Buying Bitcoin in the past seemed like a pretty straightforward activity, as there were no decimals of the amount of Bitcoin you could buy. The minimum amount of Bitcoin for purchase back then was 1 Bitcoin (BTC).
Nowadays, as time goes by and the value of Bitcoin goes up, there are limitless possibilities of how much you can purchase. There are various cryptocurrency exchanges that allow you to buy small amounts of Bitcoin at different rates and for different transaction fees.
Our article will delve deeper into Bitcoin’s denomination and explain in more detail the smallest units of Bitcoin that you can buy, especially if this is your first time meddling with Bitcoin investments.
What Is Bitcoin?
Before we dive into the world of Bitcoin purchasing, we should cover the basics.
Bitcoin was introduced to the world back in 2009, and since then, it has taken the world by storm with its popularity and surges in value. It was created by the enigmatic developer Satoshi Nakamoto as a way of improving online payments and transactions, offering lower transaction fees and more anonymity compared to traditional online payment systems.
Bitcoin sparked a flood of cryptocurrencies that entered circulation. Some of them acted as a perfect copy of the original coin but some of them were only inspired by Bitcoin and brought their own features and capabilities to the crypto table. The most popular altcoins include Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Bitcoin Cash (BCH), and more.
Due to Bitcoin’s decentralized nature, the coin is merited as an alternative currency that is independent of any central authority. Bitcoin wasn’t initially available for purchase in small amounts, instead, users could only purchase full bitcoins. This has changed over the years as the value of Bitcoin went up and various different cryptocurrency exchanges debuted on the market.
Bitcoin’s backbone comes from a digitally distributed public ledger called blockchain. The blockchain is primarily a chain of blocks filled with transaction data by Bitcoin miners. These blocks keep records of every transaction ever conducted and are impossible to tamper with, ensuring safety when using Bitcoin as a payment method.
Typically, you can buy BTC through Bitcoin exchanges like Coinbase, Kraken, Paxful, and others. In order to purchase Bitcoin with fiat money, you need to have a digital wallet that’s linked to your bank account, debit card, or credit card. The wallets are usually provided by the crypto exchanges, but you can purchase your own wallet if you want.
What’s the Smallest Amount of Bitcoin?
With the surges in the current price of Bitcoin, rarely can a beginner purchase a full Bitcoin. It’s important to note that being able to buy ultra-small fractions of a whole Bitcoin gives confidence and opportunities to inexperienced and young users who are just entering the world of cryptocurrency. The smallest amount that can be purchased these days is one hundred millionth part of a full Bitcoin or 0.00000001 BTC. This decimal is honorably called a satoshi.
One of the greatest opportunities for purchasing fractions of Bitcoin is that users can utilize it as a store of value. Investors can buy $100 worth of Bitcoin every month and keep it in their hardware wallet, replacing traditional savings accounts or retirement funds backed up by banks and other third parties. Bitcoin users enjoy full control over their funds without having to answer in front of or depend on centralized financial authorities.
Another great reason for buying crypto in small fractions is that over time, those fractions can stack up and users can soon enough find themselves owning a pretty hefty sum of Bitcoin. Thanks to the volatile nature of Bitcoin and cryptocurrencies in general, a $500 investment in BTC might turn into $5,000 in the course of a month, but there’s also a risk that it could plummet down to $50. Still, long-standing digital coins like Bitcoin and Ethereum are considered low-risk investments as opposed to newly launched altcoins.
Where Can You Buy Small Amounts of Bitcoin?
If you want to earn a small amount of free Bitcoin, you can google the term Bitcoin faucet and you will find web pages that give out a couple of free satoshis for completing simple tasks like watching a video. If you’re a beginner and don’t want to spend any of your money yet, this might be a safe and subtle way of starting your crypto journey.
You should also keep in mind your location, as not every trading platform is available in every region worldwide. For instance, in Nigeria, you can only buy a low amount of Bitcoin through the trading platform Luno. They offer Bitcoin trading and purchases as low as 0.0005 BTC, which is equal to around $20.
If you want to buy Bitcoin even cheaper, then you’ll have to look around for platforms with reasonable transaction fees because it wouldn’t be worth it to buy $5 worth of Bitcoin just to pay a $6 fee. If you want to stay around the budget of $5, look into Paxful and see whether it’s available in your country.
Paxful is a leader in P2P crypto platforms. It was created in 2014 with the purpose to make crypto trading easy and simple for everyone. It has over 300 payment methods and makes it very easy to find offers for low amounts of BTC. You have direct control over your private and public keys, 24/7 customer support, and a free digital wallet to store your newly bought crypto.
Coinbase also offers Bitcoin purchases of just $1 but its fees are higher, i.e. a 1.49% fixed fee with a 15 cents minimum amount. It wouldn’t be very practical to use it for buying small Bitcoin amounts, but it’s still an option.
A Few Words Before You Go…
In this article, we’ve shown you a few ways to buy low amounts of Bitcoin so that you can see how comfortable you are to spend money on these non-jingling coins.
Whether you use it as a store of value or as a life savings mechanism, Bitcoin promises that you and only you will be in charge of your assets, as there’s no need to go to the bank and waste your precious time and money.
For the newer users, many exchanges offer free crypto when you create your account, nothing exciting, mostly in the range of $5, but it’s a start! It’s not your money so you can view it as a bit of free fun. You can also try some demo accounts where you can virtually invest in crypto but they often give out crazy amounts of money for you to play with, and it’s just not the same.