Mar 012015
 

How to Buy Fractions of Bitcoin

Firstly, yes, you can buy fractions of Bitcoin. Each Bitcoin is divided into 100 million units, each called a ‘satoshi’. If you’re looking how to buy fractions of Bitcoin, the process is similar to buying a full Bitcoin. However, when you only want to buy smaller amounts of Bitcoin, there are some additional ways you can do so, which don’t scale up if you’re looking to invest tens of thousands of dollars. Before we proceed, here is a quick Bitcoin conversion guide to keep things straight.

Bitcoin is a cryptocurrency that can be divided up to 8 decimal places. That means you can easily buy fractions of a Bitcoin, even if you can only afford one cent! Just to get you familiar with the terminology, here are the conversions:

1 mBTC (milli-Bitcoin) = 0.001 Bitcoin or 1/1000 of Bitcoin (a thousandth of a Bitcoin)

1 uBTC (micro-Bitcoin) or 1 bit = 0.0000001 Bitcoin, or 0.001 mBTC (a millionth of a Bitcoin)

1 satoshi = 0.000000001 Bitcoin or 0.01 uBTC (a satoshi is the smallest unit of Bitcoin)

Note: bits is becoming more and more popular method of denoting the number of Bitcoin, and you generally don’t have to deal with pesky decimal places!

If you’re living in the United States or most of Europe, the easiest and most trusted way is to buy Bitcoins at Coinbase (This is a full list of countries served by Coinbase: Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States). If you use this link, you’ll get $10 of Bitcoin free when you purchase $100 worth of Bitcoin. You can buy fractions of Bitcoin here without any issues, such as $100 worth of Bitcoin, or $500 worth of Bitcoin, no matter the current price.

This is a company valued at $400 million, and raised $100 million in its last funding round and is valued at a cool $1.6 billion. It is a trusted player in the space. You can buy Bitcoin by linking your bank account, and you can buy even small fractions of Bitcoins. When you initially login, the funds might take up to 3 days to appear in your account, after which you can purchase Bitcoins. You can also sell Bitcoins via Coinbase, and you can use it as a convenient online Bitcoin wallet. In addition, they offer multi-signature wallets too, which means Coinbase will no longer have any custody of Bitcoins.

In recent months, a formidable challenger to Coinbase has emerged: Circle. Circle doesn’t charge you any fees (although its prices to buy Bitcoin tend to be a little higher than Coinbase), and the best thing is, you can buy Bitcoin through credit cards. This is not possible at Coinbase. However, you have to pay the credit card processing fees in that case. You can avoid this fees by linking your bank account, just like with Coinbase. How to buy fractions of Bitcoin with Circle? Just enter the dollar amount, even as small as $10 and Circle will buy it for you. Note that Circle has currently stopped selling Bitcoin. However, Cash App from Square is an alternative.

Coinbase and Circle are the best ways, but if you’re looking for options, you can try Expresscoin or BitcoinInsanity. Both these places allow you to buy fractions of Bitcoin through credit card. BitcoinInsanity also allows you to buy through PayPal. However, the prices are higher.

For peer-to-peer trading, LocalBitcoins is a nice option. Use this if you’re outside the United States (or really want privacy with your Bitcoin purchase) and it’s hard to buy on online exchanges in your area.

Here are some other trusted places you can buy Bitcoins online in various countries:

US: Coinbase or Circle

UK: Coinbase, or check out this guide written by Coindesk. Be aware of the fees, which seems to be the norm for UK exchanges

Europe: Coinbase operates in these European countries, and should be the best option: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Malta, Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland

India: Unocoin

Philippines: Coins.ph or Rebit.ph

Finally, if you just want a small fraction of a Bitcoin and willing to work online for them, there are a few options that you can explore (the payout is usually much lower than having a full-time job, so take that into consideration) in my Free Bitcoin Guide.

Photo Credit: Chris Devers

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  8 Responses to “How to Buy Fractions of Bitcoin”

  1. Most people in the US have heard of Coinbase while many of them have no idea what or how bitcoins work. I think this is something that should be offered as a class option in High School or College. I believe some Colleges have done this, but I am not 100%. Either way, I did enjoy the information your previded and will be sharing it around. Thanks!

  2. https://bitaps.com – Bitaps is a full node, Bitcoin Block Explorer with embided wallet and bitcoin merchant API for commerce.

  3. Excellent article w/purchase info. about Bitcoin. Would like to know more about it as it relates to other types of currency & future financial trends. I have heard outside groups can’t influence it (like Fed. Reserve) and it can’t be leveraged or inflated, because you have to have a bitcoin to sell it.

  4. Thanks for the info.
    At over $3000 I thought Bitcoin was way out of my price range, but now that I know you can buy fractions of them, I might seriously consider investing in them.

  5. You have incorrectly calculated the fractions of Bitcoin.
    1 (micro-BTC) is 0.000001 NOT 0.0000001 and satoshi too.

  6. I am living in Africa, Nigeria which trusted Bitcoin company should I start buying bitcoin from. Apart from that where will I get the knowledge and skills in mining bitcoin myself? I am completely new about bitcoin and I wish I have my own bitcoin. Please help me out.

  7. I am living in Mexico and found I could not buy MaidSafe, a derivative of bitcoin in this country when i opened and account in Coinbase. I now see it is possible to buy fractions of bitcoins and wish to do so. How would I buy $100 usd of bitcoin? I have a brokerage account, Charles Schwab that I trade from here in Mexico. I have the symbol for bitcoin and could buy it here via my Schwab brokerage acct. but don’t know how to purchase fractionally. How would I buy $100 of bitcoin via my schwab online acct’ thank you!

  8. I am living in Mexico and found I could not buy MaidSafe, a derivative of bitcoin in this country when i opened and account in Coinbase. I now see it is possible to buy fractions of bitcoins and wish to do so. How would I buy $100 usd of bitcoin? I have a brokerage account, Charles Schwab that I trade from here in Mexico. I have the symbol for bitcoin and could buy it here via my Schwab brokerage acct. but don’t know how to purchase fractionally. How would I buy $100 of bitcoin via my schwab online acct’ thank you!

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