Can You Buy a Fraction of Bitcoin?
Bitcoin has seen some astronomical gains in just a few short years, and many would-be investors feel like they’ve missed the boat.
Even those with cash to spare might think twice before spending tens of thousands of dollars on a single Bitcoin. That’s why many investors want to know if it’s possible to buy a fraction of a Bitcoin instead.
Good news – it’s easier than ever to buy Bitcoin in the exact dollar amount you want and add to your bag at a pace that’s right for you and your wallet.
Let’s discuss how you can purchase Bitcoin in smaller increments and strategies to help you ease into cryptocurrency investing with more comfort and confidence.
How Fractions of Bitcoin Work
Despite being complex from a tech perspective, the fundamentals of Bitcoin ownership and purchasing methods are rather simple to understand.
Let’s figure out how fractions of Bitcoin work and review some key terms.
Satoshis
This is a keyword you’ll hear thrown around on social media and crypto news sites: Satoshis, or Sats, for short.
This term is named for the mysterious creator of Bitcoin, Satoshi Nakamoto, and is meant to represent one hundred millionths of a Bitcoin.
This may seem like an insignificant amount, especially in the early days of the crypto, when prices were low. Now, of course, a sizeable portion of Satoshis is worth a more substantial sum, and we hear the expression “stacking Sats” more often than ever.
Bits and MilliBits
While Satoshis are the most common fractional Bitcoin unit, you will also hear more terms emerge as the asset climbs in price and popularity.
A Microbitcoin, also known as a “Bit,” is much more than a Satoshi, clocking it at one-millionth of a Bitcoin.
A Millibitcoin is even larger than that, at one-thousandth of a Bitcoin. We see how quickly these units can amount to serious money in this range.
Of course, these terms only tell us information about the amount of Bitcoin in question rather than the cash sums they are worth in fiat currency.
Sats, bits, and full Bitcoins fluctuate regularly in terms of market price, so always keep this in mind when placing orders, making trades, mining crypto, or spending it on everyday items.
Pros and Cons of Bitcoin Fractions
In a perfect world, we’d all be able to buy whole Bitcoins at low prices and sell them one at a time when values skyrocket.
This isn’t reality, obviously, which is why we need all the advantages we can get when it comes to buying Bitcoin.
Fractional Bitcoin units like the ones we described offer a fantastic opportunity for crypto beginners to step into the arena and experience what it’s like to own Bitcoin firsthand.
Owning a small stack of Sats or Bits is the perfect introduction to the world of crypto for a number of reasons:
- Teaches you how to buy/sell Bitcoin with low stakes
- Ensures you are set up with a third-party broker or P2P exchange
- Gives you the chance to set up a crypto wallet or address
- Lets you experiment with trading/swapping/withdrawals, and more
- Helps you stay tuned into crypto price action and news
- Encourages more crypto education and smart risk assessments
In short, having just a small amount of Bitcoin is so much better than having none at all!
Even if you’re just dipping your toes into the shallow end of the cryptocurrency scene, Satoshis and Millibitcoin are great ways to do so safely and intelligently.
In terms of downsides, the only thing worth noting is that it may be more tricky to buy super-small amounts of Bitcoin on certain exchanges, especially when fees come into play.
You likely won’t be able to buy a single Satoshi, for instance, because the dollar amount of this transaction would just be too small to justify.
With this in mind, we suggest waiting to place a slightly larger investment in Bitcoin when the time is right, and you can rationalize paying the fees on exchanges like Coinbase or Binance.
Best Ways To Buy Bitcoin Units
We all need to start somewhere in the crypto world, and Bitcoin units allow us to do just that without letting go of our life savings.
Here are the best ways to buy units of Bitcoin and take control of your investments more directly.
Lump Sum
This is how most folks go about buying Bitcoin in smaller chunks and where we recommend you start on your journey.
Whether you go to a centralized or P2P exchange is up to you, but the process is straightforward on most sites.
You can either select the amount of Bitcoin you want to buy or put down an exact cash amount and see how much Bitcoin it will buy for you.
With this one-time lump-sum approach, you know exactly how much you’re paying, how much you’re getting, and can access that Bitcoin fairly quickly depending on the exchange type and other factors.
This is the straightforward, no-frills way to buy Bitcoin, so use this as your gateway.
Dollar Cost Averaging
Smart investors slowly build positions in investments over time, and Bitcoin is no different.
This is where a mechanism like dollar-cost averaging can be hugely beneficial for those who believe in BTC for the long term.
With this method, you will automate the purchase of Bitcoin every week, month, or specified block of time. The same amount of cash is spent, and you will get varying amounts of Bitcoin depending on the price.
This is a great way to take some of the stress from the process of price speculation and keep the FOMO away when building your crypto portfolio for the long haul.
Other Methods To Earn Bitcoin Units
Bitcoin units can be earned in other ways, too. Here’s how people around the world are earning Satoshis every day.
Trading
Other popular digital assets can be traded or swapped for Bitcoin on most popular exchanges, so keep an eye on the “pairs” that appear on your home page when browsing cryptos.
Here is where you can often find advantageous prices and earn fractions of Bitcoin at better rates than the standard cash exchanges. Just be cautious when trading online and ease into the process.
Mining
The crypto mining industry is booming, but pioneers are looking for bigger rewards than simple Satoshis and Bits.
While the current block reward for miners is 6.25 Bitcoin, every mining operation does things differently. Rewards are split equitably between those who provide to the network via computing power, which is how the blockchain is managed and maintained.
Accepting Payments
Nowadays, you don’t have to set aside time to buy Bitcoin or dollar-cost-average your way to a sizeable position in BTC.
If you’re a contractor or business owner, you can request to be paid in Bitcoin. Some companies even offer to pay their hourly employees in BTC, so you shouldn’t less this opportunity pass you by if it’s available.
The Future of Fractional Bitcoin
It doesn’t matter how small each accumulation is to anyone bullish on Bitcoin – every little bit counts! Learn the ropes about Bitcoin fractions so that you can seize every chance to build your position and profit when the time is right.
Visit Gryphon Digital Mining for more insights on Bitcoin.
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