Do you want to buy Bitcoin? You don’t have to spend $ 57,401 to invest

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Bitcoin (BTC) is the world’s largest and most expensive cryptocurrency. If you wanted to buy an entire Bitcoin, at the time of writing it would cost $ 57,401, according to data from CoinMarketCap. But you don’t have to buy an entire part. In fact, you can invest in Bitcoin with less than a dollar.

If this surprises you, you are not alone. Nearly 40% of Americans didn’t know they could buy part of a cryptocurrency, according to a recent survey by digital payment company Bakkt. Another 12% did not understand the question.

The good news is that all of the major cryptocurrency apps and exchanges will allow you to buy a fraction of a Bitcoin or any other cryptocurrency it trades. But you need to pay attention to account minimums and take into account the fees that you will be charged.

Minimum crypto spending and minimum deposit requirements

Cryptocurrency exchanges make it easy to buy as much or as little crypto as you want. You simply specify the dollar value of your transaction, and it will use the current market prices to calculate the corresponding amount of crypto. For example, on the Coinbase app, I select Bitcoin, between the amount of money I want to spend and it tells me how much Bitcoin I will receive.

However, if you only want to invest a small amount, you should pay attention to the minimum expenses and minimum deposit requirements on the crypto platform you plan to use.

Different platforms have different requirements. To give you an idea:

Coinbase has a minimum spend of $ 2 and the minimum deposit depends on how you transfer money. Gemini’s trading minimums depend on the individual crypto – its minimum for Bitcoin is 0.00001 BTC (around $ 0.60) and it has no minimum deposit. EToro has a minimum deposit of $ 50 and a size minimum transaction transaction of $ 25. Pay attention to fees when buying Bitcoin or other cryptocurrencies

Fees are another consideration if you are only buying a small amount of cryptocurrency. It doesn’t make sense to buy $ 50 of Bitcoin to lose $ 10 in exchange fees. Different exchanges have different fee structures, but all of them make money in one way or another. Some charge when you deposit money into your account, while others charge higher trading or withdrawal fees.

Check the following fees when deciding the best places to buy Bitcoin:

Deposit fees. The fees vary depending on how you plan to deposit money. Bank transfers are often free, while payments by credit or debit card often come with a fee of around 3% transaction fees. Some exchanges publish their trading fees while others give you a quote at the time of trading. You may be able to get a discount by paying with the exchange’s own token, like Binance’s BNB Withdrawal Fee. Make sure you know the withdrawal fees before making a deposit. You may need to pay a percentage of the withdrawal or a fixed fee which varies by crypto. Don’t judge cryptos by price alone

The fact that you can buy a fraction of a Bitcoin means that you don’t need to turn to low-cost cryptos if you want to invest. This is because buying cryptocurrencies at a low price is much riskier than buying more established coins that have solid business plans and reputable teams.

Just because a coin is cheap doesn’t mean it’s a good deal. Some coins even produce billions of tokens, all worth a fraction of a cent. The creators hope people will be tempted by the low price. But if these coins have no fundamental use, there is no guarantee that the price will increase. Indeed, there is a good chance that the play will fail completely.

For example, let’s say I had $ 100 to invest in cryptocurrency.

Based on today’s prices, I could buy 0.00175 BTC. I would only own a fraction of a coin, but if the price of Bitcoin increased in value, my investment would also increase. Based on today’s prices, I could also become a FLOKI millionaire with 1,368,831 Floki Inu (FLOKI). This is one of the last pet coins that came to light after Elon Musk tweeted about his puppy (who is called Floki). I would own a lot of coins, but there is a good chance that I will lose all my investment because the coin has no fundamental value.

If this is your first time investing in cryptocurrencies, buying a small amount of Bitcoin is a great way to start. Make sure you aren’t spending money that you can’t afford to lose, as even Bitcoin is still a relatively untested investment and there is still a lot we don’t know about how the market is. will develop.

Buy and sell cryptocurrencies on an exchange chosen by experts

There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide which features are most important to you.

To get you started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and start your crypto journey, today.

Read our free review

Emma Newbery owns Bitcoin.

Believed strongly in the Golden Rule, which is why the editorial opinions are our own and have not been previously reviewed, endorsed or endorsed by the included advertisers. The Ascent does not cover all the offers on the market. Editorial content for The Ascent is separate from editorial content for The Motley Fool and is created by a different team of analysts. The Motley Fool owns stocks and recommends Bitcoin. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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