Can You Buy Fractional Bitcoins
Bitcoin, the pioneering cryptocurrency, has become a major player in the digital finance world. Its popularity stems not just from its potential as an investment vehicle but also from its functionality regarding transactions. A common misconception many Bitcoin newcomers have is that you must purchase an entire Bitcoin in order to participate in its potential. However, this is far from the truth. In fact, BItcoin is highly divisible and allows for purchases of fractional amounts. In this blog, we will answer the question in depth on can you buy fractional Bitcoins, what a fractional Bitcoin is, how to purchase them, and more.
What is a Fractional Bitcoin?
Now that we know the answer to can you buy fractional Bitcoins, we can break down what exactly a fractional Bitcoin is. A fractional Bitcoin refers to any portion of a Bitcoin that is less than a whole coin. The smallest unit of Bitcoin, known as a “satoshi,” is equivalent to one hundred millionth of a Bitcoin, meaning it is 0.0.00000001 BTC. This divisibility is essential because it allows Bitcoin investors to access the cryptocurrency, especially when the price of a single Bitcoin reaches a limit that is not accessible to the average user.
Currently, the price of a single Bitcoin is $62,760. While at its highest, in March 2024, a single Bitcoin value exceeded $73,000. The reason for the record-breaking high was due to the approval of Bitcon ETFs in the United States. Alternatively, when Bitcoin first began, the price as a whole was meager, with some even cashing in on one that cost $0.003. However, more recently, its lowest was in 2022, when it started at $3,850 before skyrocketing to $29,796 in 2021. The price dropped again in 2022, starting at $18,490, highlighting the crypto market's unpredictability.
How Can You Purchase Fractional Bitcoins
You can purchase fractional Bitcoins in various ways, including ATMS, online exchanges, or apps.
Online Exchanges
There are platforms where you can deposit, such as USD, EUR, etc., and exchange it for Bitcoin. This method is most beneficial for those looking to buy Bitcoin in highly customizable amounts.
Cryptocurrency Apps
Many apps allow you to buy and store Bitcoin in addition to managing your investments and transactions. These apps include security features like biometric locks to enhance the safety of your assets. It’s best to read the reviews on the apps to ensure your information is protected and safe from hacking.
Bitcoin ATMs
Bitcoin ATMs are the best way to purchase Bitcoins, whether you want fractional or whole coins. Pelicoin ATMs are great for Bitcoin newcomers and experts due to the user-friendly interface that quickly and safely converts cash into Bitcoin. Plus, when using a Pelicoin ATM, users can bypass online exchanges and don’t need to stress about whether an app is safeguarding their information. Users need to have cash, a mobile phone, and their cryptocurrency wallet address.
For detailed instructions on how to use our ATMs, click here.
Advantages of Buying Fractional Bitcoins
There are countless advantages to buying Fractional Bitcoins, first and foremost, being able to enter the market even if you don’t want to purchase the whole coin. Further benefits are below, but this list is not exhaustive. The advantages of investing in Bitcoin, even fractional ones, outweigh any perceived disadvantages and overshadow any warriors about the market's volatility.
Affordability
With the price of Bitcoin on the rise, the market is not highly accessible to everyone. Buying fractions allows more people to invest in the market, opening it up to a larger demographic than those already wealthy.
Investment Diversification
Investors can mitigate risk by spreading their investment across multiple cryptocurrencies or buying multiple fractions at different times, depending on the market conditions.
Educational Value
Starting with small amounts of crypto can be a practical, low-risk way to familiarize yourself with Bitcon’s functionalities and how the market operates; plus, it can help you determine your investment strategy without facing any significant financial risk.
Bitcoin Considerations to Keep in Mind
Now that we’ve discussed fractional Bitcoins, you may want to start investing. Below are some Bitcoin considerations to remember as you advance in your investment journey. The below goes a bit deeper than answering can you buy fractional Bitcoins, but don’t let anything discourage you. Entering cryptocurrency may seem daunting, but with Pelicoin, it’s as easy as entering your regular banking information.
Bitcoin Mining
Though not a direct method of purchasing Bitcoin, mining involves validating transactions and adding them to the blockchain. Miners are rewarded with new Bitcoins, contributing to their investment portfolio. However, mining has recently become less accessible due to the high resource and energy requirements.
Security Measures
Regardless of how you choose to purchase your crypto, ensuring it is safe and secure is crucial. Be sure to use strong and unique passwords, and enable two-factor authentication where possible.
Market Volatility
Bitcoin, as we’ve discussed, is known for its price volatility. Potential investors should be aware of the growth opportunities and risks. Check out our blog to help you strategize your plan and answer any Bitcoin-related questions you may have before becoming an investor.
Future of Bitcoin and Cryptocurrencies
As technology evolves and regulatory frameworks around cryptocurrencies adapt, the future of Bitcoin looks promising to investors. With advancements in blockchain technology, increased adoption in commercial transactions, and greater investment from various institutions, Bitcoin’s role in the financial sector is expected to grow.
Additionally, as public understanding of how cryptocurrencies function increases, the stigma surrounding their volatility and risk will likely diminish, leading to additional investment opportunities.
Learn Can You Buy Fractional Bitcoins and More with Pelicoin
The answer to can you buy fractional Bitcoins is not only yes, but something everyone should be encouraged to do. Fractional Bitcoins make it feasible for individuals with varying financial situations to involve themselves in the cryptocurrency market, expanding their investment horizon and entering an industry that has proven its worth. When using a Pelicoin ATM, the Bitcoin buying process is inclusive, adaptable, easy to use, and can meet each user's varying needs and capacities.
To find a Pelicoin ATM near you and get started on your cryptocurrency journey, click here.