Bitcoin has become the hottest topic since its inception.
Many people want to get their hands on some of these virtual coins. So, how much does it cost to purchase them?
Bitcoin is a type of digital currency that was created in 2009. It uses cryptography to secure transactions and verify ownership.
The total supply is capped at 21 million bitcoins, and the price they can individually be bought at changes every day.
However, you don’t actually need to buy a whole Bitcoin if you can’t afford one. The smallest denomination of Bitcoin is known as a ‘satoshi’, which is the equivalent of 100 millionth of a Bitcoin.
You can buy Bitcoins using credit cards or debit cards, but it’s usually cheaper to pay with cash.
If you don’t have access to a bank account, you can also use services like Coinbase, Circle, BitPay, and LocalBitcoins to buy Bitcoin.
In this guide, we’ll be going over everything you need to know about Bitcoin and how you can buy it yourself.
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How Does Bitcoin Work?
The first cryptocurrency was introduced by an unknown person (or group) under the name Satoshi Nakamoto.
In 2008, he released a paper describing his invention as “a peer-to-peer version of electronic cash that would allow online payments to be sent directly from one party to another without going through a financial institution.”
Satoshi’s idea was for everyone to have equal access to money. He wanted to create a system where no single entity controlled all the money.
Instead, anyone could send any amount of money to anyone else without having to go through a third party.
This is why it’s called “decentralized” – there are no central servers storing your information.
Instead, each transaction is stored on a public ledger called the blockchain.
This means that anyone can view the history of every transaction made with bitcoin.
This makes Bitcoin different from traditional currencies because when someone buys something with dollars, they’re not really buying anything tangible.
They’re just transferring money into the seller’s bank account so that the seller can spend that money however they choose.
With Bitcoin, the buyer and seller both agree to a payment before it happens.
Once the deal is done, the money is transferred immediately and securely between the two parties.
Because there’s no middleman involved, Bitcoin is considered a decentralized form of currency.
Unlike other forms of money that require banks and governments to regulate and control how it’s used, Bitcoin is free to trade anywhere around the world.
There are currently more than 11 million bitcoins in circulation.
The current exchange rate is $8,500 per coin. However, the value of the currency fluctuates based on demand and supply.
How To Buy Bitcoin
If you want to start trading Bitcoin, you’ll need to find somewhere to purchase them.
There are many ways you can do this:
Buy With Credit Card
If you have a credit card, you can easily buy Bitcoin with it. You can visit sites like Coinbase, Gemini, and Kraken to buy Bitcoin with a credit card.
These companies will convert your fiat currency into Bitcoin at the current market price.
You can also buy Bitcoin with a debit card, but most places won’t accept it as they will want to avoid fees and want to maintain full control over their money.
For example, if you own a Trezor hardware wallet, you can simply plug it into your computer and transfer funds straight to it.
Some exchanges offer instant purchases using credit cards or wire transfers. If you don’t feel comfortable sending your money to a random website, these services may be a good option.
Buy With PayPal
Another way to buy Bitcoin is to use PayPal. Many people already have a PayPal account, and some merchants even accept PayPal payments.
The process is very similar to paying with a credit card. You can either pay with a credit card linked to your PayPal account, or you can link a new credit card to your PayPal account.
Once you’ve purchased your coins, you can move them to another wallet by following our guide on How To Move Bitcoins From One Wallet To Another.
The easiest way to get started is to sign up for an online exchange. An exchange is basically a marketplace for buying and selling Bitcoin.
These websites allow you to connect directly to buyers and sellers, eliminating the need for a 3rd-party intermediary.
Some exchanges only provide certain types of transactions (like cash deposits) while others allow you to make any type of transaction.
Exchanges usually charge a small fee when you initiate trades, but once completed, the fees are typically much lower.
One of the best-known and largest exchanges is Bitstamp. It allows users to deposit euros, pounds sterling, U.S. dollars, Canadian dollars, Japanese yen, Chinese yuan, Australian dollars, New Zealand dollars, Indian rupees, Mexican pesos, Russian rubles, Swedish krona, Norwegian krone, Danish krone, Swiss francs, and Hong Kong dollars.
Bitcoins are traded against each other through what’s called “bitcoin markets.”
Each bitcoin has its own unique identifier called a “hash” which serves as proof of ownership.
When someone wants to sell their bitcoins, they broadcast a message that includes the hash of their coins.
Anyone who owns those specific bitcoins can then see the transaction and decide whether to buy the coins from the seller or not.
This method of trade works well because there’s no middleman involved. However, it does mean that the person making the sale must trust the buyer.
Buying Bitcoin is easy, but getting started requires patience. Once you do find a reliable source to purchase your first few coins, you’ll quickly realize how rewarding it is to hold onto your own private keys instead of handing over your money to a third party.
If you’re ready to start investing in Bitcoin, check out one of the many cryptocurrency exchange sites available online.
Most of these are very user-friendly and have plenty of information available to people who are new to the crypto investing world.
Frequently Asked Questions
The minimum order size on the Bitcoin Market is 0.00001 BTC.
Yes, there is no minimum deposit to buy bitcoin. You can buy $10 worth of bitcoin, $10,000 worth of bitcoin, or even $1 million worth of bitcoin. Our crypto exchange can handle all sizes of purchases. While you cannot buy an entire bitcoin for $10, you will be able to buy fractions of a bitcoin — known as satoshis.
However, some estimates can be made based on blockchain data and surveys of Bitcoin holders. According to data from Bitinfocharts, as of March 2023, there are approximately 827,000 addresses that hold 1 bitcoin or more, representing around 4.5% of all addresses on the Bitcoin network.