How to Invest in Bitcoin and Make Money?
A burning question many first-time Bitcoin traders have is: “Do I really have to start with a full Bitcoin?” The short answer is no, you don’t have to buy 1 whole BTC as your first Bitcoin investment. In fact, there are many options you can choose from and technically, there’s no such thing as a minimum Bitcoin investment. There are units of Bitcoin that are set according to pre-existing standards, but they don’t hold any special meaning. They are usually divided by multiples of 10 or 100, depending on your investment or trading needs. Here are some of the units of Bitcoin you should get familiar with:
- Satoshi (0.00000001 BTC—the smallest unit of Bitcoin)
- CentiBitcoin or cBTC (1/100th of a Bitcoin)
- MilliBitcoin or mBTC (1/1000th of a Bitcoin)
- MicroBitcoin or μBTC (1/100000th of a Bitcoin)
To put the units into perspective, one Satoshi is smaller than the 100th fraction of one cent by today’s exchange rate. Even if the value of Bitcoin goes up to 1 million USD, one Satoshi would be worth merely a cent. In today’s world, one Satoshi is worth almost nothing compared to fiats like USD or EUR.
How to invest in Bitcoin
You can easily buy any fraction of Bitcoin on Paxful with zero fees from millions of traders around the world. We connect buyers with sellers where they can purchase amounts of BTC for as little as 10 USD. On Paxful, you have nearly 400 ways to pay for your BTC—including gift cards, debit/credit cards, or other popular options in your area. You can learn how to start buying Bitcoin on Paxful by checking out our help center article: Getting Started with Paxful.
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Whole Bitcoin or fractions—What to buy?
If it’s not obvious already, there’s no major significance in buying one whole or a fraction of a Bitcoin. Buying fractions of it will give you the same gain rate as buying 1 BTC. Basically, it all has to do with how much you’re willing to invest.
Advantages of buying small amounts of Bitcoin
- While your profit won’t be as high, buying small amounts can cut your losses in case the price of Bitcoin goes down
- You can learn to trade before applying your newfound skills in bigger trades
- You’ll understand how everything works in the Bitcoin community at a lower cost
- You’ll find out about rates, margins, and opportunities to engage in crypto arbitrage. This knowledge can very easily be scaled to a higher amount of Bitcoin
Advantages of buying large amounts of Bitcoin
- You receive a bigger profit if the price goes up
- A bigger long-term reward for holding onto your Bitcoin
- You can sell your Bitcoin at retail on peer-to-peer (P2P) platforms for higher margins
- The price of buying a larger amount of BTC can be lower at times, meaning you could resell in smaller quantities
Bitcoin is not just for investment
Bitcoin provides many opportunities for individual financial growth and it could provide an opportunity to completely change our financial systems. Bitcoin is an alternative means to make money and its other use cases are starting a financial revolution around the world.
Are you ready to invest in Bitcoin and make money? Visit our Buy Bitcoin page to buy any fractions of it right away. You can also head over to our Bitcoin calculator page to check its current price. Happy trading!