Crypto Politics in Brazil
Cryptocurrencies and exchanges are legal in Brazil, but there is no regulatory framework in place. However, a new tax law was passed that requires bitcoin exchanges to report all transactions to the Secretaria da Receita Federal do Brasil and the Department of Revenue. Companies that fail to report transactions can be hit with $350 fines for every violation. Many exchanges were unable to operate due to these conditions. Acesso Bitcoin, Latoex, and Xdex have announced they will close due to the tax law and the lack of regulation in the country.
Welcomed news is that the government required exchanges to operate under code 6619-3/99 as of May. This is part of an effort to give economic activities unique codes for identification. This particular number will help the government to identify crypto assets. This code will legitimize digital assets, and it will make it easier for law enforcement to stop money laundering.
Crypto Exchange Tips for Brazil
The rules for trading and making a profit on cryptocurrencies in Brazil are generally the same as everywhere else; buy them when they are low and sell them when they are high to make a profit. Anyone buying cryptocurrencies should invest in more than one coin and monitor current events closely to see how they affect the market. Also, no one should invest more than he or she can afford to lose. Investors should be conservative and not get greedy. Making rash decisions with money usually leads to significant losses later on.
Factors to Consider Before Choosing Any Crypto Exchange
- Safety and Security: An exchange should have adequate safeguards in place to protect users. Two-step authentication for logging in is necessary, and the site’s URL should begin with “HTTPS”, not “HTTP”. The site should also have 24/7 support for assisting users, monitoring transactions, and other activities.
- Taxes and Regulations: Brazilian citizens are advised to use a Brazilian headquartered exchange to avoid regulatory complications. If using a foreign platform, learn all the applicable laws, regulations, and taxes for cryptocurrency.
- Transparency: The following bit of advice goes hand-in-hand with safety and security. Make sure the Bitcoin exchange has a physical address and contact information. Legitimate exchanges have valid contact details.
- Fees: Some exchanges have higher fees than others. Anyone looking for an exchange should know what he or she is willing to pay and shop around accordingly.
- Liquidity: The best exchanges have high liquidity, meaning faster transactions and stable prices.
- What Others Have to Say: If an exchange has a poor interface, bugs, or vulnerabilities, avoid it. The best way to know whether an exchange is worth its salt is to read what its users have to say about it. Look through forums, read the comments, and be careful to differentiate between legitimate complaints and venting for venting’s sake.
Best Crypto Exchanges in Brazil
Mercado Bitcoin was one of the businesses that survived the wave of closures following the implementation of Brazil’s latest tax law. This exchange has 1.5 million registered users, and it is easy and convenient to use. It is free to make a deposit, and fees for trading and withdrawing are low. Bank and wire transfers are supported by this platform. Unfortunately, the exchange only works with the Brazilian real. Even so, this is probably the best Bitcoin exchange Brazil market is offering.
Kraken was founded by Mr. Jesse Powell, and its headquarters is in San Francisco, California. It is Europe’s largest exchange. The exchange has very low fees that decrease depending on trade volume. Kraken is very well thought of thanks to its tight security. Users can make deposits with SWIFT, SEPA, and ACH.
Binance has a storied history. Founded in China, the exchange’s owner, Changpeng Zhao, left his homeland after the country imposed harsh cryptocurrency restrictions. It is now headquartered in Malta. Binance is a very successful exchange, processing a billion dollars per day. They offer reasonable trading fees and work with the Israeli firm Simplex to process Visa and MasterCard. It is also one of the best crypto exchanges for margin trading. They have expanded to include Binance Jersey, a platform for private individuals and companies in Europe wanting to work in pounds and euros.
Binance suffered a significant setback in 2019 after a hacking attack. The hackers stole $40 million worth of Bitcoin. Despite this attack, Binance is dedicated to keeping customers safe from online threats.
Godex is a high-speed exchange, with orders taking five to 30 minutes to be processed. This exchange also has reliable and modern security arrangements in place to protect its users from hackers. Additionally, 200 coins are on the platform, including Bitcoin, Ethereum, and Litecoin, and no exchange limits are in place. The availability of coins makes it one of the best crypto exchanges most options.
Coinmama is a Slovakian exchange founded in 2013. The exchange works in most countries and supports a variety of fiat currencies. Secondly, users can buy and sell cryptocurrencies with bank cards or through a bank transfer. Coinmama has high card limits, and it is highly reputable and secure. However, they charge exorbitantly high fees. Customers should expect to pay from 4.9 to 5.9 percent. Despite high commissions, many people think that this is the best bitcoin exchange in Brazil and worldwide.
eToro is an Israeli exchange on which users can trade crypto. They can also trade stocks, currencies, and commodities, making eToro one of the world’s most versatile exchanges. eToro’s most interesting feature is “Copy Trading,” in which users can follow their favorite traders. The downside to eToro is that selling assets is not allowed; people can only trade them. Traders who want to own assets should search for another exchange.
CEX.IO is a British exchange founded by Mr. Oleksander Lutskevych in 2013. Mr. Lutskevych’s site began as a cloud mining service and Bitcoin exchange, expanding to 500,000 registered users across Europe, North America, and South America. The exchange has 24-hour support and a variety of payment options, including credit cards. Credit card purchases work almost immediately. The exchange also has very low trading fees. This exchange has an excellent reputation and secure site, but it has an arduous and extensive verification process.
This is a Finnish exchange founded by Jeremias Kangas; it is an escrow service that matches people looking to buy and sell crypto. The exchange operates in Europe, North America, and other locations. Users can post advertisements and use any payment methods they wish. Additionally, LocalBitcoins.com allows its users to buy in-person. This is achieved by organizing real-life meetings between buyers and sellers, making it one of the most secure and trusted exchanges in existence. Purchases can be completed quickly, but it is not easy to buy or sell large amounts of Bitcoin. Furthermore, the platform has higher than average prices.
FAQ About the Best Crypto Exchanges for Traders
Which Is the Best Crypto Exchange in Brazil?
There are several excellent platforms for trading cryptocurrencies, and as long as the traders know what they are doing, and the exchange is secure, they can be highly successful anywhere. However, Brazilian Bitcoin traders should choose an exchange headquartered in Brazil, Mercado being a perfect example. Choosing such a platform makes it easier to abide by Brazilian laws, regulations, and taxes.
Is Crypto Trading Legal in Brazil?
Cryptocurrency is legal in Brazil but there is no regulatory framework. However, the nation’s tax authorities require exchanges to report any and all transactions on their platforms. As per the new tax law, exchanges can be hit with substantial penalties if they fail to accurately report a transaction.
What Are the Safest Cryptocurrency Exchanges?
All of these exchanges have their respective security advantages. But, there is something to be said about LocalBitcoins.com’s ability to facilitate real-life meetings between buyers and sellers. This feature helps to establish a level of trust between traders that does not exist on other exchanges. The facilitation of real-life meetings makes this one of the best crypto exchanges for Brazil.
Mercado is also a safe bet for Brazilian crypto traders. One of the security advantages of this exchange is that most of its users have a cold (offline) wallet. Cold wallets are much more secure than wallets on the cloud.
How Do I Trade Bitcoins in Brazil?
Bitcoins and alt-currencies are traded the same as anywhere else for the most part. The only thing traders need to be worried about is paying taxes. Traders should accurately report whatever profits they earn from selling cryptocurrencies, and they should file their taxes on time.
Closing Thoughts About the Best BTC Exchange Brazil
There are many options for Bitcoin traders. When choosing an exchange, weigh their pros and cons and decide from there. Conducting such a cost-benefit analysis will help traders find the perfect exchange for their needs when searching for best crypto exchanges 2020.