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How to invest in dollars | Bitcoin Portal


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The Real has become the worst performing currency among emerging countries against the dollar. This strong devaluation of the Real ends up calling attention to the urgency of investing in dollars, even if it is a small part of our equity. Especially when considering its upward trend in the last 10 years.

Dollar quotation in the last 10 years.
(Source: TradingView)

Contrary to what many people imagine, the behavior of the dollar exchange rate has great impacts on the Brazilian economy, especially on the price of products. After all, Brazil needs to import several products from abroad, mainly electronics, machinery and agricultural inputs, and some commodities such as Refined Oil.

Therefore, a rise in the dollar reduces the purchasing power of the Brazilian population, especially the most disadvantaged. This directly impacts the price of beans, soybeans, corn, rice and many other food products. In addition, it also makes the cell phone, computer, car and many other consumer goods considered “durable” more expensive.

This problem makes evident the need to “dollarize” at least part of the patrimony. That is: buy assets that are exposed to the American currency to protect themselves from the devaluation of the Brazilian currency. But how should this be done? Do I have to run to an exchange office?

There are several efficient ways to invest in dollars. But unfortunately, the US currency is only seen as a means of speculating in the short term, while it should be used for protection, investing in good foreign companies and helping to build equity in the long term.

You don't invest in dollars just by buying dollars

There are basically two ways to buy dollars: on the stock exchange and at physical brokers. The commercial dollar, which is the one we see on Google, or which is advertised in the Jornal Nacional, is used on the stock exchange and in financial exchange operations, being considered the official quote.

In the physical broker, the dollar used is Tourism, which naturally is more expensive than the commercial one, as it involves costs of transportation, storage, security and also of the exchange agency itself. The tourism dollar is more used by those who want to travel and are in need of cash.

Tourism Dollar vs Commercial Dollar
(Source: Melhorcambio)

Explaining this difference is necessary, as many people believe that the only way to invest in dollars is by buying in exchange offices and keeping them on the mattress. In addition, they end up paying dearly for this difference. Buying physical dollars is one of the most inefficient ways to start dollarizing your equity or investing abroad.

In addition, it is possible to pay cheaper in the dollar when buying it on the stock exchange at brokerages like XP and Clear. However, trading dollars on the stock exchange can be complex and also inaccessible for those who do not understand the financial market.

The fact is that there are better ways to expose your assets to the dollar, which means not just buying the currency and leaving it to appreciate. It is possible to buy assets that are quoted in dollars, as they will also appreciate with the appreciation of the currency.

How to invest in dollars and assets abroad

One of the best ways to invest in dollars is through the purchase of assets that have their reference price in dollars. For example: Gold rises whenever the dollar appreciates, because its reference price is based on the US currency. That is, in addition to being exposed to the asset's appreciation, you are also exposed to the dollar.

The same logic also applies to stocks, gold, government bonds and Bitcoin. But the question is: how to buy these assets? And that's where the problem begins. Therefore, many people simply prefer to buy the dollar and keep it on the mattress. The good news is that investing abroad has become much easier in recent years.

If you want to buy shares abroad, it is possible to start exposing yourself in dollars at the Avenue and Passfolio brokers, which accept transfers in reais and enable the conversion to dollar on the platform. From there, it is only the person to choose the asset he wants, whether it is a stock, or an index.

My portfolio, for example, consists of shares in Amazon, Apple and Google, in addition to having an index that replicates the Gold variation. The only problem is with brokerage fees, which are usually around $ 1 per transaction.

A simple way to buy dollarized assets is also by purchasing Bitcoin. The reference price of the digital asset is always in dollars. Those who bought Bitcoin in 2020 managed to take advantage of the high dollar, which rose more than 47%. In Brazil, it is extremely easy to buy Bitcoin.

It is also possible to invest in Gold by buying it directly from physical distributors such as Parmetal and OuroMinas. In addition, it is also possible to expose yourself to Gold on Avenue or XP Investimentos, either through indexes or funds that have exposure on it.

Build your position slowly and slowly

First of all, take it easy. You don't invest in anything with haste. For example, if you decided to invest abroad, build your position little by little, buying some every week or every month. Dividing the assembly into different orders helps to reduce the investment risk through the average price strategy.

By opening several assembly windows, it is possible to take advantage of falls in the dollar price or to smooth upward movements in the exchange rate. That is, you create a better price by placing purchase orders at different times.

In addition, if you are thinking of investing abroad, have a long-term vision focused on building and protecting assets. After all, the main objective is to maintain a strong purchasing power against the world average, invest in good international companies and also protect against a devaluation of the Brazilian currency.

* Text written by Lucas Bassotto and originally published by the Investificar website.

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