What is the Minimum Amount to Invest in Bitcoin?

The high-profit margin associated with Bitcoin (BTC) investment has prompted widespread adoption of the asset. People who once considered BTC as passive income are now active investors. 

With BTC’s outstanding performance over traditional assets like gold, stocks, shares, and commodities, several conventional investors are delving into the industry, with some still trying to figure out what it takes to get involved with the asset.  

One of the major questions crypto newbies have repeatedly asked is: what is the minimum amount of Bitcoin prospective investors can purchase. 

Interestingly, there is no minimum or maximum amount of BTC investment. 

Regardless of your financial status, you can delve into bitcoin investment by buying just a fraction of BTC known as sats (named after the asset’s pseudonymous founder Satoshi Nakamoto). 

Based on Bitcoin’s design, there are 100 million Sats in 1 BTC, and investors can purchase as little as a fraction of BTC, illustrated as 0.00000001 BTC. 

According to the current market rate, 0.00000001 BTC is being exchanged at $0.00027. 

However, the value seems so insignificant that cryptocurrency exchanges will not process such a transaction due to certain reasons. 

Given this, certain factors influence the minimum amount you can invest in bitcoin, and they include: 

  • Cryptocurrency Exchanges 

The minimum amount of BTC you can purchase varies across exchanges. Although investors can acquire a fraction of bitcoin, exchanges have the right to decide their minimum BTC purchase. 

While some exchanges may allow users to buy $2 worth of BTC, others may require users to make a minimum bitcoin purchase of less than $1. 

  • Transaction Fees

Regardless of the price a trading platform sets as its minimum bitcoin amount, investors should consider the transaction fees. 

Trading fee is one of the major sources of income for crypto exchanges, and there is no benchmark fee for exchanges. 

Some trading firms can choose to charge as high as 5% of your investment, while others may charge a lower fee of less than 1%. 

Based on fee variation, investors should conduct due diligence to select a trading platform that offers the best competitive fees. 

  • Risk Appetite 

The crypto market is highly volatile. A coin’s value might spike by more than 70% in less than an hour, and the next minute, it has plummeted by a large margin. 

Due to the high volatility of the crypto market, investors are urged only to invest an amount they can afford to lose. The minimum amount one can invest in BTC varies based on the individual’s risk appetite. 

A trader may consider $1,000 as his minimum BTC investment without exercising any fear, while someone else may be scared of his $10 capital because of a mere cryptocurrency news headline.

  • Profit Oriented 

This is one of the factors that influence users’ minimum BTC purchase. The higher an investment, the higher the gains, and vice versa. 

Certain people may be motivated to commit large amounts of funds when making bitcoin purchases, with the hope of raking in lots of profit when the asset’s price soars. 

If things do not go as planned and the market becomes bearish, the investor is sure to lose large amounts of his capital. 

  • Location 

Since not all crypto exchanges work in all jurisdictions, the minimum amount of BTC you can purchase varies according to where you are located. 

For instance, a U.S.-based exchange with a minimum bitcoin amount of $1 may be restricted from operating in Nigeria, where most trading firms in the country pegged their minimum amount at $10. 

In some countries like Cuba, where there are few crypto exchanges, bitcoin investments incur a premium. 

Popular Crypto Exchanges That Offers Lower BTC Purchase 

  • Binance 

World’s largest crypto exchange by trade volume Binance is one of the best platforms newbies can purchase BTC. 

The exchange works in several countries, and users are allowed to buy as low as 0.0001 BTC worth around $2.70 at press time. 

Binance has the most competitive fee in the market, as users are allowed to pay a transaction fee of 1.4% for every purchase. 

  • Gemini 

Launched in 2015 by Tyler and Cameron Winklevoss, Gemini is among the best crypto exchanges that support a lower amount of BTC purchase. Gemini users can purchase a minimum amount of 0.00001 BTC ($0.27) while paying a transaction fee of up to 1.49%. 

  • Coinbase 

Coinbase is one of the earliest crypto exchanges. Coinbase users can make a minimum BTC purchase of $25, which attracts a transaction fee of 1.49%.   

Conclusion 

As stated, there is no minimum or maximum amount you can invest in Bitcoin. The least amount of BTC you can acquire depends on several factors, including cryptocurrency exchanges, risk appetite, location, trading fees, and profit. 

It is left for you to carefully examine the factors to determine the minimum amount of BTC suitable for you.  

Why Do Many People Hate Bitcoin

Within a few years since Bitcoin was created, it has managed to gather an army of supporters. These supporters are convinced that Bitcoin has the potential to revolutionize the current financial system.

Nonetheless, there are still many people who hate the concept of bitcoin and have sworn to never invest in the asset. Below are five reasons why many people hate bitcoin.

Five Reasons Why People Hate Bitcoin

  • The anonymity of Bitcoin’s Creator

Bitcoin was created by an unknown person or group of persons under the pseudonym Satoshi Nakamoto. The anonymity of Bitcoin’s creator is often the main reason why many people dislike the cryptocurrency.

Many people feel that they can not trust a technology developed by someone they do not know. Therefore, they discard the cryptocurrency’s merits. 

However, it is important to note that the anonymity of bitcoin’s creator does not affect the performance of the digital asset in any way. This is because bitcoin’s source codes are open source and can easily be verified by anyone on the blockchain.

The anonymity of Bitcoin is also the main reason why it is so successful. The consensus mechanisms put in place ensure that operations carried out on the blockchain satisfy the interest of every participant.

  • Bitcoin’s Intangibility

Many people argue that since bitcoin is not backed by any tangible asset, it has no intrinsic value. The notion is that intrinsic value can only be attributed to physical assets.

Gold is often used as a case study when issues regarding intrinsic values arise. Although bitcoin has many of the properties of physical gold, earning it the nickname “digital gold”, it is not backed by any physical asset and is perceived by many people as lacking intrinsic values.

However, since value is quite subjective since it can be determined by the opinions of people, there is always a high demand for anything deemed valuable by a lot of people.

With that in mind, it will be unrealistic to view bitcoin as an asset that lacks intrinsic value simply because it is not backed by anything. Although bitcoin is intangible, it has a lot of very valuable use cases.

Bitcoins value lies, not in any physical asset, but its utility, network, and adoption. Bitcoin users do not have to go through intermediaries or wait in long lines to complete transactions. Bitcoin can be sent from one end of the world to the other end in a matter of minutes, if not seconds, at incredibly low charges.

Bitcoin transactions are immutably stored in the blockchain ledger which is open and can be verified by anyone on the blockchain. Its scarcity, which is fostered by the fixed supply of 21 million coins, protects it from the risks associated with inflation.

  • Bitcoin’s Extreme Volatility

Volatility is perhaps the major reason why so many people hate bitcoin. The sudden and unexpected changes in the asset’s price are the reason why many people have labeled it a scam.

Bitcoin’s price can quickly rise to high peaks. Investors basking in the euphoria of making profits may be left scratching their heads in losses only a few hours or minutes later. No secret trading tips can protect investors from this tricky Bitcoin feature.

However, it will be unreasonable to judge the credibility of an asset based on its volatility. Any asset traded on a public market is often affected by market dynamics – the forces of demand and supply – and bitcoin is not an exception.

  • Use of Bitcoin For Illicit Activities

This is one of the most prevalent reasons why many people hate the idea of investing in Bitcoin. Some bad individuals in the cryptocurrency industry have taken advantage of bitcoin’s anonymity to commit a lot of crimes. 

Bitcoin has been used to fund terrorist attacks, purchase illegal drugs, and money laundering. Since the identity of the participants conducting transactions on the blockchain is anonymous, they can not be traced to the individuals involved.

However, the activity of a small number of bad eggs in the industry should not be used to evaluate the credibility of the entire cryptocurrency industry. There are several beneficial use cases of bitcoin that overshadow these nefarious activities.

  • Poor Regulation and Network Security 

Although bitcoin and cryptocurrencies, in general, are not the only assets to experience security issues, bitcoin hacks leave users with little to no chances of ever getting their funds back.

Since bitcoin is decentralized, without the need for any central authority, the activities going on in the blockchain are not regulated. This is a huge turn off for many people.

Without any centralized authority to monitor affairs, individuals with questionable intents make use of the network and defraud millions of people. Many of the most popular internet hacks had been carried out on Bitcoin exchanges, resulting in huge losses.

Conclusion

Although Bitcoin has a lot of beneficial use cases, it will always be perceived negatively by those who are ignorant of its potential. It is therefore left for all those in the crypto industry to change people’s negative perceptions of Bitcoin and cryptocurrency in general.

By bringing the usefulness of Bitcoin to the fore and fishing out the bad eggs in the industry, these negative views can be corrected.

Creating bridges between Kenya and the Blockchain Economy

One of the main objectives of this project is to integrate the unbanked population into conventional finance, taking advantage of new technologies, especially the Blockchain. This offers the possibility of decentralized finance (DeFi: Decentralized Finance), and even more so if you take into account the mass adoption of mobile money in Kenya.

This scenario is beneficial for both those who have banks and those who do not. Features such as convenience, speed and low transaction fees also attract more and more, those that are banked.

On the other hand, it is known that despite the numerous potential benefits of Blockchain technologies for the developing world, sub-Saharan Africa still lags in the adoption of cryptocurrencies. But if this progresses, stable currencies could provide distressed communities with access to capital, liquidity and the gateway to global markets.

What are the underlying problems and challenges?

  1. Lack of dedicated crypto markets. Cryptocurrency exchanges, today, do not provide a direct mechanism to enter and exit the markets in the Kenyan Shilling quickly.
  2. Cryptocurrency Volatility Despite the growing interest of Kenyan merchants to adopt the blockchain, most are still sceptical about the possible loss of value due to the price volatility associated with cryptocurrencies.
  3. Regulatory uncertainty The Central Bank of Kenya has hesitated to recognize cryptocurrencies as legal tender, mainly due to its anonymous nature. The institution has advised, again and again to the general public, not to negotiate with cryptocurrencies, which further inhibits adoption.

The TokenPesa solution for Kenya and the world

Decentralized finance (DeFi: Decentralized Finance) encompasses a wide range of categories: from stable currencies, insurance and prediction markets, to decentralized exchanges. But fortunately, DeFi projects can be composed together, to form higher-order entities.

And this is where the TokenPesa comes into play, which is a triple solution of Decentralized Finance, which aims to boost the adoption of Blockchain technology in Kenya and potentially divert the development of saturated economies to the developing world.
Then we can say that this project aims and embarks on this to create bridges of mutual growth where a solution can be found that integrates a stable federated currency of the Kenyan Shilling with a decentralized network of asset management and exchange, to allow a vibrant Kenya blockchain ecosystem.

TokenPesa Reach

In essence, the TokenPesa network consists of:

1) Wrapped KSH *: An asset-backed token (stablecoin) that is linked 1: 1 to the value of the Kenyan Shilling
TokenPesa DAO *: Asset Management and Asset Management of Decentralized and Autonomous Token Wrapped KSH
PesaDEX *: A decentralized digital asset exchange network (DEX) that exchanges Wrapped KSH for multiple ERC20 tokens, for example (WKSH-HOT)

Wrapped KHS (WKSH) is an ERC20 token on Ethereum backed 1: 1 by Kenya Shilling. The WKSH follows the framework of wrapped tokens, but instead of relying on multiple custodians, it is based on a single network custodian and a consortium of agents. WKSH uses a simple federated government model and strives to promote usability.

This brings liquidity (the main bridge between the fiat KSH and the world of cryptocurrencies), faster transaction (accelerates the Kenyan Shilling transactions), transparency (fully verifiable mining, recording and transfer events in Ethereum public scouts), fees lower (transactions can be made with rates close to ZERO blockchain and federal government
(All agents in the network will be members of TokenPesa DAO (Decentralized Autonomous Organization).

2) TokenPesa DAO is a strong and scalable Decentralized Autonomous Organization, based on the DAOstack operating system. TokenPesa DAO Token (TDAT) is the native DAO token, while the TDAT reputation is the DAO reputation/voting points.
All DAO members will be holders of the TDAT reputation. Reputation points are non-transferable assets that represent the influence (voting power) that one has on the DAO. However, unlike the native token that cannot be removed from its owner, the reputation can be removed if its holder acts against the interests of DAO.

3) PesaDEX is a hybrid decentralized exchange, based on the Hydro Protocol. The WKSH will be used as the base token in PesaDEX trading pairs, for example (WKSH-WETH, WKSH-TDAT, WKSH-HOT); thus providing a liquidity gateway to and from multiple ERC20 tokens.

PesaDEX does not retain funds or customer information and only serves as a secure layer of order routing and correspondence. Unlike traditional DEXs, Hydro allows the development of decentralized exchanges that are immune to order collisions and frontal attacks.

Other advantages include:

  1. A fast and robust order matching algorithm
  2. Asymmetric rate structures. Trading fees are charged through the base token, WKSH
  3. Market makers get refunds from manufacturers for providing liquidity
  4. Free order cancellation
  5. Share hybrid liquidity

Conclusion

The stable-coin of the TokenPesa Network, decentralized exchange and asset management is simple and mutually beneficial.

Stablecoin allows DEX to provide more intuitive trading pairs and improve liquidity. In return, the DEX provides arbitration and settlement mechanisms, critical processes to keep the currency stable.

Besides, the inherent price stability of the stable currency allows for a consistent decentralized asset management market; while the DEX provides multiple entry points to the ecosystem.

In this way, the best and most reliable growth of an emerging economy could be helped.

Official links:

Web: https://tokenpesa.network
Contact: admin@tokenpesa.network