Using crypto to deal with the loss of purchasing power of the Brazilian real does not mean finding a guaranteed hedge against inflation.

Digital assets can be part of a diversification strategy, but they also involve volatility, costs, custody risks, currency exchange variations, and potential tax implications.

Among the most well-known alternatives are stablecoins pegged to the dollar, Bitcoin, and protocols that offer some type of yield on digital assets. Each works differently and requires its own caution before making any decision.

In this article, you will understand what options typically appear when the topic is preserving value with crypto, what to review before converting reals into digital assets, and what risks need to be factored into the calculation.

For those who are starting to explore this universe, belo's app can help follow the options to receive, convert, and move digital assets.

The context: assets in reals and foreign exchange exposure

Anyone who keeps all of their assets denominated in reals is exposed to variations in the currency's purchasing power over time. Inflation and exchange rate fluctuations affect the real value of any financial reserve, regardless of where it is kept.

Crypto assets, especially stablecoins pegged to the dollar, have come to be considered by some people as a diversification alternative. 

But it is important to understand that this alternative also carries its own risks, which differ from those of the traditional banking system. Before making any decision, it is worth understanding how each asset works and what can go wrong.

This article is not a financial recommendation. For investment decisions, consult a specialized professional.

Stablecoins, Bitcoin, and yield tokens: what each one is

Stablecoins like USDT and USDC are tokens whose value seeks to be pegged to the US dollar in a 1:1 ratio. 

Anyone who converts reals into USDC gains exposure to the dollar without needing an offshore account. The conversion conditions, costs, and spreads vary depending on the platform used. Before converting, check the values shown on the screen.

Bitcoin works differently: it is an asset with high volatility and no parity with any currency.

Anyone considering it as part of a diversified portfolio must accept that the price can fluctuate significantly in either direction. It is not suitable for those who need short-term predictability.

Yield tokens in DeFi protocols offer returns on stablecoin deposits, but they carry additional risks that include smart contract failures, loss of token peg, and a lack of regulatory guarantees. 

For beginners, operational complexity is an important factor to consider.

What to review before converting reals into digital assets

Before buying any crypto-asset, it is worth understanding your current financial situation. What percentage of your wealth would you be willing to expose to assets with a risk of total loss? This is the most important question before any allocation.

Some practical points to review:

• What is the conversion cost (spread) on the platform you are going to use?

• How does custody work? Who holds the private keys to your assets?

• What is the exit liquidity? Can you convert back to reals when you need to?

• What are the tax obligations involved in your situation?

Custodial platforms keep your private keys, which facilitates access but centralizes risk in a single company. 

The choice between self-custody and platform custody depends on the value involved and your level of familiarity with the ecosystem. To understand how belo handles custody, consult the help center.

Recurring purchases as a way to reduce timing risks

A common approach for those who want to build a position in digital assets without trying to time the market is to make purchases in fixed amounts and at regular intervals, which experts call DCA (Dollar Cost Averaging).

This smooths out the impact of exchange rate volatility over time.

On belo, it is possible to follow via the app alternatives to convert and move digital assets, with the amounts displayed before confirming each operation.

Comparison: types of digital assets for diversification

Asset · Key Characteristic · Main Risk · Usage Profile

Stablecoins (USDT, USDC) · Target dollar parity · Issuer solvency, de-pegging · Dollar exposure without an offshore account

Bitcoin (BTC) · Scarce digital asset, high volatility · High volatility in any direction · Long-term diversification with risk tolerance

DeFi yield tokens · Returns on protocol deposits · Smart contract, illiquidity, no guarantee · Users familiar with DeFi

Risks that need to be factored in

Stablecoins can lose their peg to the dollar in times of market stress. De-pegging episodes have already occurred in major stablecoins, and while restoration of parity can happen, it is not guaranteed.

Diversifying across different stablecoins can help reduce exposure to a single issuer, but it does not eliminate market, liquidity, custody, or platform risks.

Regarding taxes, transactions involving crypto assets can have tax implications in Brazil. The rules vary depending on the type of operation, the asset used, and each person's situation.

Consult an accountant or official source before operating or choosing how to declare these values. Do not make tax decisions based solely on blog content. For questions about tax returns, Receita Federal is the official source.

Want to follow alternatives to convert and move digital assets more clearly? Download the belo app and check the features available for your account and country. Before operating, review the rates, prices, costs, and terms displayed on the screen.

Frequently asked questions about protecting your reals from inflation using crypto

What is the minimum amount that makes sense to start with crypto assets?

There is no mandatory minimum amount, but it is important that conversion costs do not consume too large a portion of the initial value. Before executing a transaction, check the costs displayed on the platform and evaluate whether they make sense for the amount you intend to allocate.

Is it safe to leave cryptocurrencies on a digital platform?

It depends on the platform. Prioritize platforms with public audits, a proven track record, and transparent custody information. Do not allocate more than you can afford to lose on a single platform. To understand how belo works, check the help center.

How to declare crypto assets on the income tax return?

Receita Federal requires the declaration of crypto assets above certain limits. Rules vary depending on the type of asset and the operation. Consult an accountant or the official source of Receita Federal to understand the obligations that apply to your specific situation.

Can stablecoins lose their peg to the dollar?

Yes, de-pegging events have already occurred with relevant stablecoins in the market. Regaining the peg depends on the issuer's solvency and market conditions. Diversifying among different stablecoins can reduce the concentration of risk in a single issuer.

How much of my assets should I allocate to crypto?

This is a personal decision that depends on your financial situation, risk tolerance, and goals. This content is not a financial recommendation. For asset allocation decisions, consult a specialized professional.