If I put 1 dollar in Bitcoin how much will I get

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.Bitcoin (BTC) has seen meteoric growth in

If I put 1 dollar in Bitcoin how much will I get

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Bitcoin (BTC) has seen meteoric growth in recent years. In May 2016, you could buy 1 BTC for about $500. As of May 2022, a single Bitcoin was worth around $30,000. Thats growth of nearly 6,000%.

Some analysts believe the price of Bitcoin could rise even further as cryptocurrency and blockchain technology become a bigger part of peoples daily lives. But buying Bitcoin comes with big risks. Along with impressive gains, BTC has also experienced devastating declines.

After almost reaching $20,000 in 2017, for example, the value of Bitcoin plummeted to around $3,100 in December 2018.

Today, BTC remains a highly volatile asset, and simple things like an ill-timed tweet from Elon Musk can decimate its value. If you want to buy Bitcoin, experts recommend that you invest only a small percentage of your net worth.

What Is Bitcoin? How Does It Work?

Bitcoin is a decentralized digital currency, which operates without the oversight of banks and governments. It holds the distinction of being the first-ever cryptocurrency, launched in 2009.

In the words of its creator, Satoshi Nakamoto, Bitcoin was created to allow online payments to be sent directly from one party to another without going through a financial institution.

Today the entire cryptocurrency market is roughly worth $1.3 trillion, with Bitcoin representing 45% of the market.

While it began life as a payments network, Bitcoin has evolved into an investment asset. Most holders consider BTC to be a store of value, and its often referred to as digital gold.

Bitcoin transactions are verified by crypto miners via a proof-of-work consensus mechanism, and usually take up to 10 minutes to clear. Thats much slower than many competing cryptocurrencies, to say nothing of conventional payments networks.

Still, Bitcoin is accepted as a form of payment by some online retailers and merchants, such as Amazon, Mastercard and Walmart, to name a few.

How to Buy Bitcoin on aCrypto Exchange

To buy Bitcoin or any cryptocurrency, youll need a crypto exchange where buyers and sellers meet to exchange dollars for coins.

There are scores of exchanges out there, but as a beginner, youll want to opt for one that balances ease of use with low fees and high security. If you dont already have an exchange in mind, check out our top picks for the best crypto exchanges.

You can buy BTC on several different crypto exchanges. Here are a few exchanges where you can exchange U.S. dollars for BTC:

Note the terminology of trading pairs, such as BTC to Tether (USDT) or USD Coin. In the case of BTC/USDC, bitcoins can be converted into Tether, a stablecoin whose value is pegged to the U.S. dollar. Here are a couple of exchanges that pair BTC to USDC:

After choosing an exchange, you have to fund your account before beginning to invest in Bitcoin. Check if your exchange has a Bitcoin wallet built into its platform. If not, youll need to find one of your own. Once your account is funded, you can place your first order to buy Bitcoin.

Depending on the platform youre using, you may be able to purchase it by tapping a button, or you may have to enter Bitcoins ticker symbol (BTC). Youll then have to input the amount you want to invest.

When the transaction is complete, you will typically own a portion of a Bitcoin. It requires a large upfront investment to buy a single Bitcoin now. If Bitcoins current price was around $30,000, for example, youd need to invest that much to buy 1 BTC. If you invested less, say $1,000, youd get a percentage of a Bitcoin that would equate to about 0.033 BTC.

How to Buy BTC With PayPal

You might be tempted to buy your Bitcoin on PayPal, but purchasing crypto this way means you cannot move your Bitcoin around easily. According to PayPals website: You can only hold the cryptocurrency that you buy on PayPal in your U.S. personal account. Additionally, the cryptocurrency in your account cannot be transferred to other accounts on or off PayPal. You will not be able to transfer crypto assets from your cryptocurrencies hub to another cryptocurrency wallet.

For that reason, you might consider another way to buy and store your Bitcoin.

Theres also another way to use PayPal to buy Bitcoin. For example, crypto exchanges like Coinbase and eToro will allow you to link to your PayPal account (as a payment processor) to purchase crypto. In this instance, PayPal is being used as a deposit method to fund your account.

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How to Buy Bitcoin With a Credit Card

Investors should consider that platforms may charge higher transaction fees for certain funding options. While you may purchase BTC with a credit card, we strenuously advise against it. Thats because credit card transaction fees on crypto exchanges often run high.

In addition, if you use a credit card to buy cryptocurrency, it generally will count as a cash advance and be subject to a higher interest rate than you pay on regular charges. Moreover, taking on debt to buy volatile investments is extremely risky.

Its generally advisable to pay for cryptocurrency purchases with cash, or with other crypto that you own.

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Store Your BTC

The crypto exchange you use probably has an integrated Bitcoin wallet or at least a preferred partner where you can safely hold your BTC. Some people, however, do not feel comfortable leaving their crypto connected to the interneta hot walletwhere hackers may more easily steal it.

Most major exchanges have private insurance to reimburse clients if this happens. BTC can be stored in several ways, whether with online or offline storage:

  • Hardware Wallets. A hardware device stores the private keys to your assets and allows you to interact with the wallet without exposing your data. Trezor and Ledger are examples of hardware wallets that support BTC.
  • Offline storage. Sometimes referred to as cold storage or a cold wallet, it is considered a safe way to store BTC because this type of storage isnt accessible via an internet connection. You can keep your crypto on paper using a paper walletthis will generate a public key and private key for your crypto.
  • Software Wallets. Desktop wallets, considered hot wallets, are programs downloaded to store your crypto asset. There are also mobile wallets that interface with managing crypto assets. Trust Wallet is an example of a mobile wallet where you can store BTC.
  • Crypto Exchanges. Many exchanges that trade BTC will let you store your crypto with their wallets. These crypto exchanges include Coinbase or eToro, to name a couple.

Should You Invest in Bitcoin?

When Bitcoins price goes to the moon, investing in the popular cryptocurrency can be tempting. But while it has the potential to be a lucrative investment, you should be cautious: Its an incredibly volatile purchase that experts dont recommend you allocate a large percentage to this risky asset class.

If youre not sure whether investing in Bitcoin or other cryptocurrencies is a good idea for your needs, consider meeting with a financial planner who can help you figure out where cryptocurrencies fit into your investment strategy.

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