Is Mercado Bitcoin a Good Crypto Exchange for Beginners?
It is important for novice cryptocurrency traders to choose the right crypto exchange. Not all companies can be used when you are just starting your path in trading, which is why the success in cryptocurrency trading depends on making the right choice. Beginners often wonder whether Mercado Bitcoin is a good crypto exchange to start trading with. In this article you will learn whether Mercado Bitcoin is good for beginners, what its pros and cons are and what a novice trader needs to know.
Short summary about the broker Mercado Bitcoin
Mercado Bitcoin is an exchange for active cryptocurrency trading and investing in non-standard cryptocurrency instruments. It focuses on Latin American investors. The platform was founded in 2013 in Brazil, and today it has over 3 million clients. According to CoinMarketCap, an analytical portal, the exchange is among the top 100 largest exchanges in the world with a trading turnover of about 4-5 million USD per day. There are such tools for active trading as several dozens of cryptocurrencies paired with the Brazilian real, including BTC, ETН, and trending cryptocurrencies such as LINK, Sol, Aave, and AVAX.
| 💰 Account currency: | The main currency is the Brazilian real |
| 🚀 Minimum deposit: | From 50-100 Brazilian reais, depending on the instrument |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
Mercado Bitcoin Pros and Cons
👍 Advantages of trading with Mercado Bitcoin:
•The low entry threshold is 50 Brazilian reais.
•Fee Policy. The platform offers one of the lowest spreads in the region for major cryptocurrency instruments paired with the Brazilian currency (BRL).
•Investment instruments, availability of. Investors can earn from DeFi assets, NFT tokens, and unique tokenized investment portfolios.
•Legality. The exchange operates following Brazilian legislation and is controlled by the local regulator.
•Security. Account and wallet protection methods protect against hacking and reduce the effects of Distributed Denial of Service (DDoS) attacks.
👎 Disadvantages of Mercado Bitcoin:
•The payment methods are focused mainly on Latin American investors. Traders in other regions must use transit accounts, which means extra commission costs.
•No other drawbacks were found.
What is a Good Crypto Exchange for Beginners?
In order to choose the right broker for a beginner, you need to consider several aspects.
Here are the main ones:
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Education. It is important for novice crypto traders to learn how to trade. An exchange can offer educational courses, video tutorials, articles, webinars, etc. The more learning opportunities there are the better.
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Availability of a demo account. You will need this account to practice. It provides an opportunity for a beginner to trade risk free and try out trading strategies.
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Availability of a simple method to buy cryptocurrencies. An exchange service or a P2P exchange would be an advantage for an exchange.
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Low fees. The level of income of the trader depends on the level of the fees. Therefore, it is important to choose a company that charges minimum fees. Crypto exchanges mostly use the Maker and Taker fee model. It is important that you study them.
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Instruments for passive investing. In addition to active trading, passive income is also important for beginners. Pay attention to availability of copy trading or staking.
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Trading platform. It is important for a novice trader to choose the simplest trading platform that will be easy-to-use for trading.
In addition to these factors, you also need to consider how customer support operates, as it will also be important. Bonuses for beginners are also a nice perk.
Trading Conditions for Mercado Bitcoin Users
Before you start working with an exchange, it is important that you evaluate its trading conditions. Mercado Bitcoin offers traders the following conditions.
| 💻 Trading platform: | Proprietary platform |
| 📊 Accounts: | Unified account, but different types of sub-accounts depending on varying conditions |
| 💰 Account currency: | The main currency is the Brazilian real |
| 💵 Replenishment / Withdrawal: | Cryptocurrency e-wallets, cards, bank transfers |
| 🚀 Minimum deposit: | From 50-100 Brazilian reais, depending on the instrument |
| ⚖️ Leverage: | 1:1 |
| 💼 PAMM-accounts: | No |
| 📈️ Min Order: | Depends on the instrument |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptocurrencies |
| 💹 Margin Call / Stop Out: | No |
| 🏛 Liquidity provider: | No |
| 📱 Mobile trading: | Yes |
| ➕ Affiliate program: | No |
| 📋 Orders execution: | n/a |
| ⭐ Trading features: | Investment programs available |
| 🎁 Contests and bonuses: | Yes, bonuses from the Traders Union as rebates |
Commissions and Fees
The size of commissions and fees is also an important factor of choice. Traders Union analysts have prepared a short review of Mercado Bitcoin commissions and fees. In this section, you will find trading fees of the exchange as well as withdrawal fees.
The analysis by the Traders Union experts of the fee policy showed that it is difficult to determine the exact level of commissions and make a comparative analysis with other exchanges. Mercado Bitcoin has no classic maker/taker commission, but there are commissions for order execution on individual assets. The average commission ranges from 0.4%-0.7% per transaction.
| Account type | Spread (minimum value) | Withdrawal commission |
| Standard | From $9 | N/a |
Investment programs of Mercado Bitcoin
It is important for novice traders not only to trade actively, but also earn passive income. Passive investing can help you earn extra profit, and also compensate for the losses you may incur as a result of active trading. Mercado Bitcoin offers the following passive income options.
Investment Programs, Available Markets, and Products of the Crypto Exchange
Mercado is a cryptocurrency platform that constantly develops key investment areas. Therefore, the exchange's offers are constantly updated with new products that represent the so-called high-yield investment program (HYIP) ideas that are currently the most popular in the cryptocurrency industry.
Mercado Bitcoin is the leader in South America's cryptocurrency investment industry
Investment products of the Mercado cryptocurrency platform are:
Tokens de Precatório. A portfolio of assigned debt of individuals to legal entities. The investment period is up to 13 months, yield is up to 20% per annum.
Tokens de Consórcio. These are tokenized assets representing shares of a financial consortium. The investment period is up to 13 months, yield is up to 20% per annum.
Vasco Token and Token da Vila are tokens linked to situational events. For example, Vila Token is a digital token of the Brazilian club Santos, whose investor receives a part of the transfer value of a player when he moves to another club.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of thedeal and all the steps from signing up to withdrawal of profits.
Mercado Bitcoin’s affiliate program:
At the moment, the marketing policy doesn’t provide for attracting customers through an affiliate program. Changes are possible in the future.
Conclusion. Is Mercado Bitcoin good for beginners?
The Mercado Bitcoin cryptocurrency exchange will be an excellent choice for beginners. The exchange offers a convenient trading platform, which a beginner can learn to work with rather quickly. There is an excellent education center with a large number of materials for novice traders. Also, traders can earn passive income on good conditions. Therefore, Mercado Bitcoin could be considered as a good cryptocurrency exchange for a start.
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FAQ
What do I need to know about the fees charged by cryptocurrency exchanges?
The majority of cryptocurrency exchanges use the Maker/Taker fee model. As a rule, they use a multi-level system for traders that depends on the trading volume. The higher the trader’s trading volume, the lower the fees.
How do I choose a reliable cryptocurrency exchange?
Crypto exchanges mostly operate without licenses, as the majority of countries haven’t adopted legislation to regulate them. In order to choose a reliable exchange, you need to find out about its reputation and read the reviews about user experiences with it.
How many cryptocurrencies could a crypto exchange offer?
The number of cryptocurrencies on the listing of a cryptocurrency exchange may be very different. Some platforms offer less than 10, while others – several hundreds. It is important that you check the choice of cryptocurrency before registering on the exchange.
What are the risks of investing in cryptocurrencies?
Investing in cryptocurrencies carry high risks due to their high volatility. It could cause substantial losses, which is why it is important to observe the rules of risk management.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.