#CryptoMarketMoves Bitcoin has been hovering around the $70,000 maximum milestone for quite some time. The coin’s price is currently out of the range of low-income traders and investors. That is why it has become important to analyze whether it is better to buy a whole coin. Or, is it also great to buy a piece of the digital asset due to its divisibility feature?
Bitcoin investing is a sensitive topic in the crypto-finance space. During a particular week on Reddit, a discussion about whether people should consider investing in whole BTC caught fire.
Some people questioned the purpose of asking such a question, but it’s crucial to understand the potential consequences of investing in Bitcoin. Millions of people are investing in the flagship crypto without knowing the potential profit that may come their way.
Let us examine the possibilities of buying a whole BTC or just a part of it.
Should you buy a whole bitcoin?
Several factors influence the decision to buy a whole Bitcoin ($BTC ) or just a part of it. Most of the factors revolve around your financial situation, investment goals, and risk tolerance. Here are some of the advantages of buying whole BTCs.
Pros of buying whole bitcoins
Simplified ownership and transfer: This refers to the ease with which users can manage, store, and transfer their digital assets. You can easily keep track of the digital coin by purchasing a whole BTC and storing it at a specific location.
Potential for higher returns: Once Bitcoin’s price increases significantly, you stand a greater chance of seeing huge returns. Consider this example. On March 17, 2020, BTC was exchanging hands for $5,000. If you had purchased 1BTC on that day, your investment could have soared to around $68,000 on March 17, 2024. The difference is $63,000 (1,260%), which is a significant windfall for a coin that fell on its knees during the COVID-19 year.
Cons of buying whole Bitcoin
Some of the disadvantages of investing in Bitcoin as a whole coin include:
Higher upfront costs: The largest digital asset by market capitalization is currently trading for around $67,000. This makes it extremely expensive and mostly out of reach for beginner traders.
Market volatility has the potential to cause massive losses. The crypto finance market is highly volatile. There can be uptrends today and downtrends tomorrow. While a massive price spike will lead to huge gains, a repeat of the crypto winter will result in steep losses.
Should you buy a fraction/part of Bitcoin?
Buying fractions of Bitcoin depends on several factors, such as your financial goals and your risk appetite. While many believe whole coins are the way to go, others believe in fractions. Let us examine some of the pros and cons of buying fractions of the most popular coin on the market.
Pros of buying fractions of the cryptocurrency
Lower upfront cost: This is great for beginners, as they can buy BTC for as little as $1. This helps them get a feel for how cryptocurrency investing works in the near, medium, and long term.
Diversification of investments: Buying fractions of a coin means that you have enough money to pump into other coins. While BTC is the most sought-after, others, such as Ethereum ($ETH ), ApeCoin ($APE ), and #DOGSONBINANCE , show promise. Diversification is important because, for example, if BTC isn’t bringing in gains, others will.
Cons of buying fractions of the digital asset
Complex ownership: The ownership and transfer of cryptocurrency is influenced by numerous factors. Wallets, exchange integration, mobile applications, and custodial and non-custodial services are part of crypto ownership and transfer. Keeping some coins on one platform and others on another is risky. You could lose your private keys. More importantly, an exchange can collapse (like FTX). Keep track of your fractions: The complexity around fraction ownership is not great for those who can’t keep track of their assets.
We have outlined the pros and cons of owning a whole or fraction of Satoshi Nakamoto’s blockchain-backed coin. Should you buy a whole coin or just a piece of BTC?
Should you buy a whole BTC or just a fraction of it?
You should buy whole coins instead of fractions, especially for higher-priced cryptocurrencies like BTC. This is because at $70,000, buying, let’s say, $1,000 worth of Bitcoin will give you 0.01428571 BTC ($1,000/$70,000).
Please be aware that cryptocurrencies possess a divisibility factor, allowing for division into decimal points.
On the other hand, if someone buys $70,000 worth of the same coin, they would get 1 BTC ($70,000/$70,000). This is where it gets interesting. You need to pay close attention. Before a person with a whole coin can realize 100% gains, BTC needs to rise sharply to $140,000 from $70K. Such a spike increases the portfolio of the person who bought $1,000 worth of BTC by $1,000. So your portfolio will total $2,000. In the same way, the one with a $70K investment will see his investment increase by $70K to $140,000.
This is the reason we believe millions of people are investing in Bitcoin without receiving any returns. Understand simple percentages, as well as, more importantly, percentage change. This will help you understand whether you should settle for BTC (higher-priced coins).
But whatever happens, always understand that investing in Bitcoin and other coins comes at a high risk. Invest in what you can afford to write off as bad debt due to the market’s unpredictability.
Frequently Asked Questions (FAQs): Should I buy a whole bitcoin or just a piece of BTC?
Below are some of the most frequently asked questions about investing in BTC as a whole or in pieces.
Should you buy one full bitcoin?
Yes! You should buy one full bitcoin. At $70K, Bitcoin is extremely expensive. Despite its price, buying a whole BTC is the only way to maximize gains in the long run. Before you can see 100% gains in your investment, BTC needs to double in value.
Investing $500 now will increase your investment to $1,000 in the future, should the coin reach $140,000. Buying $10,000 worth of the most popular crypto asset will see your portfolio spike to $20,000 (double). So if you can, buy a whole coin.
Some advantages of buying whole coins include simplified ownership, transfers, and huge potential returns. Some of the disadvantages include a relatively higher upfront cost and relatively higher potential losses from unforeseen macroeconomic indicators.
Is it worth buying $100 of Bitcoin?
No, it is not worth buying $100 worth of Bitcoin. At $70,000, buying $100 means that you would get 0.00142857 BTC ($100/$70,000). The only way to see a 100% change, which will give you $200, is for the digital coin to test $140,000. It would take massive individual whales and institutional investors to bring the crypto asset to such a price. Many analysts predict that the coin must reach $100,000 by the end of 2024 to test such a valuation.
Is it worth buying small amounts of Bitcoin?
Yes, it is worth buying small amounts of bitcoin if the idea is to add up to a whole coin. Buying fractions has several advantages, including lower upfront costs. Aside from that, you can also diversify your crypto-investment portfolio with other digital assets.
How much Bitcoin should you own?
You should own at least 1 BTC. Many proponents, such as MicroStrategy’s Michael Saylor and others, forecast higher prices for the coin. Owing a small piece would not help you long-term. Own a whole BTC now, so that if it reaches $1 million in the future, you will have at least $900.000 in profit.
