How to Invest in Bitcoin | Learn step-by-step to invest in Brazil
Bitcoin was the first cryptocurrency in the world and for 12 years it has been running without any interruption, based on an extremely secure decentralized network called Blockchain created by Satoshi Nakamoto, many people want to know how to invest in bitcoinafter all, this investment can be highly profitable.
Today, although there are countless others on the market, bitcoin (BTC) continues to be viewed by the entire community as the main cryptocurrency to invest in.
Below we’ll explain everything about bitcoin and teach you how to how to invest in bitcoin in Brazil.
How to Invest in Bitcoin in 5 Minutes
- Step 1: Choose the right broker for short selling
- Step 2: Open / Register an account (We recommend eToro)
- Step 3: Confirm your identity
- Step 4: Deposit funds
- Step 5: Start trading
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What is Bitcoin?
Bitcoin (BTC) was the first cryptocurrency created in the world. In early 2009, the first Bitcoin was mined by its mythical creator Satoshi Nakamoto.
In general, it is a digital currency, decentralized and that does not need third parties to function. This means that you do not depend on banks, large corporations or governments to move your money. Like Bitcoin, the money is really yours.
Its origins bring us back to the time when the 2008 global economic crisis impacted the entire world with devastating consequences.
A widespread feeling that there would have to be a different system, regardless of the powers installed, motivated to a large extent the appearance of the first cryptocurrency, many people who mined bitcoin at that time and kept the cryptocurrency when it was worthless in the market, nowadays are multimillionaires.
How to invest in Bitcoins?
If you are going to start investing in Bitcoins, know that there are two main ways to make this type of investment:
- Through a broker - Ideal for those who just want to invest in Bitcoin to earn money benefiting from the appreciation of cryptocurrency, as it simplifies the entire investment process.
- Through a scholarship - It allows you to use cryptocurrencies to make purchases, but it is a slightly more complicated process, since it requires the configuration of virtual wallets (Wallets) for your safety.
The best way for you will depend on your willingness to deal with technical difficulties of certain exchanges and the size of their bank.
So many users are looking for platforms where they can invest bitcoin with little money, or how to invest 50 reais in bitcoin, this is also possible in brokers mainly.
Unlike other platforms that have high minimum deposits, you can buy bitcoin at eToro, one of the most famous brokers for you to buy BTC.
We will also present below safe and ideal sites for novice and more experienced investors to buy bitcoins on their own.
How to invest in bitcoin 2021
A strong brokerage option to invest in Bitcoins while spending little is eToro where the minimum deposit is US $ 250 dollars, which is worth approximately R $ 1250,00.
In fact, it does not pay to invest less than that, as it is difficult to make an efficient profit with such low investments.
One of the major advantages and advantages of this broker is that there is no withdrawal fee, nor a minimum withdrawal amount, giving the user more freedom of movement.
Step 1 register with eToro
Go to the eToro website click on “REGISTER”
Step 2 open an account
Open an account by filling out the form with basic information such as: full name, email and strong password. Click with the terms and conditions and then click on “CREATE ACCOUNT”.
Step 3 verify identity
UPLOAD your passport or driver's license, this step is important for you to safely invest in bitcoin.
Step 4 enter the platform
After verifying your account, eToro must notify you within 2 days by email. After that you can deposit your funds, login to the platform and in the menu on the left click on “DEPOSIT FUNDS”.
Step 5 depositing
On the deposit page you can choose from several purchase options, such as paypall, skrill, credit card and other methods. After that just click on the green button and wait for the payment to drop, some payment methods are instant.
Step 6 how to invest in bitcoin cryptocurrency
After dropping the money, just click on “Trading markets”, search for bitcoin and select the purchase amount. That way you can click on buy or sell on eToro. The platform is very intuitive, you will have no difficulties.
How to invest in Bitcoins with little money?
Most people ask this question when they are going to start investing in Bitcoins and the answer is very simple: you don't have to buy a whole currency. You can buy the way that is best!
If you want to buy in percentage, for example, 10% of a Bitcoin, it is possible. Likewise, it is possible to buy the equivalent of R $ 50 in Bitcoins.
As the cryptocurrency is being highly valued and reaching a value of US $ 20.000 it would be almost impossible for some people to acquire them, since this value is around R $ 100.000.
If your goal is to invest in Bitcoins with little money, you should look for a broker with a low minimum deposit, as it is common for brokers to stipulate a minimum amount for making deposits.
How to invest in Bitcoins quite safely?
Here are some tips that should be followed to make your investments safely:
Get to know the cryptocurrency market: this market has been in circulation for some time, so many people specialize in the business.
To invest safely, follow portals like Bitcoin's CryptoPanic and Reddit to stay up to date on the topic; follow personalities capable of adding values in your analysis, as is the case with Andreas Antonopoulos, Bitcoin analyst and author of several essays on cryptocurrency.
You can also listen on the Let's Talk Bitcoin podcast, if English isn't an obstacle for you, it's a great way to keep up to date.
Choose a secure platform, some examples of secure platforms are: Binance, Bitcoin Market, Foxbit and Revolution.
What is the value of Bitcoin?
The reality is that Bitcoin today it does not have a fixed value. Its value in relation to other currencies is determined by the balance between demand and supply for the currency. What does that mean? It means that the more people interested in the digital currency Bitcoin, the greater its value in the market. Let's cite a practical example:
In 2009 the cryptocurrency was worth $ 0,01. At the beginning of 2021, Bitcoin had its greatest history of value reaching US $ 30.000.
But what caused this overvaluation of the Bitcoin cryptocurrency? Several associated factors contributed to the growth of Bitcoin's popularity and appreciation. However, it is believed that the big lever was the announcement made by PayPal that it would allow buying and selling Bitcoin through its application, thus, it increased the public's curiosity about the cryptocurrency.
How to invest in Bitcoins na Foxbit?
There are currently three ways to purchase bitcoins efficiently: mining, buying from exchanges and buying directly from others.
- Mining: you will need a specific computer for this and give your computing power to the network, confirming transactions. In this mode, you will be rewarded for each block mined. At the moment it is not feasible to mine in Brazil, as the cost of electricity is very high.
- Buy Bitcoins in exchanges: this is the case of Foxbit, a website that brings buyers and sellers together in a safe environment and transactions are made anonymously and quickly.
- Buying bitcoins directly with others: it is not the most used because the risk of blows is very high.
How to invest in Bitcoins in the Bitcoin Market?
Another good investment platform is the Bitcoin Market. The minimum deposit amount is R $ 50,00, but there is a withdrawal fee of R $ 2,90 plus 1,99% and a minimum withdrawal of R $ 50,00.
This platform also allows you to make purchases and / or money transfers and send your cryptocurrencies to other virtual wallets to keep them safe with you.
Bearing in mind that, when investing little, it may take a little longer to obtain a profit that you consider reasonable, so it is necessary to remain focused and determined not to become demotivated over time.
OK a worth investing in Bitcoins?
When investing in Bitcoin we also invest in ideology. Bitcoin opens the door to a decentralized economy that can change our civilization and the way it interacts.
This cryptocurrency has come to facilitate the way in which money transfers can be made between people, especially in transactions across borders, which can be made at low cost and very quickly, regardless of the amount transacted.
Bill Gates, Microsoft co-founder says: “O Bitcoin it's an incredible technological feat. ”
However, before investing in Bitcoins it is necessary to weigh the risks and benefits.
What are the risks of investing in Bitcoins?
No investment is 100% secure. Everyone has risks and you will always be subject to some kind of violation!
Particularly in the Bitcoin and other cryptocurrency markets, you need to be aware that price variations are quite common. If in one day you invest R $ 500, you risk after a week verifying that Bitcoin has devalued and that your investment has been reduced to R $ 400. If with that in mind you feel comfortable investing in Bitcoin, then there is no reason not to do so.
The trend that has been historically observed is that, in the long run, investors who are patient are the most rewarded.
What are the bbenefits of investment in Bitcoin?
One of the great benefits of Bitcoin is precisely its exclusivity. Unlike traditional money, which can be printed according to the needs of Governments, there is a limit on the number of new Bitcoins that can be created.
Today, more than 18.000.000 BTC are in circulation. The maximum Bitcoins that can ever exist is 21.000.000 BTC, a number that will only be reached in the year 2140! This is because, unlike traditional money, the distribution of new Bitcoins is reduced every 4 years, due to a process called halving.
The new Bitcoins are distributed through a process known as mining. The fact that the number of Bitcoins is limited means that, theoretically, the value of these cryptocurrencies tends to be increasing. In addition, it is important to keep in mind that Bitcoin is a very recent technology, and therefore has a huge margin of growth.
How to use Bitcoins in Brazil?
Currently it is already possible to pay with Bitcoin in Brazil in more than 300 establishments. From stationery stores and computer stores, making Bitcoin trading and even restaurants and hotels.
A good way to get to know places that may accept Bitcoin as a payment method is the CoinMap website, which shows you the regions and payment locations available and information about them.
A great example of a large store that accepts payment in Bitcoin is Calvin Klein, more precisely in the state of São Paulo. This was only possible thanks to a partnership between Calvin Klein and the Foxbit platform.
What can I buy with my Bitcoins?
In reality, the answer is much simpler than you think: You can buy everything!
It is that nowadays you no longer need to buy only in stores that accept Bitcoin, as now there are also Bitcoin credit cards.
These cards make the direct conversion from Bitcoin to Reais (or any other currency) at the time of payment. This means that: the store owner does not have any additional work and you can pay with Bitcoin anywhere.
These cards can thus help accelerate the adoption of Bitcoin globally as a form of payment.
How to Live Aligned with the conversion of the Bitcoin protocols for Real?
The way to convert will always depend on the platform you have chosen to invest in.
Through a broker
If you invested through a broker it is very simple: you only have to ask for the withdrawal of your Bitcoin balance and the platform takes care of the rest. Usually the money is available within 1 to 3 business days in the same account you used to make your own. only consider that conversion rates may apply, as most international brokerages operate with Dollars.
Through a scholarship
If you invested through a stock exchange or if you have your cryptocurrencies in a digital wallet (wallet), you need to take an additional step.
The easiest way is precisely the one we mentioned in the previous point: using a Bitcoin cryptocurrency credit card. That way, you will need to send your Bitcoins (or any other cryptocurrency) from the exchange where you invested or from wallet in which you kept them for your credit card.
From there you can: use your Bitcoins to make payments in Reais anywhere and make withdrawals from Bitcoin to Real using your card.
Bitcoin and income tax: do I need to declare?
The answer is yes. You need to declare income tax on your cryptocurrencies, as they are seen as possessions. Remember that you do not pay taxes for having the currency itself, but for everything it can generate in terms of financial transactions.
The revenue quotes that cryptocurrencies are compared to financial assets.
When declaring income tax on your Bitcoins, remember to declare Bitcoin in the amount of your purchase. Generally speaking, anyone who has an equity increase that involves cryptocurrencies should make the statement.
This is because, according to the Constitution and the Tax Code:
- Income Tax is levied on any acquisition of income;
- Income acquisition is understood as an increase in equity that is the product of capital, labor or the merger of both;
- Income of any kind is understood as the acquisition of income.
Be careful. Let's say you have purchased 1 BTC through any broker. This amount must be declared in the Income Tax only for the mere acquisition of the currency.
Even if you do not have a salary declared in payslip or a source of fixed and active income, the declaration is important. In other words: even if you are a miner or an autonomous cryptocurrency trader, who receives “commission from outside”, declare.
What happens if I do not declare income tax?
The declaration is not mandatory, it is just a guideline. However, non-declaration can result in civil, legal, tax and even criminal penalties. But you only declare bitcoin if you deposit the profit you made with the currency into your bank account in Brazil.
Finally, we hope you understand the step-by-step how to invest in bitcoins. Buy in any of the options we quote are the best known in the market, we also have several other guides on how to invest and buy bitcoin in Brazil, we wait for you in the next post.