What is the lowest amount you can invest in Bitcoin?
Thinking of investing in cryptocurrencies like Bitcoin? Find out how little you can invest to get started, and much more.
No one likes to feel like they are missing out on something. And while people are naturally cautious of anything new, we’ve all seen news of people making impressive profits from cryptocurrencies like Bitcoin.
But could Bitcoin be a wise investment for you? And if so, how much should you invest and how can you get started? In this article we cover these and more questions to help you decide whether investing in crypto could be for you.
What is the lowest amount you can invest in Bitcoin?
Unlike stocks, you can buy a little fragment of Bitcoin. The smallest unit of Bitcoin is called Satoshi, which is 0.00000001 BTC. And it is the lowest amount of BTC you can buy. If you buy 100 million Satoshis, then it will be equivalent to one Bitcoin.
However, most crypto exchanges do not allow you to buy a small portion of Bitcoin. Instead, they have a minimum investment amount for cryptocurrencies.
Most crypto exchanges allow you to buy crypto for as low as $2. Along with that, you will also need to pay trading fees. If you wish to buy the smallest portion of Bitcoin possible, then you can use peer to peer or P2P trading. But the catch is that you have to find sellers on P2P platforms who are willing to sell a small percentage of their assets.
How much should you invest in Bitcoin?
If you are going to buy 0.00000001 BTC and wait for it to fetch you high returns, that is not going to happen.
So the question is, how much should you really invest in Bitcoin? That depends on how much money you have available, how much you are willing to invest, and your appetite for risk.
Many crypto investors suggest you keep about 5 to 30% of your investment capital in Bitcoin. As a general rule, 5% is considered to be safe, and 30% is considered to be a risky investment. So depending on your risk taking abilities, you should set a percentage for yourself.
The Money Mongers, a crypto research firm recommends that Bitcoin is not the only cryptocurrency held in your portfolio. Their suggestion is to diversify your portfolio and invest in other cryptocurrencies too.
Another rule of thumb when it comes to crypto investments is to always invest what you can afford. The crypto market is famously volatile, so there’s a chance your investment may lose money. Never invest more than you can afford to lose is a wise approach to any investment, and is especially pertinent when it comes to cryptocurrencies.
Is Bitcoin a good investment?
Bitcoin was the first cryptocurrency launched back in 2009. Since its inception, there are many more coins that have come into the market. But today Bitcoin is still considered one of the best cryptocurrencies to invest in.
One of the primary reasons for this is because it has a 21 million coin supply cap. Over that there will be no new Bitcoins. This makes Bitcoin a rare asset to own, and leads experts to predict that the price of Bitcoin may well continue to rise over the coming years.
Here are some more reasons why you may want to consider investing in Bitcoin.
Bitcoin regulations are still in development
Back in 2010, there was no regulation for Bitcoin or any other cryptocurrency. But today the world is slowly becoming accustomed to the concept of cryptocurrencies. As a result, rules and regulations are now being put in place for the industry.
This will help in the massive adoption of crypto and definitely drive the price of Bitcoin and other currencies up. As a result, cryptocurrency has the potential to be one of the most profitable investment instruments today.
The potential for high profits
Another benefit of investing in Bitcoin is that it can offer you high returns. Back in 2009, the price was less than a dollar. But if you look at the price of the coin today, it has grown considerably. It saw massive growth in 2017 in particular.
To give you an idea of how much you can have made with Bitcoin, if you had invested $50 back in 2009, by 2017 it would have turned into $100 million.
Low transaction fees
The low transaction fee associated with Bitcoin is another advantage. Transferring funds from one country to another involves extremely high transaction fees. On top of that, international transactions are time consuming.
But with Bitcoin, the transaction happens within a few minutes only. Also, the prices are lower than what banks would charge.
And since Bitcoin is solving a real issue. The adoption of Bitcoin would grow in the future, which will drive its price.
How to invest In Bitcoin
Investing in Bitcoin is extremely easy. All you need is a cryptocurrency exchange. A crypto exchange is the same as a stock exchange. It is basically a marketplace where you can buy, sell or trade cryptocurrencies like Bitcoin.
There are hundreds of crypto exchanges available on the internet. However, whenever you are picking up an exchange, make sure it has a high market volume and low trading fees.
High market volume helps you to buy and sell Bitcoin at your desired price. And lower price ensures that you are making the most profit out of your crypto investment.
Some of the most popular exchanges are Binance, Kraken and ByBit. But it’s always wise to conduct your own research and pick an exchange that meets your needs.
If you do decide to go with Binance, then here are the steps to buy Bitcoin using it:
- Sign up on Binance and complete the KYC process.
- Next, go to Trade > P2P from the navigation menu.
- Now select BTCZ from, and under it, you will find a fiat option. Choose USD or your local currency.
- Next, you will get to see a list of Bitcoin sellers with their price, limit, and payment method.
- Choose your preferred one, then click on the Buy BTC button.
- Next, transfer your funds to the seller and confirm your transaction. You will soon get your Bitcoin in your Binance crypto wallet.
- If you wish to hold your coins for a long time, then move your coins to an external wallet. Or you can use your BTC to trade other coins.
Hopefully this article has answered some of your questions about Bitcoin – including the lowest amount you can invest in it – and given you some insight into trading cryptocurrency.
Photo by Claudio Schwarz