How much does it cost to buy 1 bitcoin today?

Have you ever wondered how much is a bitcoin worth? The price of Bitcoin mainly depends on when you buy it. Bitcoin prices are changing almost every second. According to the data of each exchange, the price of Bitcoin today is $ 16,671.6. The value of Bitcoin is determined by many different features. Frankly speaking, this may confuse ordinary Internet users. This article will explore issues related to the price of Bitcoin.

Costs related to buying and selling Bitcoin

Be sure to remember that buying Bitcoin and other cryptocurrencies requires payment. Each exchange is different, and some exchanges may charge more costs than other exchanges. Nevertheless, it is important to understand the main expenses related to buying and selling Bitcoin.

transaction fee

Bitcoin's blockchain network can maintain hundreds of thousands of transactions per day. However, as more and more people conduct Bitcoin transactions, the system becomes more and more crowded.

Therefore, you must handle your transaction payment in time. In early 2021, Bitcoin trading costs reached a record high of $ 59 per transaction.

Exchange fee

Most cryptocurrency exchanges charge you every time you buy and sell Bitcoin. Some exchanges may charge a uniform rate, and other exchanges will charge you a certain percentage of transaction fees. Sometimes, the percentage is 0.05%of your total purchase or sales.

Wallet fees

Every time you extract funds from the bank account and deposit it into a digital wallet, some exchanges will charge you, and vice versa. In some cases, you may even limit the amount you can withdraw at a given time. cointoview.com

tax

Although cryptocurrencies are quite new innovations, the old rules are still applicable. If you generate income through the day transactions of Bitcoin or other cryptocurrencies, you will have to pay a full amount of tax on your income, that is, capital gains tax. Remember, if you buy and sell assets within the same year, the capital gains tax will be higher, and if you hold bitcoin for a long time, the tax will be much lower.

What factors affect the price of Bitcoin?

As a decentralized digital commodity, the price of Bitcoin is mainly determined by the purchase of multiple exchanges and the sum of the sum of selling orders. momenticoin.com

Bitcoin is constantly traded on many different exchanges. The price was discovered by the trading settlement price by the trading settlement price. It can be said that the "market" determines the price of Bitcoin.

Of course, many external factors may affect the price that people are willing to pay for Bitcoin.

1. Emotion

For any assets, the overall market emotions will affect the current and future price trends. This often occurs.

What happens often is that as more and more people are more and more optimistic about something, the price will continue to rise until everyone thinks it will never fall again. Then at some time, things changed, and emotions began to change in the other direction. Once most people think that the price will never rise, it usually indicates that the price is close to the bottom.

This is why CNN has something called "fear and greedy index". The index uses seven indicators to measure the emotions of the entire financial market. The indicators measured by these indicators include stock volatility, the ratio of options, and the number of stocks that create new highs and the number of new lows.

2. Mining

Bitcoin mining also affects the price of Bitcoin. Miners are a powerful computer for network transactions, and they are the source of newly cast Bitcoin.

As miners created and accumulated new coins, what they tend to do as a whole will have a great impact on market prices. Miners must sell some Bitcoin to pay electricity bills and maintenance costs. But they choose how to deal with the remaining tokens will affect the price.

For example, when the expected Bitcoin's future price is higher than the present, they can choose to hold most Bitcoin to reduce the overall supply of the exchange. This will create support for price.

On the other hand, if the miners believe that the price of Bitcoin will fall, or they need cash for some reason today, they can sell their coins, increase supply and may lower the price.

How much does it cost to buy 1 bitcoin today?