Young crypto investors in Brazil prefer low volatility

Brazil’s cryptocurrency market is shifting away from traditional speculative approaches and entering a new paradigm. According to a new research report by Mercado Bitcoin, this transformation centers around Generation Z investors under 24. Young investors are making crypto investments a regular part of their weekly financial routines, adopting strategies that minimize risk.

Market dynamics have moved beyond simple speculation. While trading volume on the Mercado Bitcoin platform increased by 43% year-over-year, Mondays remain the most active day for both new participants and trading activity, indicating a structural change in crypto usage.

Investment Behavior Changes by Age Group

Participation of investors under 24 in the crypto market has increased by 56% compared to the previous year. This rapid growth marks a strategic turning point for the sector. The key factor shaping young investors’ preferences is not risk tolerance but a search for security and stability.

This generation prefers stablecoins and low-volatility assets as entry points, fundamentally changing the structure of the crypto ecosystem. As noted in Mercado Bitcoin’s report, many young investors are turning to digital fixed income products, seeking alternatives to traditional banking services.

Income Level Determines Investment Strategy

The composition of investor portfolios varies significantly by income group. Middle-income users allocate 12% of their portfolios to stablecoins, while 86% are held in less volatile assets such as tokenized bonds. This distribution shows that risk management is directly linked to income security.

Lower-income investors follow a different strategy. They invest over 90% of their funds in traditional cryptocurrencies like Bitcoin. The expectation of higher returns and willingness to accept additional risk are the main factors influencing their choices.

Fabrício Tota, Vice President of Crypto Affairs at Mercado Bitcoin, explained these trends: “The Central Bank’s regulation of crypto and the rise of stablecoins have significantly increased Brazilians’ interest in digital assets.”

Digital Fixed Income Products Grow Rapidly

Products offered on the Mercado Bitcoin platform under the name Renda Fixa Digital (RFD) provide investors with tokenized slices of real-world income-generating assets. This innovative approach implements an “invisible blockchain” strategy, concealing the underlying blockchain technology from users.

By 2025, the trading volume of these products more than doubled. Mercado Bitcoin distributed 1.8 billion reais (approximately $325 million) to active investors on the platform. On average, RFD products provided 132% of Brazil’s risk-free benchmark interest rate, the Certificado de Depósito Interbancário (CDI). This return offers a compelling alternative to traditional banking products.

Other platforms in Brazil, such as Liqi and AmFi, also offer similar blockchain-based fixed income products, forming the foundation of a competitive market.

Central Bank Regulations Support the Crypto Market

The Central Bank of Brazil has recently implemented new regulations for crypto service providers. These rules require crypto exchanges to obtain licenses and establish certain capital requirements. Clarification of the regulatory framework is creating a secure environment for both institutional investors and individual users.

The Central Bank’s proactive stance indicates that Brazil’s crypto ecosystem has matured and is increasingly recognized as a legitimate financial instrument. As a result, crypto investments are evolving from risky speculation into a regulated and overseen financial category.

These developments strengthen Brazil’s strategic position in digital assets and accelerate the integration of the crypto sector into mainstream finance.