A good comparison to explain buying a percentage of Bitcoin is using stocks. Several stock brokerages allow users to buy a fractional share of a stock. Some companies include Charles Schwab, M1, Robinhood, Stash, Betterment, Stash, Stockpile, and Public.
For instance, if a person wanted to own Amazon which is $3,295. A person could buy $50 and own a fractional share of Amazon.
The same true for buying Bitcoin. Depending on the exchange, you could buy for $10. Then you would own a percentage of Bitcoin.
If you use dollar-cost average and continue to buy on a weekly or monthly basis, you could have enough to own one full Bitcoin. For instance, you would buy $100 of Bitcoin every week using dollar-cost average.
Some weeks the price of Bitcoin will be high and other weeks the price will be lower. When you average the price of Bitcoin you get the average cost based on the price you purchased Bitcoin each week.
Week 1 $30,000
Week 2 $32,000
Week 3 $29,000
Week 4 $28,000
The total amount of the Bitcoin over four weeks is $119,000. When you divide that by four you get $29,750. This was the average cost of Bitcoin that you purchased over the four weeks.
Instead of buying your Bitcoin all at once, you used dollar cost average to buy this cryptocurrency.
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