Buying Bitcoin Fractions in 2020
Buying Bitcoin Fractions in 2020
When Bitcoin started, getting the cryptocurrency was not difficult at all. At the time, one could conveniently get a whole coin and even more. Getting commodities at the time using Bitcoin required a whole lot of coin. One BTC, at the time, was worth about 0.004 USD. The implication of this is that with one dollar, you could buy as much as 250 BTC. However, those days are definitely behind. Currently, one BTC is currently worth about 10,000 USD and not a lot of people can afford to buy a whole coin. This leaves most crypto users with only one option; buying fractions!
One advantage of cryptocurrency is that it allows users to transact with fractions. So yes, it is very much possible to buy a fraction of one BTC. As a matter of fact, it is much easier than most people think.
What are Bitcoin fractions?
Traditional currencies often come in denominations, with some denominations being fractions of others. For instance, the U. S dollar has fractions. A quarter is one-fourth of one dollar i.e. 0.25 USD, a dime is one-tenth of a dollar i.e. 0.10 USD, a nickel is 0.05 USD and a penny is one-hundredth of a dollar i.e. 0.01 USD. Bitcoin fractions are obtainable in the same light.
With several amounts of BTC being equivalent to several units of the coin. Although, unlike the USD, Bitcoin comes in larger units. Here is a list of some units of Bitcoin and what they are worth in comparison to 1 BTC.
What are the existing units of Bitcoin?
The smallest unit of Bitcoin is named after the creator of the cryptocurrency, Satoshi Nakamoto. 1 Satoshi is equivalent to 0.00000001 Bitcoin, which is the least usable amount of Bitcoin that can be used for a transaction. So, if 1 BTC is worth about 10,000 USD, 1 Satoshi is worth less than a cent. The chances that most BTC traders would ever get to use 1 Satoshi are pretty low, however, the option exists if such time eventually comes.
The second unit of BTC is Finney, which is named after Hal Finney. Finney was the first-ever recipient of a Bitcoin transaction which was between him and Satoshi Nakamoto. A Finney is currently the second smallest unit of Bitcoin available. 1 Finney is equivalent to 0.0000001 Bitcoin which is about 0.001 USD.
Other denominations of Bitcoin.
After the Satoshi and Finney, the names of the available denominations of BTC basically just follow the normal standard.
• MicroBit, which is equivalent to 0.000001 BTC, or about 0.01 USD
• MilliBit which is equivalent to 0.001 BTC, or about 10 USD
• CentiBit, which is equivalent to 0.01 BTC, or about 100 USD
• DeciBit which is equivalent to 0.1 BTC, or about 1000 USD
Buying fractions of Bitcoin
What are the factors to consider when buying Bitcoin fractions? BTCBIT makes the process very easy irrespective of the denomination of BTC you want. Whether it’s a DeciBit, a CentiBit, a MicroBit or even 1 Satoshi. You’d be surprised at how much 1 Satoshi can be when that just what you need to complete a huge transaction.
You can pay directly using your card. This way you don’t have to worry about finding convenient payment methods.
Once you reach out to BTCBIT, and you complete the verification process, you would then be required to enter relevant details on the exact amount of BTC you want and your wallet address.
After this, you only have to input necessary payment details and you’re good to go! The process is just as seamless as it sounds. If you are just starting out with cryptocurrency, you might want to start small. The best way to do this is by transacting with fractions. And of course, if you’d like to carry out huge transactions, the good thing about cryptocurrency is that it allows you the luxury of transacting irrespective of the amount involved.
Whether it’s a few pennies or a thousand dollars, you can transact as much as you’d like. But if you can’t afford to buy one BTC at one, buying fractions is advisable. This is what makes understanding the basics of Bitcoin fractions important.