As you already know, Bitcoin is by far the largest and most valuable cryptocurrency in the world. With a total supply cap of 21 million coins, Bitcoin’s popularity has significantly risen in the last ten years. If you wanted to buy one Bitcoin right now, you would have to pay $57,000. That is an astronomical surge compared to the $7,000 price in January 2020.
Plus, Bitcoin is gradually taking over digital wallets like Venmo as a payment method. People can use Bitcoin from all around the world to transfer money or buy goods and services. At the same time, they pay far less on fees and don’t struggle with significant delays. That’s the main difference between Venmo and Bitcoin.
So, there’s no surprise that many people all around the globe are looking to reap incredible profits by investing in Bitcoin. However, such a drastic rise in value has left many wondering: how much does it cost to invest in Bitcoin?
Thankfully, not that much. Keep reading the article to find out the answer!
Crypto Exchanges and OTC Desks
If you’ve had any experience with purchasing crypto, you know that a wide range of crypto exchanges allow you to buy a fraction of Bitcoin. You can invest in Bitcoin for as little as $10. All you have to do is determine the investment amount and let the exchange calculate its equivalent in Bitcoin based on the current prices.
Crypto exchanges are sensible options for taking small steps initially, but there’s a cap on the investment amount. Most exchanges do not allow you to trade more than $1,000 worth of Bitcoin because they don’t have the liquidity to support such big transactions.
That’s one reason why many have decided to buy Bitcoin OTC. They offer more liquidity and don’t impose limits on the number of daily trades or even the deposit/withdrawal amount. Plus, there’s less concern about your financial and personal information security because you’re not required to provide personal information on the OTC platform.
On top of that, since there’s no middleman involved in the process, OTC desks usually handle Bitcoin transactions faster than regular exchanges.
Watch for the Fees
In addition to the cost of Bitcoin itself, there’s one other factor that can add to the cost: The fees. Unlike the price of Bitcoin, there’s no unified cost structure for how much you pay as fees. Crypto exchanges offer various fee structures, but there are no exchanges that charge zero.
Needless to say, you should shop around and find an affordable option. After all, it doesn’t make sense to buy $30 worth of Bitcoin and pay $10 in fees. Crypto exchanges charge fees in different stages of the process: When you deposit, when you make the trade, and when you withdraw:
- Deposit Fees: Different platforms charge different amounts. However, the deposit method can affect the cost of the transfer. For instance, most providers consider bank transfers a zero-cost approach, but using credit or debit cards will bump up the cost by 3%.
- Trading Fees: Some platforms transparently declare their trading fees, while some may charge hidden fees. In most cases, however, OTC desks charge less than crypto exchanges.
- Withdrawal Fees: Every platform has its own way of getting withdrawal fees. In some, you need to pay a fixed amount each time you cash out. Some others may take a percentage of your withdrawal amount.
How Much Should I Invest in Bitcoin?
As said before, the good news is that you don’t have to buy one whole Bitcoin for $57,000! You can invest as little or as much as you like.
However, the continuous fluctuations in Bitcoin’s value should be enough to show you that the crypto market is inherently volatile. So, just like any other investment, the general rule of thumb is you shouldn’t invest more than you can afford, especially if you are a beginner!
It Costs Little to Buy Bitcoin
Bitcoin can be an excellent gateway to start investing in the crypto business. Despite its fluctuations, countless reasons suggest Bitcoin will be the future. Not only is it a profitable asset for investment and trading, but it has also become a popular medium of exchange in the online world. It’s a decentralized asset free of political intervention, and people all around the world can buy it, no matter which country they reside in.
So finally, how much does it cost to invest in Bitcoin? The answer is not much. And for those who are wondering, does Bitcoin gain interest? The answer is yes.
There’s no need to worry about getting started because we at Secure Digital Markets provide the expertise and tools to put individuals and businesses on a fast track to stay ahead of the curve. So, don’t hesitate to contact us as our team of experts is ready and waiting to help you.