How to Exchange Cryptocurrency Using PIX
Exchanging one type of cryptocurrency for another, as well as for fiat money, often involves additional expenses and takes considerable time. In the context of high competition in financial markets, new payment systems are emerging that allow for fast payments with minimal commissions. One such system is the Brazilian PIX system.
Brief Overview of the PIX System
PIX is an electronic instant payment system created by the Central Bank of Brazil. Its main goal is to provide easy and quick access to national-level financial transactions.
Purpose and Functionality
The main purpose of PIX is fast transfers and payments between the sender and recipient, bypassing intermediaries.
Participants in PIX (whether financial or payment institutions) carry out transactions mainly through mobile applications and online banking platforms. A PIX transaction is usually initiated using a predefined pseudonym or QR code associated with the recipient's transaction account. From bank to fintech, from fintech to payment institution, etc., PIX conducts transactions:
Person to Person (P2P)
Person to Business (P2B)
Business to Business (B2B)
Person to Government (P2G)
Business to Government (B2G)
The payer will need to use the recipient's PIX pseudonym or key. A key is information that uniquely identifies the recipient's transaction account. For individuals, keys or pseudonyms can be:
Personal data, such as CPF number, email address, mobile phone number;;
A randomly generated key (such as UUID);
Static or dynamic QR code, NFC contactless payment.
Intersection of PIX and Cryptocurrency
When the payment system began to gain momentum and was used by up to 80% of Brazilians, the Central Bank began receiving proposals from cryptocurrency platform owners for access to the system. The Central Bank of Brazil positively accepted the initiative and granted access to exchanges regulated by the Central Bank. Thus, PIX system participants gained access to cryptocurrency operations.
Advantages and Disadvantages of the System
This system has many undeniable advantages and only two, but significant, disadvantages.
Advantages
Instant transactions – on average, a payment or transfer takes 10 seconds.
Minimal commissions or their absence.
The system notifies that the payment has been made or the transfer delivered.
No minimum amounts for transactions (from 0.01 Brazilian real).
Transaction confidentiality, high level of security.
Available 24 hours a day, 7 days a week, including holidays.
Ability to set a maximum transfer limit for a certain period or a specific user.
Disadvantages
The main disadvantage of PIX is that the system is only available to users within Brazil, limiting its application at the international level. PIX was created specifically to stabilize Brazil's financial system. One of the goals of creation is to preserve and attract capital. The main condition for joining the system is having an account with a Brazilian bank.
To conduct fiat money transactions, a tax identifier CPF is also required, similar to the Russian INN. However, an identifier is not needed for operations with crypto, which is used by crypto communities, fintech companies, and other intermediary services. They have representation or other presence in Brazil and provide individuals and legal entities from other countries with access to this convenient and profitable system.
Another limitation – PIX was developed specifically for the financial market and does not provide the possibility for smart contracts or automated payments, which may be a limitation for some cryptocurrency operations.
How to Exchange Cryptocurrency Using PIX
Since the system requires a bank account, you initially need to determine the community or project offering such an opportunity. Acting as intermediaries, they may set their own commissions and conditions for using the service. Despite the fact that services earn on this, commissions and withdrawal or replenishment times are significantly lower than direct withdrawals from exchanges.
The key criterion when choosing a platform is a bank account. You should only choose a partner that provides the opportunity to open a bank account directly in the user's name.
Typically, such services offer to install an application on a mobile phone and register. This means you can independently manage your account with your smartphone, buy and sell cryptocurrency, pay in stores, and get cash from ATMs.
After downloading the app, the user fills in the suggested fields.
The verification process is necessary for the partner to open an account.
For this, you need to photograph identity documents and upload them to the app. After registration, you will be granted access to the app, where you can create payment requests and make transfers. However, it is important to note that for converting cryptocurrency to PIX and vice versa, the use of additional services and exchanges may be required.
Step-by-Step Guide to Exchanging Cryptocurrency Using PIX on Exchanges
To start using PIX for cryptocurrency exchange, you need to top up your bank account. It is better if the account is multi-currency – all operations for buying crypto are carried out in Brazilian reals, and you will still have to convert this money into another, more convenient currency.
You can do this by installing the bank's app or through the intermediary partner's app that is already installed.
Choosing a Cryptocurrency Exchange
Then you need to choose an exchange that is compatible with PIX.
The Central Bank of Brazil has granted access to its national payment system only to those exchanges that are regulated by this Central Bank.
After choosing an exchange, you need to create an account on this platform, verify your identity, and you can start buying cryptocurrency.
Conducting the Transaction
Step 1. Deposit Funds
Open the platform for buying cryptocurrency and log into your account.
Find the "Buy Cryptocurrency" button and click on it.
In the dropdown menu, select the "Deposit Fiat Funds" option.
Step 2. Transfer Funds
In the opened window, select PIX as the transfer method.
Specify the amount you want to transfer to cryptocurrency in Brazilian real (BRL).
Continue the process by completing the transfer of BRL from your bank account to the corresponding account on the platform.
Step 3. Buying Cryptocurrency
After completing the transfer and crediting BRL to your account on the platform, find the cryptocurrency you want to buy.
Use the search function or go to the corresponding cryptocurrency category.
Select the desired cryptocurrency and click on it to open the trading page.
On the trading page, specify the amount or number of cryptocurrency you want to purchase.
Confirm your PIX transaction.
Once the cryptocurrency appears in your balance, consider the purchase complete.
The same principle applies to exchanging cryptocurrency for fiat money. Repeat the same steps through the "Withdraw Funds" option.
Cryptocurrency Transactions Through Exchangers
Exchanging cryptocurrency using exchanges may seem complicated and multi-step to some. It's much simpler and more convenient to use cryptocurrency exchange services.
Many exchangers today realize the benefit of integrating the PIX payment system, and the NovaChange service is among them.
This convenient and reliable cryptocurrency service allows you to exchange coins at the most favorable rate, quickly and with minimal commissions.
Importantly, you can exchange any coins for tokens and fiat without registration.
However, registered users of the NovaChange exchange service are offered a profitable loyalty program and a bonus system.
One of the key advantages of the NovaChange service is its ease of use and intuitive interface. Even beginners can easily master the platform and carry out exchange operations without needing help.
In addition, NovaChange offers round-the-clock user support, ready to help in case of questions or problems. The service team values each client and strives to provide the most comfortable and pleasant interaction with the platform.
Security
The PIX system is not built on blockchain technology but has many of its attributes. The principles of security are based on Brazilian laws: the General Law on Protection and the Law on Banking Secrecy. Thanks to this, you do not need to worry about the possible leakage of data related to your credit cards. PIX is also available to all, not just the banking audience. In addition, there are effective mechanisms for combating fraud, such as established restrictions on transfers and a one-hour delay system for suspicious operations.
Conclusion
PIX is a convenient and reliable platform for cryptocurrency exchange. By following the above guide, you can easily and safely conduct transactions using PIX. And don't forget about security measures to protect your account and funds.