money in your wallet or pocket.
Unlike using traditional financial institutions to make payments, say to a supplier, Bitcoin lets you pay your suppliers swiftly, while the recipient will receive the money instantly. Banks take up to 2 days or more to process cross-border payments, but with Bitcoin the transactions are fast and instant.
No third-party interference
Payments involving the use of Bitcoin do not have any third-party interference. This is unlike the use of traditional financial institutions where you need different levels of approvals before funds can be moved from one account to the other.
Now you know what Bitcoin is and the benefits it boasts of, let’s take a look at how to buy Bitcoin in Brazil.
How to buy Bitcoin in Brazil?
The process of buying Bitcoin in Brazil is the same in virtually every other country of the world. You need to register with a crypto exchange to be able to buy Bitcoin and transfer the asset to your wallet.
An exchange is a platform where crypto users buy, sell, trade, and invest in different cryptocurrencies. You can also swap and convert cryptocurrencies on exchanges.
Buying Bitcoin on an exchange is not the only way to purchase the asset, there are other ways, but an exchange remains the best. An exchange is not only safe, it is also very convenient.
If you are ready to buy Bitcoin in Brazil, the first step is to identify a suitable exchange that you can work with. There are hundreds of cryptocurrency exchanges on the market, so you need to do your own due diligence to choose the best exchange that suits your investing style and budget.
Before you register on an exchange, ensure you have the appropriate documents handy. The documents will help you scale through the Know Your Customer protocols.
In Brazil, the government is doing everything within its power to regulate the activities of crypto exchange and other transactions involving the use of Bitcoin.
The Know Your Customer requirement is a means for the government to track and monitor cryptocurrency transactions, and to a large extent money laundering.
After opening an account with an exchange, the next step is to deposit funds into your account. You can deposit the Brazilian Real into your account or opt for the United States Dollars (USD).
In this step, you will need to select Bitcoin (BTC) from your dashboard and enter the quantity of Bitcoin you wish to buy and the corresponding amounts in the spaces provided, enter your wallet address, and then click on the purchase button.
The last step in the process of buying Bitcoin in Brazil is to review the transactions, and make sure that the exact amount of Bitcoin you purchased has been received in your digital wallet.
If you find that the amount in your wallet is lower than what you purchased, you can immediately proceed to the dispute resolution forum to lodge your complaints.
Remember, a crypto exchange is not a digital wallet so you need a digital wallet to enable you to store the Bitcoin that you purchase from an exchange.
The benefits of using a digital wallet is that the risks are minimal compared to leaving your assets on an exchange, which can easily be hacked by fraudsters.
How to choose an exchange to buy Bitcoin?
With hundreds of crypto exchanges on the Brazilian market, it can be overwhelming for the average Brazilian to choose a suitable exchange to work with. Thankfully, we have done the research on your behalf, so you have nothing to worry about.
Some of the best brokers that are worth considering in Brazil include: Binance, Bitcointoyou, BitPrice, Foxbit, liquid, Bitcoin Market, Novadax, Nubank, Walltime.
One of the things to look out for when you are looking to purchase Bitcoin in Brazil is the exchange’s track record and reputation. You don’t want to deal with an exchange that does not have any track record of performance.
You don’t also want to deal with an exchange that has not helped any cryptocurrency trader to purchase a Bitcoin since their establishment.
Purchasing Bitcoin in Brazil just got easier with the use of an exchange. Your best bet is to identify a reputable exchange, become an account holder, fund your account, and start buying Bitcoin. With Bitcoin (BTC) in your wallet, you can trade or invest in other cryptocurrencies.