If you have interacted with cryptocurrency fans, you can see their zeal and commitment towards these investments. However, many newcomers struggle with the complexity of blockchain, bitcoin and crypto in general.
A very common dilemma is if it is too late to buy bitcoin since one whole bitcoin is now pretty expensive for regular folks. And then the rookie investor is swarmed with questions if he could buy just a fraction of bitcoin and is that even possible? What is the smallest fraction of bitcoin I can buy, should I but just a small portion of bitcoin and so on.
If this is your predicament as well, keep on reading, we’re gonna sort it all out.
Bitcoin and Satoshis
Satoshi is the smallest original subunit of the famous cryptocurrency, Bitcoin. A Satoshi is divisible up to 8 decimal places. Satoshi is actually the only thing Bitcoin’s core software actually understands and recognizes as a unit. Bitcoin is just a human shortcut for 100 million satoshis. For Bitcoin Core (the main software that Bitcoin nodes run while maintaining the blockchain) there are only Satoshis, but for us humans – there is Bitcoin.
Yes, You Can Buy As Little As One One Hundredth Million of a Bitcoin
As a cryptocurrency enthusiast, you will be happy to know that you can buy a fraction of a bitcoin. You can own the smallest value of bitcoin amounting to 0.00000001 BTC, also known as the Satoshi. A bitcoin consists of 100,000,000 Satoshis, meaning that with 0.00000001 BTC, you still own bitcoin.
You can buy fractional shares of Bitcoin, and those fractional shares will increase in value each time the price of Bitcoin climbs. The best part is, you can buy as much or as little as you want and still profit from Bitcoin’s rising price.
However, bear in mind that if you really try to buy too small amount of bitcoin, the fees will eat up all of your coins. There are mandatory network fees (fees charged by miners) plus service fees of a platform that you used to buy those coins (for example, Coinbase, Binance, Cex.io etc)
What Is A Satoshi – a fraction of bitcoin?
Satoshi is Bitcoin’s smallest unit named after Satoshi Nakamoto, the man responsible for jumpstarting the blockchain protocol and the bitcoin cryptocurrency. Satoshi is one hundred million of bitcoin and helps to make bitcoin transactions easy and readable. In other words, one bitcoin is equivalent to 1000 millibitcoins, 1,000,000 microbitcoins, or 100,000,000 Satoshis.
How Many Satoshis Are In 1 Bitcoin?
You know every currency is broken down to the smallest unit. Therefore, a Satoshi is the smallest unit in bitcoin. A single bitcoin is made up of 100,000 million Satoshis, and you can purchase as many units as you can.
Do I Have To Buy A Whole Bitcoin?
No, you don’t. You can buy as little as you want but less than $10 will make no sens. At least $50 is what we would recommend (which will be around $35 after fees).
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What Is The Minimum Amount Of Bitcoin You Can Buy?
The minimum amount of bitcoin you can purchase depends on the current bitcoin price. Different platforms have different minimum amounts you can buy but most of them will allow you to deposit $10 and start buying (but again, such a small amount makes no sense as you will end up a dollar or two worth of coins after fees are paid).
What Percentage Of Bitcoin Should I Buy?
You should always invest an amount that you can afford to lose. Anywhere from 1%-10% of your net worth is worthwhile risking on this exciting but extremely risky investment asset.
How Many Fractions Of A Bitcoin Can I Buy At Once?
It boils down to your risk tolerance and your budget. You can buy as many fractions of a bitcoin as you wish or as little as you want. No one in the cryptocurrency market can stop you from purchasing the amount you want.
Is It Worth Buying a Fraction of Bitcoin?
If you believe that cryptocurrencies have a future (like we do), then yes. Bitcoin is increasingly being seen as a hedge against the inflation and mismanagement of fiat currencies, a censorship-resistant way to preserve your wealth, and a permissionless ticket into the world of high-level finance (this one is admittedly done via Ethereum blockchain, the second largest coin after bitcoin which is home to a slew of so called DeFi projects that essentially try and replicate the whole traditional financial ecosystem on a blockchain.)
Where Do I Go To Buy A Piece Of A Bitcoin?
Since bitcoin is a virtual currency used for digital purposes, you will need a bitcoin exchange to purchase one. Or you can try and earn bitcoin or buy it from someone you know. You can also buy it on bitcoin ATMs but they charge particularly high fees (10% or more).
You can buy your bitcoin from eToro, Coinbase, Robinhood, Bisq, Paxful, BlockFi, and other online cryptocurrency exchange platforms.
Here is a detailed guide on each of these platforms.
It’s a cryptocurrency platform that grew even faster than bitcoin itself. It is among the largest crypto exchange platforms by volume and one of the fastest-growing worldwide. You can buy crypto by depositing fiat (USD or some other state currency) via credit card or bank transfer (SEPA for EU).
Coinbase is a beginner-friendly cryptocurrency platform that enables crypto traders to buy and sell bitcoin. It has a worldwide reach of over 35 million users and is a gateway for many newcomers that than usually move their funds on other exchanges in order to trade them. You can deposits via CC, bank wires, ACH and some online payment processors.
Kraken is a crypto trading and exchange platform that supports both crypto to fiat buying and crypto-to-crypto trading. It has a presence in 48 US states and over 176 countries worldwide, listing 40 digital currencies available for trade. There are numerous deposit and withdrawals option with CC and bank wires being the most popular ones.
Founded by RetailFX in 2007, eToro is a social trading and multi-asset brokerage company that aggressively expanded into the crypto space as well. It also has its own crypto-only exchange (eToroX which we reviewed here and compared eToro vs eToroX here). eToro is very convenient for both buying and trading crypto since it has various payment methods and a very simple trading interface.
Some of the inquiries you may have include:
Can I buy $500 worth of Bitcoin?
You can buy any amount of bitcoin you want. And you can do it as many times as you want.
Can I buy $50 worth of Bitcoin?
Yes, you can buy $50 worth of bitcoin. Or $100 or any other amount (anything below $10 makes no sense though).
Remember that for you to own bitcoins, you do not have to buy the whole of it. You can buy Satoshi, the smallest unit of bitcoin (0.00000001BTC), and you can purchase small amounts of it at your own pace.
Can you buy half of a Bitcoin?
You can buy half a bitcoin or even less than that.
The bottom line and a lesson to take with you are that you can buy as much (or little) bitcoin as you wish. There are small fractions of Bitcoin called satoshis that cost only a couple of cents and 100 million of those Satoshis make up one whole bitcoin.
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com