Key Takeaways
- To buy crypto in Brazil, pick a trusted exchange, select a legal exchange, complete KYC verification, fund your account, and decide how to store your coins securely.
- Selling is just as simple: transfer your coins to an exchange, set your price, and sell and withdraw your money.
- Stay informed on Brazil’s crypto regulations, taxation rules, and secure storage practices to make sound trading decisions.
Brazil is quickly becoming one of the leading countries in Latin America in terms of cryptocurrency adoption. With millions of users and a growing number of platforms, buying and selling digital assets has become accessible to people from all walks of life. Popular exchanges like Mercado Bitcoin and Binance support local payment methods like PIX, making transactions fast and convenient. This blog provides a complete guide from how to buy and sell crypto to understanding the country’s tax rules and regulations.
How to Buy Cryptocurrency in Brazil?
With a tech-savvy population and increasing adoption of digital assets, buying cryptocurrency in Brazil is a straightforward process when you understand the steps involved.
Choose a Cryptocurrency Exchange in Brazil
The first step to buying cryptocurrency is selecting a reliable platform. Brazil has several locally-operated exchanges and international platforms that cater to its market. Some of the most popular include Mercado Bitcoin, Binance, Foxbit, and NovaDAX.
When selecting an exchange, make sure it is regulated by the Brazilian government or complies with local financial guidelines. Compare fees, supported cryptocurrencies, and features such as mobile apps, staking, or savings accounts. Ensure the exchange accepts Brazilian Real (BRL) for deposits and withdrawals. Look for one with good customer service in Portuguese and options for quick payments like PIX.
Create and Verify Your Account
After choosing an exchange, you’ll need to create an account to start trading:
Sign Up: Register on the platform using your email address or phone number. Create a strong password to secure your account.
KYC Verification: Brazilian exchanges typically require identity verification as part of the Know Your Customer (KYC) process.
- Submit your CPF (Cadastro de Pessoas Físicas), a national taxpayer identification number.
- Provide a government-issued ID (e.g., RG or CNH).
- Upload proof of residence, such as a utility bill or bank statement.
Some exchanges may request a selfie or video verification for added security. Make sure to enable two-factor authentication (2FA) to enhance account security.
Deposit Funds into Your Account
Once your account is ready, you need to deposit Brazilian Reais (BRL) into the exchange to buy crypto. Most exchanges in Brazil let you deposit money using:
- PIX Transfers: A fast and free way to transfer money directly from your bank account. It allows 24/7 transfers, including weekends and holidays. Funds are available within seconds after completing the transfer.
- Bank Transfer (TED or DOC): Slower than PIX but still widely used. TED transfers are usually processed on the same day if made before 5 PM on business days. DOC transfers take one business day.
- Credit or Debit Card: You can use your card to deposit, but fees are usually higher. Funds are usually credited within a few minutes to an hour.
Ensure you deposit in BRL to avoid currency conversion fees. When you deposit money, follow the exchange’s instructions carefully. Double-check all account numbers to avoid mistakes. PIX is the fastest and most recommended option in Brazil.
Select the Cryptocurrency to Buy
With funds in your account, you can choose the cryptocurrency you want to purchase. Popular choices in Brazil include Bitcoin (BTC), Ethereum (ETH), and USDT (Tether). Some platforms also support local stablecoins pegged to BRL, like BRZ. Research the cryptocurrency’s historical performance, use cases, and market sentiment before buying.
Place a Buy Order
Once you’ve chosen your crypto, follow these steps:
- Go to the “Buy” section of the exchange.
- Enter the amount of crypto you want to buy or the amount of BRL you want to spend.
- Choose the type of order:
- Market Order: Buy instantly at the current market price.
- Limit Order: Set a price, and the exchange will buy when the market reaches it.
- Confirm your purchase. Your crypto will appear in your account after the transaction is complete.
Store Your Cryptocurrency Safely
After buying, securing your cryptocurrency is crucial:
- Exchange Wallets: Convenient for short-term trading but less secure for long-term storage.
- External Wallets: Use software wallets like MetaMask or hardware wallets like Ledger or Trezor for added security. Back up your wallet’s private keys and recovery phrases in a secure location.
Maintain Tax Records
In Brazil, cryptocurrency transactions are subject to tax regulations:
- Transactions exceeding BRL 35,000 per month are subject to capital gains tax.
- Report all crypto trades, even if no tax is owed, to the Brazilian tax authority (Receita Federal) via the Programa Gerador de Declaração (PGD).
- Keep detailed records of all your transactions, including purchase prices, dates, and amounts.
How to Sell Crypto Currency in Brazil?
Selling cryptocurrency in Brazil is easy if you know the steps. Here’s how you can sell your crypto and get your money in Brazilian Reais (BRL) safely and quickly.
Move Your Crypto to the Exchange
If your cryptocurrency is in an external wallet (like Trust Wallet or Ledger), you need to transfer it to the exchange where you want to sell.
- Copy the deposit address from the exchange.
- Double-check the address before sending your crypto to avoid mistakes.
Bitcoin or Ethereum transfers usually take 10-30 minutes. Faster blockchains like Solana or Binance Smart Chain may take under 10 minutes. Keep in mind that there may be a small transaction fee (network fee) for moving your crypto.
Choose the Amount and Type of Sale
Once your crypto is in the exchange, you can sell it.
Choose the Amount: Decide how much cryptocurrency you want to sell. You can also sell all of it at once.
Sell Options:
- Market Order: Sell right away at the current market price. This is fast and simple.
- Limit Order: Set a price at which you want to sell. The sale will happen when the market reaches that price.
Confirm the sale. Your crypto will be converted into BRL or stablecoins, depending on your choice.
Market sales are popular in Brazil for quick conversions into BRL, especially on platforms like Mercado Bitcoin or Foxbit, where liquidity is high. Limit orders may help you sell at a better price if you’re not in a hurry.
Withdraw BRL to Your Bank Account
After selling your crypto, the amount will appear in your exchange wallet. Most Brazilian exchanges like Mercado Bitcoin and NovaDAX convert crypto directly into BRL after the sale.
If you’re not ready to withdraw to BRL, you can convert to stablecoins like USDT or BRZ for later use. Check the exchange’s conversion fees to ensure you get the best value for your sale. Now, you can transfer it to your bank account.
- Bank Transfers via PIX: PIX is the fastest and easiest way to withdraw money in Brazil. Funds usually transfer instantly. Most exchanges allow free or low-cost PIX withdrawals.
- Bank Transfers (TED/DOC): These take longer, sometimes up to a full business day, and may incur higher fees.
Note: The name on your exchange account must match the name on your bank account. Otherwise, the transfer may fail.
Exchanges like Binance or NovaDAX often have minimum withdrawal limits. For example, the minimum withdrawal could be R$50, so check the requirements on your platform.
Plan Your Next Steps
After selling, decide what to do with your funds:
- Reinvest: You can use the proceeds to buy other cryptocurrencies or assets.
- Hold in BRL: If you’re planning future expenses, withdraw the money to your bank account and keep it as cash.
- Diversify: Consider diversifying your investments into stablecoins like BRZ if you’re waiting for better market conditions.
Popular Cryptocurrency Exchanges in Brazil?
Brazil’s cryptocurrency market is thriving, with millions of people using digital assets for trading and investment. Several exchanges stand out for their ease of use, local payment support, and compliance with Brazilian regulations. Here’s a closer look at the most popular platforms and why they are widely trusted.
Mercado Bitcoin
Mercado Bitcoin is the largest and most widely used crypto exchange in Brazil, with over 3.5 million registered users. It is known for its strong security measures and a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
The platform allows users to deposit and withdraw Brazilian Reais (BRL) via PIX and bank transfers, making it convenient for locals. Its intuitive interface and extensive educational resources make it ideal for beginners. Mercado Bitcoin is also popular because it is a Brazilian company, giving users confidence in its local compliance and customer support in Portuguese.
Binance
Binance is the world’s largest cryptocurrency exchange and is incredibly popular in Brazil due to its low fees, advanced trading options, and vast selection of coins. It supports BRL deposits via PIX, allowing Brazilians to quickly start trading.
Binance also offers features like peer-to-peer (P2P) trading, staking, and futures trading, making it a favorite for advanced traders. Its mobile app is one of the most downloaded in the country, reflecting its widespread usage. Binance’s global reputation and local payment options make it a top choice for both beginners and professionals.
Foxbit
Foxbit is a homegrown Brazilian exchange that focuses on simplicity and accessibility. With over 750,000 users, it has built a strong reputation for being beginner-friendly. Foxbit supports BRL deposits through PIX and traditional bank transfers and offers a range of cryptocurrencies for trading.
The platform is known for its excellent customer support in Portuguese and its commitment to educating users about cryptocurrency. This makes Foxbit a go-to option for those new to digital assets.
NovaDAX
NovaDAX is a rising star in Brazil’s crypto scene, known for its competitive fees and support for over 100 cryptocurrencies. It allows users to trade BRL directly for various coins, including altcoins that are hard to find on other platforms. With fast PIX deposits and withdrawals, NovaDAX appeals to users looking for convenience and diversity in their trading options. It also offers loyalty programs and fee discounts, which have helped it grow its user base in Brazil.
Coinext
Coinext is a smaller but highly trusted exchange in Brazil. It has built a reputation for compliance with local regulations and offers a simple interface that is perfect for beginners. Coinext supports BRL deposits via PIX and bank transfers and provides low trading fees. Its focus on transparency and user education has made it a popular choice for those starting their crypto journey.
Taxation and Regulations for Cryptocurrency in Brazil
In Brazil, cryptocurrency is treated as an asset, and users must follow strict tax guidelines when trading or holding digital currencies.
Crypto Taxation in Brazil
Capital Gains Tax: If you sell more than R$35,000 worth of crypto in a month, you must pay tax on the profit. Profits are taxed at rates ranging from 15% to 22.5%, depending on the amount:
- 15% on profits up to R$5 million.
- 17.5% on profits between R$5 million and R$10 million.
- 20% on profits between R$10 million and R$30 million.
- 22.5% on profits over R$30 million.
Tax-Free Transactions: Sales below R$35,000 per month are tax-free, but you must still report these transactions to Receita Federal.
Earning from Mining and Staking: Crypto earned through mining or staking is taxed as income. You must report these earnings and pay income tax based on their value in BRL when received.
Reporting Requirements: All cryptocurrency activities must be reported to the Receita Federal (Federal Revenue Service), even if no taxes are owed. Use the e-CAC platform or the Carnê-Leão system to submit details of your crypto transactions. Include key details such as:
- Transaction date.
- Type of cryptocurrency.
- Amount traded.
- Value in BRL at the time of the transaction.
You must also include your cryptocurrency holdings and transactions in your annual income tax declaration (Declaração de Imposto de Renda).
Penalties for Non-Compliance: Failing to report transactions or pay taxes can result in a fine of 20% of the unpaid tax. Additional charges for incorrect or late submissions.
Always keep detailed records of your transactions, including purchase and sale prices, dates, and amounts, to simplify tax filing.
Regulations for Cryptocurrency in Brazil
Brazil has developed clear regulations to ensure the safe and legal use of cryptocurrencies. These rules aim to prevent fraud, encourage transparency, and protect users.
Legal Status of Cryptocurrencies
Cryptocurrencies are recognized as assets in Brazil, not as legal currency. This means:
- You can invest in, trade, and use crypto for transactions, but it is not officially recognized as a form of money.
- Payments made in cryptocurrency are treated as barter transactions.
Regulations for Exchanges: Exchanges that operate in Brazil must Be registered with the Central Bank of Brazil and follow local financial regulations. Comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements. This includes verifying the identity of users and reporting suspicious activities.
Foreign exchanges that serve Brazilian users do not automatically report transactions to Receita Federal. Users trading on these platforms must report their activities independently.
Rules for Payments: The Central Bank of Brazil allows businesses to accept crypto as payment, but the transaction is treated as a trade, not a standard payment. Businesses must convert crypto into BRL or stablecoins for accounting purposes.
Reporting Obligations: Exchanges must report all transactions to Receita Federal, including deposits and withdrawals, crypto-to-crypto trades, and purchases and sales involving BRL.
Users must ensure that any unreported activities on international platforms are declared during their annual tax filing.
Conclusion
Cryptocurrency is shaping the future of finance in Brazil, offering exciting opportunities for both new and experienced investors. By following the right steps, choosing trusted exchanges, and staying compliant with tax regulations, you can trade and invest safely in this growing market. Whether you’re starting with a small investment or actively trading, Brazil’s crypto-friendly environment and platforms make it easier than ever to explore the world of digital assets confidently. Always stay informed and make security a priority to get the most out of your crypto journey.
