Bitcoin is often called "digital gold" because it has attracted the attention of many investors. Its value is constantly growing, and its decentralization makes it especially important. However, many people believe that it is impossible to buy Bitcoin because it is very expensive. This is incorrect.
What Is Bitcoin Divisibility?
You don’t need to buy a whole Bitcoin if you want to start your way with investing in crypto. Bitcoin is divisible. It means that it can be divided into very small parts, which are called Satoshis. Satoshis are affordable to anyone. It means that anybody can buy a small part of Bitcoin, and it doesn’t depend on the person’s budget.
What Is Satoshi?
One Bitcoin can be divided into 100 million parts called Satoshis. Satoshis were named after the Bitcoin creator Satoshi Nakamoto. Even if you own one Satoshi, which is 0.00000001 BTC, you already own Bitcoin.
You can invest in Bitcoin as little money as you want. You can buy Satoshis for $1, $100, or $1,000, and you still will own a piece of Bitcoin..
Bow, when you understand that Bitcoin is divisible, you also understand that you can invest in Bitcoin even if you aren’t rich.
Common Myths about Buying Bitcoin: Can You Buy Bitcoin Partially?
Most beginners believe that investing in Bitcoin is possible only when you buy the entire coin. This is why the high cost of Bitcoin makes it inaccessible to most citizens.
This is mistaken. You can buy a portion of Bitcoin, and this portion can be as little as one needs.
How to Buy a Fraction of Bitcoin?
Now, you may be wondering how you can buy a part of Bitcoin. Here is how it works.
Choose a Crypto Exchange
Choose a reliable cryptocurrency exchange, such as Coinbase, Binance, or AddUp. These platforms let you buy Bitcoin in parts, and the purchase can be as little as $10.
Create an Account
Create an account on the platform. Most exchanges will ask you to pass KYC where you will need to provide some personal details.
Deposit Money
Deposit funds into your exchange account.
Buy Bitcoin
Now, when you have money in your account, you can look for Bitcoin and select how much Satoshis you want to buy.
Store Your Bitcoin
After you’ve bought Bitcoin, you may want to transfer it from the exchange’s wallet to a non-custodial wallet. You can use a hardware wallet to keep your funds safe.
Things to Pay Attention to When Buying a Partial Bitcoin
You shall consider some details when you buy Bitcoin. These things will help you to complete your purchase smoothly and keep your coins safe.
Transaction Fees
When you buy Bitcoin, you pay transaction fees. Calculate them in advance to avoid unpleasant surprises.
Secure Storage
When you have bought your Bitcoin, store it in a hardware wallet. If you decide to store it in a mobile or a desktop wallet, make sure it is reliable and trustworthy.
Volatility and Risk
Bitcoin is very volatile, and its price can change rapidly. This is why your investment’s price may also change in a very short time. If you want to reduce risks, buy small amounts over time. Most investors do it to benefit from Bitcoin price movements in the long term.
Legal and Tax Considerations
Cryptocurrency regulation differs in different countries. You shall learn all the rules, especially about taxes, and only then buy Bitcoin. Make sure you keep your records about your Bitcoin purchases, it will help you if you need to file a report for an authority.
Where to Buy a Fraction of Bitcoin
You can buy a fraction of Bitcoin from several places. Here’s a simple guide to help you choose the right option.
Cryptocurrency Exchanges
Popular cryptocurrency exchanges like Coinbase, Binance, Kraken, and AddUp let you buy a fraction of Bitcoin. These platforms are user-friendly and ideal for beginners. They also offer features like secure wallets and learning tools.
How to choose the best cryptocurrency exchange
- Reputation: Look for exchanges with positive reviews and a strong track record.
- Security: Check if the platform uses measures like two-factor authentication (2FA) and cold storage for funds.
- Regulation: Choose an exchange that complies with local and international laws.
- Fees: Compare transaction and withdrawal fees, it will help you to save some money.
Peer-to-Peer (P2P) Platforms for Buying Bitcoin
P2P platforms like LocalBitcoins or Binance P2P let you buy Bitcoin directly from other people. You can pay through bank transfers, PayPal, or even cash.
How to choose a reliable P2P platform
- Check seller ratings: Select only reliable sellers with good history.
- Use escrow services: Ensure the platform holds your funds in escrow until the transaction is complete.
Crypto ATMs
Some cities have Bitcoin ATMs where you can buy Bitcoin by inserting cash. While they are very comfortable, using them may be expensive.
Mobile Apps
Apps like Cash App and PayPal also let you buy small amounts of Bitcoin, and they are easy to use. This is why they are good for beginners. But they also have limited features, which is why experienced traders may prefer exchanges.
Benefits of Partial Bitcoin Purchase
For most people, investing in Bitcoin seems impossible. You may also feel overwhelmed, especially when you see the price of Bitcoin. But you can benefit from small investments and buy a part of Bitcoin. This allows you to start investing in BTC without spending all your savings. Here are some reasons why you may want to start with BTC:
Affordable for Everyone
Most people cannot afford to buy the entire Bitcoin, but almost everybody can buy a fraction of it. You can start investing in Bitcoin with only some dollars, and it won’t be devastating for your budget.
Flexible Investment Options
Why is it profitable to buy Satoshi? You don’t have to make a big purchase all at once. You can buy small fractions of Bitcoin, like $10 this month, $20 next month, and so on.
Easy Access for All
Bitcoin is designed to be accessible. It can be divided into very small units, and you can buy it with little money. For it, you have to have a smartphone and internet connection. Everybody can invest in Bitcoin, even if the income level is very low.
A Simple Way to Start
You can start with a small investment and increase your BTC holdings over time.