A burning question that seasoned bitcoin dealers laugh at but newbies tend to sweat at is: Do I have to buy a single bitcoin? The answer is no. You don’t have to buy a full bitcoin as your first digital currency investment.
You don’t have to buy a full bitcoin as your first digital currency investment.
There is no such thing as a minimum bitcoin purchase. However, a Satoshi is the smallest unit of bitcoin; it is one hundred millionth of a single bitcoin (0.00000001 BTC). To put that into perspective, 1 Satoshi is smaller than the 100th fraction of one cent by today’s exchange rate. Even if the value of bitcoin goes up to a million, 1 Satoshi would be worth merely a cent. In today’s world, one Satoshi is worth almost nothing in fiats like USD or EUR.
There are several other units of bitcoin but these are set according to preexisting standards and do not hold any special meaning. They are usually divided by multiples of 10 or 100, depending upon which one people choose to use. The most widely accepted are Centbitcoin (1/100th of a bitcoin), Millibitcoin (1/1000th of a bitcoin), Microbitcoin (1/100000th of a bitcoin), and Finney, which is 100 times more than a Satoshi.
You can buy any fraction of a single bitcoin on Paxful. We connect buyers with willing sellers and upon the agreed arrangement, any amount of bitcoin can be bought. You’ll find that there are many offers starting from 1 USD.
As you can see, there are a number of offers that allow you to buy as little as 1 USD or 1 EUR. There is also a column–to pay on the dollar, it indicates how much worth of bitcoin you’ll get when you pay $1. Sellers often set this amount to cut their losses and make a small reasonable profit for the transactions. The payment methods also affect the price. Typical payment methods like bank transfers have lower fees as compared to methods that may be less common, like Sephora gift cards.
Whole Bitcoin or Fractions—What to Buy?
If it’s not obvious already, there is no major significance in buying an entire bitcoin. Buying a small fraction of a bitcoin will give you the same gain rate as buying a whole one. So we suggest you start buying a small amount before going big on your investments.
Advantages of Buying Small Amounts of Bitcoin
- Though your profit won’t be as much, this will cut your losses in case the price of bitcoin goes down.
- You can learn to trade before applying your newfound skills for making a higher profit.
- You’ll understand how everything works in the bitcoin community at a very low cost.
- You’ll find out about rates, margins, and opportunities to arbitrage. This knowledge can very easily be scaled to a higher amount of bitcoin.
Advantages of Buying Large Amounts of Bitcoin
- You receive a bigger profit if the price goes up.
- A bigger long-term reward for holding onto your bitcoin.
- You can sell your bitcoin at retail on P2P platforms for higher margins.
- The price of buying a larger amount of bitcoin is usually lower, which means you can resell in small quantities.
Are you ready to make your first bitcoin investment? Visit our Buy Bitcoin page to buy any fraction of bitcoin.