The 26-year old was a reported target for Arsenal during the transfer window, although he opted to remain in Germany and signed a five-year deal with Dieter Hecking's side.
In making the move, Gustavo has sacrificed playing in the Champions League, but he believes he has made the right switch despite a lack of European football.
"It was hard at first to make the decision as we humans have something called vanity or ego," he told ESPN Brazil.
"It took me a long time to reach a big club, play the best competitions and like it or not, I joined a club that are not playing in the Champions League."
Gustavo has earned a reputation as a tough-tackling midfielder, but he says he is able to focus his aggression on bringing out his best performances.
"I am a calm person, everyone has one's own history. Mine was always fighting and I am fully capable of wearing the shirt of a more well-known club. But it makes no difference to me," he said.
"Wolfsburg are a top club in Germany, a club fully capable of showing this year and in the next years that they will be able to play in European competitions as they have a very good project."