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.
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 set-up. While many cryptocurrencies differ from one another so it’s always best to check, Bitcoin can be broken down into 100 million units. These units are called satoshis, meaning that there are 100 million satoshis in a Bitcoin.
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. Similar to how traders can buy 0.1 oz or 1oz of gold without having to buy an entire kilogram in order to invest in the gold market.
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 economies around the world.
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, and immediate access to 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. $20 at the time of writing is worth roughly 0.000533 BTC, which equates to roughly 1.4 satoshis. For $385, 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. We’d recommend looking at blogs covering the likes of the benefits of Bitcoin, why Bitcoin is not a bubble, and why it makes a strong store of value option.