If you are new to the crypto industry, seeing the price of Bitcoin might make you label it as too expensive and lead you to look for alternative options. We’re here to tell you that you can buy a fraction of a Bitcoin, and better yet we’re going to show you how.
With the innovative technology, you can buy partial Bitcoin amounts as easily as you can buy milk. Let us explain more.
What Is A Fraction Of A Bitcoin?
While fiat currencies are divisible by 100 (looking at a US dollar, each dollar can be broken down into 100 cents), cryptocurrencies have a much more versatile and expansive setup. Not all cryptocurrencies are designed the same way so it’s always best to check on the specific network.
In the case of Bitcoin, it can be broken down into 100 million units. These units are called satoshis, meaning that there are 100 million satoshis in a Bitcoin. Yes, you can buy partial Bitcoin to the tune of 1/1,000,000.
The unit is named after the anonymous entity, Satoshi Nakamoto, who launched the cryptocurrency in 2009. They created it this way to allow for a dramatic increase in value as well as to increase the accessibility of the digital currency.
So while someone might not be able to afford $50,000 for one Bitcoin, users can still enter the market with $10, $100, or even $1,000. Much like how users can buy 0.1 oz or 1oz of gold without having to buy an entire kilogram to invest in gold, one can also buy partial Bitcoin amounts.
How Divisible Is Bitcoin?
Now that you know the smallest unit of Bitcoin is called a satoshi, there are several other increments along the way. You certainly don’t need to know all of these by heart, they’re just here to give you a better understanding of the cryptocurrency.
In the crypto boom of 2017, the Bit denomination was a firm favourite while in 2021 more people are using satoshis or sats as they’re often called.
Why Cryptocurrency Is The Future
Cryptocurrency has changed the financial landscape. Since being created as a response to the global financial crisis in 2009, the digital currency industry has grown into a $2 trillion empire, not only allowing unbanked populations to enter the financial system, but also empowering the banked populations to move their money into a decentralized location.
This is important when considering the devastation that both the 2009 and the 2020 market crashes had on the worldwide economies.
The pandemic saw the US government, along with plenty of others, inject money into the economy through printing new notes. This further down the line results in increased inflation and decreased value of the dollar. As witnessed in the market movements, many investors moved their funds from fiat investments (like the stock market) to digital currencies, particularly Bitcoin. Some even used Bitcoin as a hedge against the US dollar.
Cryptocurrency also removes borders when it comes to transferring funds. Gone are the days of having to change funds into three different currencies (not to mention the excessive paperwork and high transfer costs) when sending money overseas.
Why cryptocurrency is the future is because funds can be sent globally in an instant, with no paperwork required and much lower fees - no matter how big or small the transaction is.
How To Buy A Fraction Of Bitcoin
In order to buy a fraction of Bitcoin, you will need to create a Bitcoin wallet and buy BTC. This process is all streamlined when using the Oobit platform, with the wallet creation taking place when you create your account, alongside a fully integrated, very simple buying process.
Users looking to onboard the biggest cryptocurrency, or a wide range of others, can do so with a number of convenient payment methods. From credit and debit cards to bank transfers to Apple Pay, with everything else in between. Starting with as little as $20, you can buy as much or as little as you want.
Once you've created an account and verified your identity (>5 minutes), select Buy Crypto from the dashboard meun.
Choose which cryptocurrency you would like to purchase from the pop-up menu and enter the amount you want to purchase. Select your preferred payment method, for this example we'll use the Credit or Debit Card option.
Follow the on-screen prompts and enter the personal information required (take note of the box saying "Use the address I have on file", by checking this your address will automatically be entered).
For security purposes, you will be asked to enter a verification code that has been sent to your email address. Ensure that you check the terms and conditions box.
Once the bank has verified your card transaction, the Bitcoin will be delivered directly to your BTC wallet which you can access from the dashboard.
$20 at the time of writing is worth roughly 0.000517 BTC, which equates to roughly 51.7 satoshis. For $390, you could become a satoshi millionaire.
Understand Crypto Before Investing In Crypto
Considering the factors influencing why cryptocurrency is the future and that you can buy a fraction of a Bitcoin, it’s a worthy investment to make today. However, we’d like to encourage everyone interested in entering the cryptocurrency market to first understand the industry and the reasoning behind cryptocurrency, instead of just chasing returns.
Frequently Asked Questions
Below we’re covering a number of FAQs related to buying small amounts of Bitcoin.
Can you buy half a Bitcoin?
Yes, no matter what the value is you can still buy, and sell, half a Bitcoin. You will simply enter the amount (0.5) when asked how much you would like to buy.
Do you have to buy a whole Bitcoin?
As mentioned above, no you do not need to buy a whole Bitcoin in order to enter the Bitcoin market. As each coin is divisible by 100 million (each unit referred to as a satoshi), you can enter the market with as little as $30.
What is the smallest amount of Bitcoin I can buy?
Each platform will vary, however, on Oobit users are able to buy as little as $30 worth of Bitcoin. Currently, this equates to 0.00077316 BTC but this value will fluctuate with the rising or falling of the Bitcoin price.
Where can I buy fractional shares of Bitcoin?
While not technically referred to as shares, investing in Bitcoin is easy and simple with Oobit. All you need to do is create an account, get verified (in under 5 minutes) and then buy a fractional amount with a credit or debit card, or one of the convenient payment options.
Can you sell a fraction of a Bitcoin?
Absolutely, selling a small amount of Bitcoin is as simple as buying a small amount. Head to the dashboard of your account and select portfolio. Then choose the Bitcoin option and select Sell (note that this feature is only available in some jurisdictions).