Minimum quantity to buy bitcoins

It has been a whirlwind decade for cryptocurrency; buying and selling bitcoins has suddenly become one of the most enticing investment opportunities in the world. When considering whether or not to invest in bitcoin, people inevitably wonder about just how much they’ll have to invest.

So, what exactly is the minimum investment required to buy bitcoins? The truth is, it depends. In theory, the minimum portion of a bitcoin that can be bought our sold is called a Satoshi, but as it is worth just a fraction of a penny, no cryptocurrency exchange will actually allow for such a small transaction.

Instead, the amount of money used to purchase bitcoin becomes a fiercely personal consideration, one that depends almost entirely on financial health and goals.

Strictly speaking, the bare minimum amount required to purchase bitcoin using a bitcoin exchange like Coinbase is about $2. However, bitcoin’s price currently hovers around $12,800—with that kind of exchange rate, how much is $2 really worth?

That’s why many servicers, like Bitcoin Dealers, require a higher minimum investment. For us, that minimum is $500; this is an amount that ensures investors could actually see some returns once they buy bitcoin. It also means that their digital wallets won’t wither away to nothing should bitcoin experience a downturn.

In order to buy and sell bitcoin, a user needs a bitcoin wallet. Bitcoin wallets are just private keys that allow a person to transfer their digital currency in the public ledger to another user, or to trade cryptocurrency for fiat currency. The hassle of creating this hardware wallet is really not worth an investor’s time for less than $500.

This is not to say, though, that $500 is the most a person should invest. In reality, it all depends on the individual’s finances. Because bitcoin can be volatile, a person should only invest heavily in cryptocurrency if they can afford to lose money. Sure, some brave souls struck the big time in 2017 after investing their life savings in bitcoin, but this is the exception, not the rule.

In turn, the true minimum amount required to buy bitcoin depends entirely upon the buyer’s bank account. $500 is certainly a good jumping off point, but true gains are much more likely with a greater investment.

Making the decision about how much or how little bitcoin to buy can feel a little dizzying without proper guidance. The reality is that those who aren’t well-versed in cryptocurrency might lack the practical knowledge to make an informed decision, and that’s okay—we’re here to help.

You’ll feel much more comfortable making the investment if you’re working with a reputable Australian bitcoin dealer. Visit one of our locations in Sydney, Melbourne, or Adelaide to discuss the right minimum for your particular situation, and we can help you dive into your bitcoin journey.