Do you have to buy a whole Bitcoin?

If you check out the current price of Bitcoin you might take a step back thinking that’s not something you can afford. Over the course of time, people have been attracted by the tremendous gains of bitcoins. But the misunderstanding which acts as a psychological barrier of the whole bitcoin has restricted the adoption of Bitcoin by the common people.

The price surge of “one” bitcoin has always been highlighted, making new users think that they will have to invest thousands of dollars to get into the market. But what most people are unaware of is the fact that bitcoins can be bought in half, quarters, or even fractions.

As this has never been properly broadcasted, bitcoins still remain out of reach for most people. There are a handful of altcoins that are taking away the market by providing affordable ways to invest in such coins in whole units.

How are Bitcoins divided?

The smallest unit of Bitcoin is called “satoshi.” It is named after the creator of Bitcoin Satoshi Nakamoto. The ratio of satoshi to Bitcoin is 100 million to 1. One Bitcoin can be divided into 100 million satoshis.

The fiat currencies like the British pound or US dollar have a physical existence. But bitcoins only exist in the digital world. Just like pounds can be broken into smaller units of pence, and a dollar is broken into cent, bitcoins are broken into satoshis.

A satoshi can be described as one hundred millionths of a bitcoin. Small denominations make it easy for people to buy. The transactions are easily conducted. The structure of the bitcoin division can be described as 1 Bitcoin (BTC) is equal to 1,000 millibitcoins (mBTC) or 1,000,000 microbitcoins (μBTC) or 100,000,000 satoshis. It is rumored that Satoshi Nakamoto owns 1 million Bitcoin, which comes to 100,000,000,000,000 satoshis.

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Bitcoins can be bought and sold with fiat currencies. Bitcoin exchanges are platforms that allow users to conduct transactions. They allow you to buy bitcoin by depositing dollars, pounds, or other currencies in the account. This will help you buy Bitcoins and sell them in the future to convert them into any currency you want. Just as with the established currencies, the exchange rates fluctuate, the value of bitcoins also fluctuates depending on the demand and supply.

Most exchanges allow you to buy bitcoins in units. You might not be able to mention how many units of a Bitcoin you want but you can enter the amount you are willing to pay. If you have $1000 to spend, and the price of Bitcoin is $10,000, what you will get is 0.1 bitcoin. It means 10 million satoshis.

Bitcoin exchange is the best platform to buy bitcoins using your debit or credit card. The sides are compatible with both your desktop and mobile. They will require an ID and you can add a PayPal account, bank account, or cards as payment methods. Exchange platforms also let you sell Bitcoin.

If you are looking to buy Bitcoin anonymously, the best way is through cash. You can use a peer-to-peer platform. Another place where you are not asked for identification is Bitcoin ATM.

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Individuals have the advantage of keeping a penny or pence in their pockets but the physical versions of satoshis or Bitcoins are not available. Also, not everyone owns bitcoins. This is also the reason what draws people to bitcoins. Being a digital currency and having no physical presence, bitcoins are more secure even if you don’t take the blockchain technology into consideration. Another reason for bitcoin not existing physically is that it is not yet accepted in day-to-day transactions.