Many people would say the smallest number of Bitcoin that can be purchased is one Satoshi. 1 Satoshi is 0.00000001 Bitcoins. but the real answer isn’t a clear one.
The answer is based on the crypto exchange investors use to buy their Bitcoin. Coinbase for example, one of the most popular exchanges in the US. Coinbase users can purchase or sell as little as 2.00 of digital currency. This excludes fee’s that they can charge.
This post will address some of the common questions may have when they first invest.
The value of Bitcoin
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It’s hard to predict the true value of Bitcoin as the market can be volatile. Investors can use the market cap, volume of trades, and a total number of coins in circulation to get an assessment of Bitcoins’ current value. Of course, there are outside factors an investor must consider. Factors like the news, advancements in the blockchain, and new policies.
The protocol that supplies Bitcoin tokens is capped at 21 million. For some context, currently, the circulating supply is 18.5 million. Which means Bitcoin is slowly becoming scarcer. So, over time as Bitcoin is mined and brought the value should go up, right?
It can be hard to predict just how much the value of BTC can drop or increase. As the value is based on the overall demand at the time of trading.
With over 1000 altcoins to invest in, the ultimate value of bitcoin lies in its wide adoption. Bitcoin is one of the top coins for exchanging, buying, and selling. So, it’s never a bad idea to own a piece of Bitcoin.
The Minimum Amount of Bitcoin to Buy?
If going to start investing in Bitcoin look at favorite Exchanges like Coinbase or Kraken and make an account. The minimum average to start with should at least be $5 USD to buy some Bitcoin. If you’re considering Peer to peer exchanges then a good place to start is $10 USD.
Could investors buy Bitcoin at a smaller amount than what was recommended? Yes, it’s possible.
Bitcoin has a circulating supply of 21 million. In comparison to other traditional fiat currencies, BTC has the least amount of currency in circulation. But doesn’t mean investors can’t get in on all the fun.
As mentioned earlier, Bitcoin is divisible by 8 decimal points. Which means investors can own fractions of 1 Bitcoin called Satoshi. This is great for average buyers looking to own Bitcoin without having to shell out thousands for 1 Bitcoin.
A good example of this is the US Dollar. 1 dollar in USD can be divided into cents, or 1/100. As opposed to one 1 BTC being divisible into Satoshi or 1/100,000,000. This extreme divisibility allows users to invest a small minimum amount for Bitcoin.
1 Satoshi to 1 Dollar
At the time this article is written, 1 Satoshi is equal to 0.00011 US Dollars. The reverse, 1 US Dollar is 9,444 Satoshi
Why the Crypto Exchange You Buy from Matter?
If you plan on jumping into cryptocurrencies you’re no doubt going to be using an exchange to trade Bitcoin safely. Choosing an exchange platform that best suits your matter. There are two ways to trade Bitcoin.
Bitcoin can be traded on either a regular exchange or peer-to-peer platform. Each exchange has its own rules when it comes to minimum limits to trade. Also, transaction fees can vary. Which ultimately affects the minimum amount of Bitcoin you’d want to purchase.
We listed a few of the common exchange rules, limits, and fees below.
Coinbase is a popular exchange in the US. You can purchase or sell a minimum amount of 2.00 worth of digital currency.
Because the transaction is less than $10 USD. Users can expect a fee of $0.99 US Dollars. Purchase Bitcoin Here: Coinbase.
Kraken is one of the biggest crypto exchanges out on the market. Offers amazing features for both newbies and more advanced users.
Kraken offers a minimum order amount of 0.001 BTC, which averages out $10 USD. Kraken has a minimum flat fee to cover the transaction costs. Purchase Bitcoin Here: Kraken.
Currently, Binance is the largest crypto exchange platform in the world. Supporting more than 200 altcoins.
Binance offers a minimum order amount of 0.0001 BTC, which averages out to $1 USD. Binance charges a 0.1% fee on all trades. Purchase Bitcoin Here: Binance.
Bittrex is a complete and immersive trading platform from end to end. Offering lightning-fast trades, dependable digital wallets, and a great user interface. Bittrex has minimum trade size of 50,000 Satoshis, which averages out to $5 USD.
The fee structure for Bittrex is a bit different. The fees are based on the specific coin’s network fees. Purchase Bitcoin Here: Bittrex.
Many of us come from different backgrounds. So our income levels, and are goals on how we want to invest are going to be different. Some investors will have the means to jump in and buy a lot of BTC right away. While others may have the strategy to buy fractions.
Ultimately what matters is that you started to invest in Bitcoin. Which for most is the hardest part to do. Once you begin to buy, you’ll see that its important to understand the overall value of Bitcoin more than just the minimum.
Bitcoin does not have a static rate. Factors like market cap, Bitcoin in circulation, and even fees from exchanges all play a role in the price of BTC.
Sure, you can purchase BTC for $2 USD but truthfully why would you? After you calculate the transaction fees an exchange would charge it just doesn’t seem practical.