You can invest as low as $1 in Bitcoin, which is advisable for beginner traders still learning the ropes. Of course, this investment will only give you a fraction of the digital currency. Here is how bitcoin investments work.
Bitcoin – world’s most expensive cryptocurrency
When people talk about cryptocurrency, bitcoin readily comes to mind because it is the most popular in the world. In November 2021, it crossed the $60,000 mark – which means that if you owned 1BTC, you could sell it for this amount. Five years ago, this value would have been unthinkable, but the digital currency has withstood several odds and continues to surge.
Expectedly, the rise has attracted support from lots of tech industry shapers and financial corporations. This has made it intimidating for the ordinary person looking to enter the bitcoin space. While people are investing thousands of dollars in it, you can start small.
How to start bitcoin investment with $1
Cryptocurrency exchange platforms are like brokers that deal with the bigwigs directly while breaking down the investment requirements for the ordinary person to be able to invest. For example, https://yuan-paygroup.com allows Chinese residents to buy and sell cryptos in China. This would ordinarily be impossible because of the government’s regulation, but they are approved to carry out this activity on behalf of citizens. Now, you may find it difficult to find a person who wants to sell a portion of their bitcoin for $1 on your own. Again, crypto exchange platforms step up to save the day. They offer these sales on behalf of owners by buying in large quantities and breaking them down or accumulating small sales and combining the value into something significant enough for a seller.
Let’s say A wants to sell 0.5BTC for $30,000, and they come to an exchange platform offering this service. The platform, in turn, links potential buyers looking to buy small quantities and begin selling portions of the BTC equivalent to their money until the entire crypto is depleted.
Related article: How to open a bitcoin trading account and start trading today.
If you are looking to start a bitcoin investment with $1, here is a step-by-step process:
- Locate a suitable platform that offers a minimum as low as $1 and register with it.
- Next, after you complete the registration process, you get an equivalent of your money, and you can begin trading how you choose.
Here is an article that explains the best tips for beginner traders: 8 Tips Used By Successful Bitcoin Traders In 2021. This is not all you have to take note of; look out for these pitfalls when you start trading.
Pitfalls to look out for before trading bitcoin with $1
The appeal to begin trading cryptocurrency with as low as $5 (or even lower) can blind some from taking a lot of the following factors into consideration.
– Hidden Fees: When buying bitcoin in small quantities, you should look out for hidden fees as it could defeat the purpose of ‘starting small.’ Some platforms have the habit of hiding what their charges are until you have put your money in and you find out that before you can withdraw, you have to surmount a mountain of obstacles like withdrawal fees, minimum trading volume, duration of investment, and so on.
– Identification: Traders may be let in on a platform through ‘special considerations.’ Some of these may be trial periods or test trades; regardless, look out for exchange services that may require some weird identification requirements that you may be unable to complete and end up getting your funds stuck.
– New or untrusted exchange services: Every day, there appear to be a hundred new crypto exchange platforms claiming to offer mouthwatering services. It will be wise that you don’t believe everything you see on the internet. Instead, do your own research to find out if a service is actually trustworthy or there for a short while to run away with your investment. Coinmarketcap has a list of top cryptocurrency exchanges, and you can pick from there which ones meet your requirements.
Ultimately, when you have successfully started your bitcoin trading journey, things will be looking less foreign than they do at this time.
Conclusion
Like other forms of investments, having more funds make it easier to get started. However, in bitcoin trading, having as low as $1 should not be a deterrent, as this article has shown. You only need to know what you are looking for and understand what your limitations are to begin your investment journey. Also, it is to your advantage, as a new investor, that there are trading platforms that allow very low minimum deposits. This way, you can invest money that you can afford to lose.
Remember that not all that glitters are gold; carefully investigate any platform that you want to trust with your money before giving it up.
You may also like to read our latest article, Everything you need to know about mining cryptocurrency from home.
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