It is native to the Amazon River drainage in Brazil, Peru, Paraguay, Bolivia and northern Argentina.

The fish can be found in slow moving or still backwater including, ponds, small lakes, and streams.

In the wild, it forms aggregations around vegetation and tree roots, and thrives when the water temperature is 22–27 °C (72–81 °F).

Instead of swimming smoothly or for long distances at a time, Serpae Tetras move in relatively short spurts, unless stressed.

If any aggression is seen in the fish, it is usually among conspecifics, especially if they are kept in large groups where they can establish a pecking order (a behavior similar to Puntius tetrazona).