Mercado Bitcoin Review
Mercado Bitcoin is one of the major Brazilian players in the cryptocurrency space. They accept Real (BRL) bank transfers, which allows newcommers to enter the field. While we aren’t based in the country and this exchange requires local ID or the account creation process (so we can’t truly test it) we have seen a lot of mixed user comments. Still, we will try to give you our best review of this exchange.
Mercado Bitcoin Advantages
Few altcoins available – other than the most popular cryptocurrency Bitcoin, Bitcoin Cash and Litecoin are also present at Mercado Bitcoin. That being said, we would have loved to see Ethereum also supported, as this is the most popular currency used for Initial Coin Offerings (ICOs).
Has a wallet service – while this may seem like a mandatory element of an exchange, some companies only act as an intermediary – they accept deposits and send the coins to a wallet which you must create.
Very clear presentation of the fees – another thing which we like is the very clear and precise presentation or the fee structure. Yet another quiet obvious thing for some users, which in reality is not available at all exchanges. While not being a motor advantage of this exchange, it is a nice touch, which indicates the seriousness of their services.
Reasonable Real deposit fees – the 1.99% + 2 R$ charged by Mercado Bitcoin Is decent. It isn’t a spectacular as the free fiat currency deposits, which some exchanges haven, but it’s not as bar as other offers on the market. Keep in mind, bank transfers can be slow and include additional commissions.
Some positive user reviews – as we mentioned in the beginning, the user reviews on this exchange are mixed. That being said, most of them are rather positive. Customers simply appreciate a company, wiling to cater to the Brazilian market directly.
Mercado Bitcoin Disadvantages
Only suitable for Brazilians – the main con of many locally specialized exchanges is the fact they don’t accept foreign clients. Of course, this is not an issue for Brazians.
High trading fees – the costs of actually converting your Real to cryptocurrency (and vice versa) at… are higher than the ones provided at other exchanges. That being said, this is an entry level service for a specific region, which supports the local currency so this is understandable. The fees are 0.30% for market makers (traders placing orders in the book) and 0.70% for market takers (the ones who buy/sell directly at theater nest available price). As a comparison, Kraken charges 0.16% and 0.26% respectively.
No leveraged trading – Mercado Bitcoin does not provide trading on margin. This is quite understandable for an entry-level exchange, like this one. In case you are interested in the purely speculative aspect of Bitcoin, trading with a forex broker, like IG, is another option.
However, there are a lot of differences between the two types of trading. In short, forex brokers are usually much safer, but only suitable for short term trading. In order to get the full picture, please refer to our guide.
Few negative reviews – while most comments about Mercado Bitcoin are rather positive there are some users who have complaints. The main issues are slow processing of the account verification documents and slow trading activity. While we can’t test the service of this company, we can easily see the former thing being present – with Bitcoin’s recent raise in popularity such companies can easily be overwhelmed.
Mercado Bitcoin is one of the leaders in the Brazilian cryptocurrency space. The company accepts Real (BRL) deposits and facilitates trading in a few of the most popular coins. The costs of trading make this a non-preferable destination for active traders, but a decent entry-level company.
Sadly, we couldn’t test the trading platform provided by this exchange, as we couldn’t create an account. Overall, this shouldn’t be a concern for most traders, as the active ones will definitely be turned off by the high trading fees.
The main issue with most crypto-exchanges is the inherit risk of the system. Hacks have occurred even at the most reputable exchanges (for their time), not to mention the insane price volatility. As we mentioned above, some forex brokers, like HYCM, are offering Bitcoin trading. That being the case, some of them are also very risky. This is why we always recommend dealing with a well-regulated company – click below to see a list of such brokers.
Mercado Bitcoin Review Conclusion
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