What Is The Minimum Investment You Need To Start Trading Bitcoin?

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Are you thinking about investing in Bitcoin? Here, I’ll provide you with basic information about investing in Bitcoin.

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This currency is neither owned nor regulated by any government, bank, company, or financial institution. Using Bitcoin currency for transferring money is highly secure and time-saving. Its network is spread across the borders, making it possible for individuals to transfer Bitcoin without intermediaries. Since moving Bitcoin from one individual to another doesn’t require intermediaries, it is cheaper than the traditional banking system. This currency is traded via a decentralized blockchain-based network that is highly secure. Bitcoin currency is programmed so that only 21 million Bitcoins can be created in its network. In August 2021, 18.7 million Bitcoins were created. That leaves a small number of Bitcoins to be further produced. For that reason, its value is considerably higher than any other currency. You can also invest in other popular cryptocurrencies like Ethereum, Cardano, Tether, Binance coin, etc. All of these have different peculiarities and also have some defects. Still, the fundamentals of all these systems are the same, a decentralized system that the government doesn’t control, banks, or any other institution. You can also manage your Bitcoin by using ethereum-trader.app.

Is Bitcoin investment Risky?

Yes. Investing in Bitcoin or any other cryptocurrency has some risks. You can indeed gain more profit by investing more. But, just like any other currency, Bitcoin’s value keeps changing. If you plan to make a long-term investment in Bitcoin, you should consider that its value may or may not increase and vice versa. For example, if a person buys a pretty hefty amount of Bitcoins and plans to sell them at a higher value after six months. And the Bitcoin value doesn’t go up. He might end up in debt.

On the other hand, if the Bitcoin value rises in that duration, he gets his profit.

For this reason, I don’t recommend investing all your money in Bitcoin. Instead, invest a small amount. So that your life doesn’t get affected much, in case something goes wrong.

Limited capital of Bitcoin that will be awarded

The Bitcoin network divides Bitcoin into fractions to make smooth trading possible. You can start your investment by buying as low as 0.00000001 BTC. Most Bitcoin trading platforms have set a threshold amount of Bitcoin for starting trading in their forum. So, they don’t allow buying one Satoshi. But, you can buy one Satoshi via P2P exchange.

Platforms for Bitcoin trading

If you are starting to invest in the Bitcoin market, you need a Bitcoin trading exchange or platform. There exist many platforms where you can put your investment and start trading cryptocurrencies, including Bitcoin. Binance, Coinbase, FTX, OKEx, Huobi are only a few common examples. And this list is quite long. Here, I’ll provide some information about Binance and Coinbase.

 

Binance

Binance is one of the significant players of cryptocurrency exchanges. It supports not only Bitcoin but around 500 other cryptocurrencies as well. It has excellent charting options which provide a better visual representation of the current market. Binance also provides a wallet for storing your Bitcoin or some other cryptocurrency. It costs:

  • 015% to 0.10% for purchasing or trading
  • Depending on which one is higher, it costs 3.5% or 10$ for a debit card purchase.

 

Coinbase

This company was established in 2012.  It has a digital wallet and can withdraw money to PayPal. Coinbase allows trading in a large number of cryptocurrencies which is 107. Coinbase exchange also has a pro version of it which has its own set of rules. Regular Coinbase fees are higher than Binance. It costs:

  • 50% for each trade
  • For a credit card purchase, it costs 3.99%
  • For a bank account or Coinbase wallet purchase, it costs 1.49%
  • If you are using wire transfer, it costs 10$ for a deposit and 25$ for a withdrawal

 

Financing for Extended Period

They HODL their Bitcoins regardless of ups and downs that happen along the way, hoping that its price may rise. And then they sell those Bitcoins and get their profit. These people believe in ideology and technology and trust the team behind it. They think that Bitcoins’ value will rise as the technology progresses, and they will get their profit.

Short-Term Trading

After buying Bitcoins, some people do short-term trading. They purchase and sell their Bitcoins whenever they think that they can make a profit. Sometimes, they don’t pay heed to the ideology or technology behind their trading product.

Bottom Lines

Bitcoin has a high value in the market, and you can earn profit by investing in Bitcoin. But, making this profit is not entirely risk-free. If Bitcoin’s value goes down, you will only get a loss. It is recommended to invest only that amount of money whose failure will not heavily affect you. You can buy Bitcoin via P2P transfer or some cryptocurrency exchange. After purchasing Bitcoin, an individual can do Long-Term investing or Short-Term trading, or both.

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