Learn How to Invest in Bitcoin in Brazil in 2024

With the growing popularity of cryptocurrencies, investing in Bitcoin has become an attractive option for many.  With the recent approval of ETFs and innovations such as Bitcoin ATMs and online casinos that accept the digital currency, the cryptocurrency space is more dynamic than ever. 

This guide aims to provide a comprehensive overview of how to start your Bitcoin journey, from choosing reliable exchanges to implementing security practices and understanding the market. 

Whether you are a beginner investor or someone looking to improve your strategies, this post is for you!

Is investing in Bitcoin in 2024 a good idea?

Even though some experts still insist on pointing out the risk of investing in Bitcoin, our verdict is the same: it is worth investing in Bitcoin in 2024!

There is no denying that Bitcoin has been the highest return on investment for long-term applications since BTC became popular and popular more than 10 years ago.

In November 2021, the price of Bitcoin reached its All Time High (ATH), reaching over US$69,000. And, even after the fall, it still has the strength to face the market and bring even more profits. Many gurus failed to make their predictions, so the most accurate Bitcoin strategy was the one that applied long-term and bullish technical analysis criteria.

There are a few factors that suggest that Bitcoin could continue to appreciate in 2024. The first is the growing institutional interest in cryptocurrencies. More and more companies and institutional investors are buying Bitcoin, which could increase demand and, consequently, the price of the coin.

The second factor is the growing adoption of Bitcoin by consumers and merchants. More and more people are using Bitcoin to purchase goods and services, which could also increase demand for the currency.

Top Reasons to Invest in Bitcoin in August

In the current economic scenario, we foresee an increase in the price of Bitcoin in relation to its current value, based on several solid reasons. 

Understanding market cycles is crucial, and the exuberant enthusiasm seen in 2021 was followed by a natural price correction. 

In this period of post-hype stabilization, a strategic opportunity to accumulate and invest emerges, highlighting the right moment to enter the market.

Bitcoin Halving will increase its value

The Bitcoin halving phenomenon is an event intrinsic to its structure of issuing new coins, occurring approximately every four years. 

This process consists of halving the reward granted to miners, directly impacting the supply of new cryptocurrency units. 

Halving is a feature built into the Bitcoin protocol designed to control its total supply. Every 210,000 blocks mined, the miners’ reward is cut in half. This systematic adjustment creates an artificial scarcity, positively impacting supply and demand dynamics.

The reduction in the rate of issuance of new Bitcoins resulting from the halving contributes to the perceived scarcity of the cryptocurrency. 

Historically, assets with limited supply tend to be more valuable, as evidenced by economic theory. This scarcity effect is one of the main drivers behind the expected appreciation of Bitcoin after each halving cycle:

• 2012 Halving: After the first halving in 2012, the price of Bitcoin experienced a notable increase, rising from approximately $12 to over $100 the following year.
• 2016 Halving: At the second halving in 2016, Bitcoin began a period of significant appreciation, peaking at around $20,000 in December 2017.

With the next halving scheduled to take place in 2024, Bitcoin’s price could see significant appreciation in the coming weeks. 

Technical indicators anticipate bull run

The use of technical indicators plays a crucial role in analyzing cryptocurrency market behavior, allowing investors to anticipate significant movements, such as the long-awaited “bull run”.

Some technical indicators can help us better understand the asset’s moments, to know exactly when the best times to invest are. Want to see?

RSI (Relative Strength Index)

The RSI is an indicator that measures the strength and speed of price changes. Values ​​below 30 indicate an oversold condition, while values ​​above 70 indicate overbought. 

In previous bull run scenarios, the RSI has been observed reaching high levels, indicating strong buying momentum.

Example: During the 2017 bull run, Bitcoin’s RSI frequently exceeded 70, reflecting the intensity of the uptrend.

MACD (Moving Average Convergence Divergence)

The MACD analyzes the difference between two moving averages, revealing changes in the strength of a trend. Positive crossovers (when the MACD line crosses above the signal line) are interpreted as signals of imminent bullishness.

Example: Before the start of the 2013 bull run, there were a series of positive crossovers on Bitcoin’s MACD, anticipating the subsequent appreciation.

Bollinger Bands

Bollinger Bands identify volatility and overbought or oversold conditions. During bull runs, widening of the bands is common, reflecting an increase in volatility associated with upward movements.

Example: At the start of the 2020 bull run, Ethereum’s Bollinger Bands expanded, signaling the start of an increasing price phase.

Trading Volume

Trading volume is a key indicator for validating price movements. Substantial increases in volume, especially during accumulation periods, often precede bull runs.

Example: Ripple’s sharp increase in trading volume in 2017 preceded a notable cryptocurrency bull run.

Graphic Patterns

Patterns such as flags, wedges, and symmetrical triangles often indicate future price movements. During bull runs, the formation of these patterns can be a signal of a continuation of the uptrend.

Example: The flag pattern formed on the Litecoin chart in 2019 anticipated a significant appreciation.

BTC trading volume is growing

Post-hype stabilization not only indicates market maturation, but also represents a strategic moment for entry. 

During this phase, investors have the opportunity to acquire assets at more attractive prices, capitalizing on emerging stability ahead of potential value surges.

Bitcoin has proven itself over time to be a valuable addition to diversified portfolios. Its decentralized nature and resistance to inflation position it as a solid store of value, especially in volatile economic environments.

To illustrate the effectiveness of this strategic timing, we look at historical cases where post-hype stabilization preceded notable price increases. 

The post-2017 period, for example, offered significant profit opportunities for investors who capitalized on the subsequent recovery.

BlackRock creates new Bitcoin ETFs

Bitcoin Exchange-Traded Funds (ETFs), listed on exchanges, are emerging as significant catalysts for the expansion and legitimization of the crypto ecosystem. 

With the launch of the Bitcoin ETF by BlackRock, the cryptocurrency market is increasingly busy and Bitcoin has been facing new scenarios.

Just one week after BlackRock launched its Bitcoin ETF, the fund has reached an incredible $1 billion in assets under management. According to the firm’s head of asset management, the iShares Bitcoin Trust (IBIT) is living up to all expectations, with the firm already planning ahead for the ETF.

According to BlackRock’s website, as of January 18, 2024, the fund held 25,067.06170 bitcoins, which was worth US$1,060,712,715.95.

Additionally, the Bitcoin ETF fund was trading at $24.42, with around 14 million shares being traded on the exchange. The astonishing numbers could herald new times for Bitcoin and the cryptocurrency’s market price.

Bitcoin could become a mainstream form of payment

Bitcoin has the potential to become a mainstream form of payment, but there are some challenges that need to be overcome.

One of the challenges is Bitcoin’s volatility. The price of Bitcoin can fluctuate significantly in a short period of time, which can make it difficult for merchants to accept the currency as payment.

Another challenge is the lack of widespread acceptance of Bitcoin. Currently, only a limited number of merchants accept Bitcoin as a form of payment.

However, there are a few factors that suggest that Bitcoin could become more popular as a form of payment. The first is the growing institutional interest in cryptocurrencies. More and more companies and institutional investors are buying Bitcoin, which could increase demand for the currency and, consequently, its acceptance.

The second factor is the development of new technologies that can make Bitcoin easier to use and accept. For example, the Lightning Network is a technology that can improve the speed and efficiency of Bitcoin transactions.

If these challenges are overcome, Bitcoin has the potential to become a mainstream form of payment. However, it is still too early to say whether this will actually happen.

Will Bitcoin appreciate or correct?

The recent approval of ETFs (Exchange-Traded Funds) for Bitcoin was accompanied by a peculiar context, where the news was already “priced in” by the market, according to analysts. 

Furthermore, a security incident involving the publication of fake news on the official profile of the SEC (US Securities and Exchange Commission) on the former Twitter (X) last Tuesday, 9, had immediate repercussions on the cryptocurrency market. 

Analysts highlight that the approval of ETFs was already widely expected by the market, resulting in a situation where the news was “priced in”. 

This means that market participants had already incorporated expectations of approval into asset prices, minimizing volatility at the time of confirmation.

Although the approval of ETFs does not result in an immediate market reaction, experts highlight that the inflow of new capital provided by these instruments can generate positive pressure on the price of Bitcoin in the medium and long term.

How to learn to invest in Bitcoin in the markets?

Bitcoin was the first cryptocurrency on the market and the only one present on all crypto exchanges in the world. It is available in Brazil on the main platforms on the market, such as Binance, Bitso, Kucoin, among others.

While Bitcoin can be used to make purchases, most people still use Bitcoin as an investment option, much like they invest in stocks and bonds. It is considered by its holders to be a store of value and referred to by its supporters as “digital gold.”

With the popularity of cryptocurrency, there are now several materials on the internet to teach new investors. Here at Criptofácil, we provide written materials on How to start investing in Bitcoin , as well as videos published on our Instagram page .

How to invest in Bitcoin?

Before you start investing in Bitcoin, you first need to be aware that cryptocurrencies are volatile investments, which means that cryptocurrencies make gains and record losses very quickly. 

Furthermore, the cryptocurrency market never closes, unlike the traditional stock market, which has a set opening and closing time, pausing trading.

Furthermore, cryptocurrency trading platforms now require investors to verify their identity, which includes submitting documents such as their CPF. Finally, the IRS requires that investments and profits obtained from cryptocurrencies be declared in the Personal Income Tax.

With that in mind, just follow the steps:

What does it take to start investing in Bitcoin?

• Photo ID, such as ID card, passport or driver’s license
• CPF number
• A bank account registered as a personal account (some exchanges also accept international credit cards as a deposit method)
• Internet connection
• A computer or mobile device
• A verified account on a trusted exchange (Check out the best brokers to buy Bitcoin here )
• A trusted wallet

Step 1: Choose a trusted exchange to invest in Bitcoin

It may seem like silly advice, but choose a trustworthy exchange with a good exchange fund report and choose one that is already renowned in the market. 

One of the main Exchanges in Brazil to buy cryptocurrencies cheaply is Binance.

However, there are more than 500 exchanges worldwide that carry out Bitcoin buying and selling operations. You can check the fees for each one on the companies’ official website.

When choosing an exchange, check which other cryptocurrencies are available for trading and create your account on the exchange that best suits your strategy. You can invest in cheap cryptocurrencies other than Bitcoin to build your capital.

Step 2: Set up a cryptocurrency wallet

To increase the security of your investment strategy, it is best to avoid leaving your cryptocurrencies deposited on the exchange. Bankruptcy cases such as FTX and hacker attacks can put your investments at risk.

The main wallets on the market are online wallets, Bitcoin Wallet, Phantom, Meta Mask and Bitcoin Core. Among physical wallets, the main one on the market is Ledger.

Step 3: Make a deposit to the exchange

Before you can start trading Bitcoin, you will need to deposit an amount of fiat currency. Most exchanges only accept deposits via wire transfer, originating from bank accounts under the same ownership. In Brazil, this deposit can be made via PIX or TED.

However, some larger exchanges, such as Binance, already accept deposits made with an international credit card, which must be in the name of the same person who registered the account.

Start with low amounts and increase your investment as you improve your strategy.

Step 4: Make your first purchase

If you’re used to investing in stocks, the process for investing in Bitcoin will be familiar. To start investing, simply find the cryptocurrency on the exchange and click “buy.” 

Some exchanges have pre-defined prices, while others allow you to place your bid for the asset and the purchase will be completed when the cryptocurrency reaches the chosen price. You can also place multiple purchase orders with different amounts that will be settled automatically.

Step 5: Keep an eye on your investment

For long-term investments, it is best to transfer the purchased cryptocurrency to a wallet. It is also important to remember to keep an eye on the value of the asset to avoid large losses of the invested amount.

Conclusion

Learning how to invest in Bitcoin is not just about following trends, but understanding the strategies, challenges and opportunities that this innovative asset class presents. 

By choosing reliable exchanges, implementing security practices, and understanding market signals, you will be better equipped to navigate the exciting world of Bitcoin. Remember, the key to success lies in continuous education and adapting to the dynamic changes in this ecosystem.

May your Bitcoin investment journey be filled with discovery, growth, and of course, positive returns. Invest wisely!

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