Generation Z of Brazil Redefines the Cryptocurrency Market with a Focus on Security

The way Brazil invests in cryptocurrencies is changing. It is no longer a scene dominated by traders betting heavily on volatile coins. Today, it is the younger investors—particularly Generation Z under 24 years old—who are shaping the market’s trajectory, prioritizing low-volatility assets such as stablecoins and digitized fixed-income products.

According to exclusive data from Mercado Bitcoin, Brazil’s largest cryptocurrency exchange, this transformation is deep and measurable. The participation of investors under 24 has grown by 56% compared to the previous year, marking the largest expansion of any age group in the country. This growth not only reflects new users entering the market—it signifies a fundamental shift in the psychology of Brazilian investors in digital assets.

Why Brazilian Youth Choose Security Over Speculation

The data reveal a clear pattern: Brazil’s Generation Z is using cryptocurrencies as a wealth preservation tool, not as a speculative vehicle. Digital Fixed Income products (RFD) exemplify this trend perfectly. These assets allow investors to acquire tokenized slices of income-generating instruments, combining blockchain innovation with the security of traditional investments.

In just 2025, the volume of RFD grew exponentially. Mercado Bitcoin distributed 1.8 billion reais—approximately US$ 325 million—to its users through these products. On average, they delivered returns 32% above Brazil’s risk-free benchmark rate, the Interbank Deposit Certificate (CDI), making them particularly attractive to risk-averse investors.

Other real asset platforms have also identified this demand. Protocols like Liqi and AmFi offer similar products, indicating that this is not an isolated phenomenon to Mercado Bitcoin but a consolidated trend in the Brazilian digital asset market.

Divergent Strategies: How Income Shapes Investment Choices

Investment behavior varies significantly according to purchasing power. Middle-income users tend to allocate up to 12% of their portfolios in stablecoins, maintaining 86% in less volatile assets—presumably in RFD. This composition reflects deliberate caution: protecting capital while seeking moderate returns.

The scenario reverses for lower-income investors. Over 90% of their funds flow into traditional cryptocurrencies like Bitcoin, revealing a greater willingness to accept volatility in exchange for higher potential gains. This difference is not merely statistical—it illustrates how access to capital modulates risk tolerance across the Brazilian income pyramid.

Brazil’s Generation Z demonstrates remarkable sophistication in this differentiation. It is not about ignorance of alternative investments but strategic choice based on personal economic circumstances. Fabrício Tota, Vice President of Cryptocurrency Business at Mercado Bitcoin, summarizes well: “Important events, such as the Central Bank’s crypto regulation and the rise of stablecoins, further fueled Brazilian interest in digital assets.”

The Market in Transformation

Additional evidence confirms the paradigm shift in Brazil. Mercado Bitcoin reported a 43% year-over-year increase in total cryptocurrency transaction volume. Interestingly, Mondays emerge as the busiest day for both new investors and frequent operations—a pattern suggesting a deeper transformation. Cryptocurrencies are no longer vehicles for nocturnal speculation but are integrated into people’s structured weekly financial routines.

This change coincides with significant regulatory movements. The Central Bank of Brazil introduced new rules for the sector last month, requiring cryptocurrency service providers to obtain specific licenses and meet clearly defined capital requirements. Far from deterring Brazilian Generation Z, regulation has reinforced confidence, legitimizing the space for cautious investors.

Brazil’s cryptocurrency story is being written not by traditional speculators but by a generation of young, pragmatic investors. They seek tools that work within their economic realities—whether stablecoins that preserve value or RFD that generate returns above inflation. Ultimately, this Brazilian Generation Z is teaching an important lesson: mature cryptocurrency markets are not defined by maximum volatility but by real utility and capital security.