If you are interested in the cryptocurrency market but do not have a high initial investment value, you have probably wondered if there is a way to invest in Bitcoin with little money.
This is the situation for many investors in the digital market, especially with the recent popularization of assets such as cryptocurrencies. The niche has gained significant growth, mainly due to the significant appreciation that products such as Bitcoin have shown in recent years.
In October 2021, the coin reached an all-time high, worth more than 60 thousand dollars. According to the G1 portal, Bitcoin has appreciated about 122% in just one year.
With a high valuation, it is common for many people to believe that, to invest in this market, it is necessary to have a large budget available. However, the flexibility of crypto-assets is already changing the financial market and makes it possible for novice investors to enter from affordable minimum values.
So, if you are looking to know how to invest in Bitcoin with little money, keep following the guide we have prepared on the subject. Get to know all the details about the most popular cryptocurrency in the segment, and see the alternatives to become a digital investor spending less.
How to Invest in Bitcoin?
When we talk about how to invest in Bitcoin with little money, many interested parties are more reluctant, believing that trading can only be done in a traditional way, and with that, through the full value of the asset.
Usually, this is the dynamic most associated with cryptocurrencies, especially because of the autonomy among investors and the non-intervention of the State in transactions. In this case, users have the freedom to trade their Bitcoins independently, based on the appreciation of the market and the volatility that the currency presents.
This method is called P2P, or People to People, in free translation. In other words, the asset is transferred between two parties electronically, without issuing authorization from the Central Bank.
However, what many novice investors may not know is that there are other ways to buy Bitcoin. Even through secure and certified intermediaries, such as cryptocurrency exchanges, called Exchanges.
With this, a world of new possibilities opens up, bringing options such as investing in Bitcoin with little money, or indirectly.
For those who are still learning more about the subject, check out some ways to invest in Bitcoin without using the conventional person-to-person method:
Starting with Exchange, this is one of the most traditional and simple ways for those who want to know how to invest in Bitcoin with little money.
Cryptocurrency exchanges like Binance work in a similar way to traditional operators, with the difference that their operations focus on the digital asset market. In this way, they are developed and programmed to meet the needs of different investor profiles, including those with a low initial investment value.
Through an Exchange, the customer can acquire fractions of Bitcoin, to the extent of 1 hundred millionth of Bitcoin (0.00000001 BTC), which considerably reduces their total investment value.
In addition, cryptocurrency exchanges also have advantageous features for new profiles, such as security and less bureaucracy to invest. The user makes the contribution, transfers the amount to his account, and requests the investment to the exchange. Then, the institution takes on all the main steps, such as performing the fractionation and the security measures required by blockchain technology to validate the transaction.
In this way, the investment will start to yield as another traditional asset, allowing the user to manage their cryptocurrency fractions with greater freedom, choosing to resell or keep the currency in their wallet.
In addition, the Exchange allows alternatives to invest in Bitcoin with little money without harming the possible returns and appreciation of the clients’ assets.
Meanwhile, for those who want to know how to invest in Bitcoin with little money and without the bureaucracy of opening a brokerage account, you can opt for a cryptocurrency ETF.
The Exchange Traded Fund, or Index Fund, as it is popularly known, refers to an investment that uses a reference indicator when building its portfolio. Thus, the fund starts to replicate the behavior of a theoretical portfolio developed based on the behavior and analysis of this index.
At the same time, investors who have invested funds in an ETF have the security of secondary movements, but without giving up income.
With this, a cryptocurrency ETF allows the creation of an investment fund based on indicators of Bitcoin and other virtual currencies. Thus, when currencies move, the fund also reproduces this appreciation or devaluation, but in an indirect way. In other words, investors have greater security in their digital assets, without taking as many risks as with direct investment in the market.
In addition, one of the main characteristics of investing through a cryptocurrency ETF is the amount invested. Index funds are often considerably more affordable than direct investments in Bitcoin fractions, as their shares cost less than US$18.
Trade and Invest in Bitcoin today with Binance
Also, they can present a varied basket of composition, including other cryptocurrencies, such as HASH11. Thus, they allow not only greater security for the investor, but also diversity in the composition of their portfolio.
Of course, there are also ETFs that replicate Bitcoin-only indices, such as BITH11 and QBTC11. The variety of options for the user to choose from is also a plus point of these funds.
With a cryptocurrency ETF, it becomes possible to invest in Bitcoin with little money, albeit indirectly.
3. Investment fund
Finally, traditional mutual funds are also interesting alternatives for those who want to know how to invest in Bitcoin with little money.
These assets are most popular among active users of the financial market and act through indirect management by an administrator. Thus, several investors apply resources in a collective fund, reducing the risks for all profiles.
Meanwhile, the fund is composed of the desired assets in each category, which can be exclusively Bitcoin, or a varied portfolio with other cryptocurrencies and assets of different classes.
In addition, the advantage of investment funds is that they allow investors to act through the stockbroker. In this case, users who prefer to rely on traditional brokerages, rather than exchanges, have this more affordable alternative.
On the other hand, the returns will be lower than a conventional investment in Bitcoin, directly, for example. However, risk and volatility are also diluted. So, for those looking to invest in Bitcoin with little money, indirect options, such as an investment fund, can be interesting.
What is the minimum amount to invest in Bitcoin?
For those looking for ways to invest in Bitcoin with little money, one of the main doubts is the minimum amount of application. However, it is important to note that there is no minimum amount to invest in Bitcoin directly.
In other words, investors can choose the application that best suits their profile and budget. This is possible thanks to the divisibility of virtual currencies, generating fractions of Bitcoins that remain valid if the investor wishes to continue trading.
In this way, it is possible to invest in cryptocurrencies with $ 18, $ 9, and even $1. In this case, the investor will have a part of Bitcoin in his wallet, and, with market movements, he will be able to choose whether to sell or keep the currency.
As of the date of this article (December 2021), a Bitcoin coin costs around US$36,300. However, the minimum investment amount is not necessarily the full price of a unit.
If the investor wants to invest US$1.8, for example, he can purchase 0.000036 of Bitcoin. The fraction will remain in your wallet, according to the Exchange, and will continue to earn and appreciate, just like other currencies.
Thus, there is no minimum amount to invest in Bitcoin directly.
On the other hand, if the client chooses other alternatives, such as investment funds or ETFs, he must respect the minimum total for each fund, which varies daily.
How much does Bitcoin earn?
For those interested in Bitcoin, one of the main questions is how much the currency yields, and if it is, in fact, an interesting application.
In recent years, Bitcoin has shown astronomical growth, and since 2009, the year of its launch, it has reached the mark of 800% appreciation. This is due to a number of factors, such as the evolution of the market, the popularization of digital assets, and the exclusivity of the coin, whose mining decreases with each new crypto released.
In the year 2021, currency movements reached the 122% yield mark in just one year, with new historic numbers. However, according to The Guardian, Bitcoin is still losing out to Ethereum, its main competitor in the cryptocurrency market, which recorded an astonishing 419% yield.
In this case, investors with fractions of Bitcoin were able to register this high during the year 2021, but there is no stability factor in this market. The high volatility of digital currencies is one of their main points of attention, so it is not possible to determine with certainty that the yield will remain at this value, or grow.
In this way, investors looking to know how to invest in Bitcoin with little money should follow the evolution of income periodically, to verify the current appreciation of the currency.
When is the best time to buy Bitcoin?
Novice investors in the digital market may wonder when is the best time to buy Bitcoin. In other words, it becomes ideal to invest resources in cryptocurrencies and achieve the maximum possible returns.
However, like other conventional assets, the best time to buy Bitcoin is when the currency experiences dip and dips in its appreciation.
Despite the increase registered in recent months, the crypto asset usually registers high peaks and also falls in its value. In fact, the high volatility of this currency is also a feature that can help people who are entering the market.
Although it is a high-return investment, its risks are also high, so the value of the coin can rise and fall in a short period of time. Thus, in general, it is recommended to follow the market daily, and identify the movements that are advantageous for Bitcoin buy orders.
Trade and Invest in Bitcoin today with Binance
Meanwhile, waiting for the best time to acquire this cryptocurrency can be indifferent to those looking to invest in Bitcoin with little money. This is because people who wish to apply little capital in their purchase operations can be pre-determined values, influencing only the fraction available. In this case, the differences would be relatively minimal, being a position that mainly influences investors who acquire many fractions in the same negotiation.
However, in general, even when investing little money, the best time to buy this cryptocurrency is when it has dropped in value. It is not possible to determine exactly what these periods are, but more experienced users can predict market movements and how it will behave.
Therefore, it is worth following this shift before actually making an investment.
How to invest in Bitcoin: step by step
Finally, after learning more about cryptocurrencies and understanding how to invest in Bitcoin with little money, the time has come to learn how to perform this operation.
Currently, the diversity of brokers and alternatives available offer the user a greater variety to invest, with more practicality and in a more accessible way. So, check out a simplified step-by-step guide and see how to start safe trading in this market:
1. Look for a broker
First of all, the first step is to look for a certified broker that allows you to make investments with Bitcoin. In this case, the investor must determine their preferences, such as direct investment, through an exchange, or indirectly, opting for a conventional brokerage.
Then, it will be necessary to perform the registration properly, according to the guidelines of each broker. However, this step is usually simple and more accessible, and many platforms offer free registration for new profiles.
After opening an account, it will be possible to proceed with the purchase procedure, carrying out a smoother and more reliable transaction.
Also, choosing a broker is an important step before investing in Bitcoin. This is because each company can operate differently, and make available different fractions of cryptocurrencies.
In this case, if the investor wants to apply fewer resources in his trading, he should pay attention to the proposals that the brokerage offers. Most platforms have the possibility to fractionate Bitcoin into smaller amounts, but it is important to confirm before actually registering.
Meanwhile, for those who opted for indirect alternatives, such as ETFs, it is enough to find a brokerage firm that works with the Stock Exchange.
2. Make the contribution
The next step to invest in Bitcoin is to make the contribution referring to the total amount of cryptocurrencies you want to acquire.
It is common for each broker to have a different method of contribution, but most accept wire transfers to deposit money into the account.
After registering with your preferred brokerage, the profile will already be able to receive the money, which will be in your wallet, to carry out the trade.
The input of the necessary amount is an important step, as it will determine the total amount of Bitcoin that will be possible to buy in that transaction. Also, while there is no minimum purchase amount, some brokers may have their own investment conditions, such as a minimum transfer or withdrawal price. Thus, it is recommended to check these issues with the platform before making the contribution to acquire cryptocurrencies.
In this way, it will be possible to avoid setbacks during trading, and acquire your Bitcoin fractions in a simpler and safer way.
3. Proceed with the Bitcoin purchase
Finally, with the money in account, the investor should just proceed with the purchase of the cryptocurrency in a conventional way. The procedure is not complicated and is usually completed in a few seconds, through the exchange itself, which has its own tools for this type of transaction.
However, the checkout step can be more complicated for those looking to invest in Bitcoin with little money, especially beginner profiles. This is because the technology that allows transactions with virtual currencies can have a more complex operation for those who do not have experience in the market.
Thus, it is recommended that novice users seek specialized advisors, provided by the brokerage itself, to assist in this procedure.
Experienced people who are interested in cryptocurrencies can perform P2P trading on transaction networks, which reduces costs such as administration and brokerage fees. However, the safest and most affordable option is to use the exchange to guarantee the purchase of Bitcoins with greater security.
After completing the transaction, the Bitcoin fraction will already be available in your asset portfolio, just like any other conventional product. To carry out other operations with the currency, such as resale, just call the broker and proceed with the orders in the way you deem ideal.
In general, investing in Bitcoin is a simple procedure, if done through Exchanges and certified managers.
In the case of indirect investment alternatives, such as ETF and traditional funds, the procedure is the same, through the broker.
Is it worth investing in Bitcoin with little money?
Beginner and inexperienced investors may have doubts about the cryptocurrency market, and not know about all the possibilities that surround this niche.
Digital assets interest many profiles, due to the benefits they present and the high appreciation registered in this market, mainly. For this reason, first of all, it is worth knowing how to invest in Bitcoin with little money. This alternative may be unknown to many profiles, who miss opportunities to start a portfolio in the crypto market, or even diversify their portfolio with different products.
Thus, the first step is to understand how to carry out this negotiation with a smaller contribution, through currency fractionation.
It is common for people without much experience to consider cryptocurrencies as a high-profit application, and it is possible to make a considerable profit with this asset. However, returns are proportional to the amount invested, so the less money, the lower the short-term return.
On the other hand, knowing how to invest in Bitcoin with less money also allows the investor to devise different strategies to build their portfolio in the long term. For example, through constant and monthly contributions, acquiring cryptocurrency fractions each period, and building a larger contribution.
In this case, it is only possible to develop these strategies by knowing the market and its possibilities. Thus, it is interesting to learn more about the subject and understand the movements of cryptocurrencies before starting a wallet.
The diversity and volatility of Bitcoin can scare new profiles, but it is important to note that investing in cryptocurrency is possible for everyone, and can bring good results in the future.
Frequent Asked Questions
What is Bitcoin?
Bitcoin is a decentralized virtual currency, which is not issued by the Central Bank and can be used as a payment method for peer-to-peer electronic transactions.
How much does 1 Bitcoin cost?
As of January 22, 2022, 1 Bitcoin costs around USD$ 36,260. As it is a 24/7 and highly volatile asset, its value is constantly changing.
How to make money with Bitcoins?
It is possible to make money with Bitcoin by appreciating the currency, waiting for its price to rise and carrying out sales procedures. In addition, the currency is also used for electronic payments and can be reinvested in other more advantageous products.
Is Bitcoin safe?
Yes, Bitcoin is a secure virtual currency, transacted in an encrypted technology. However, for the investment operation to also be safe, it is important to use a reliable exchange.