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Ask CryptoVantage: Is it Easier to Buy Bitcoin or Tesla Stock?
Bitcoin and Tesla stock are very different types of assets, but they can be acquired in similar ways using an online exchange or brokerage.
Tesla stock is slightly more difficult to buy, because of the account registration process and the fact that you generally have to buy whole shares. In contrast, you can buy a tiny fraction of a bitcoin. If you want to take complete ownership of your asset, there are lots of options available for bitcoin, but you won’t be able to store your Tesla shares under your mattress!
Purchasing Process
When it comes to comparing the difficulty of buying bitcoin versus Tesla stock, the first thing to consider is the purchasing options available. Your options for buying Tesla stock are quite limited – you are pretty much forced to buy it through a stock brokerage. In order to use a brokerage, you will need to meet eligibility requirements and register an account.
By far, the most popular method of buying bitcoin is through online bitcoin exchanges. Using an online exchange is similar to using an online stock brokerage, and usually requires you to meet similar eligibility requirements. There are, however, many other ways to buy bitcoin, and some are easier than others. Because bitcoin can be transferred in a peer-to-peer manner – directly from one user to another without needing a brokerage to approve the transaction – you can buy bitcoin directly from any person who owns it.
One more thing to consider is that you must buy Tesla shares in full increments. This means you cannot buy a partial Tesla share – you have to buy at least one, which is currently worth $816 USD. In contrast, you can easily buy under $100 worth of bitcoin at any time. This is because each bitcoin can be subdivided into 100 million satoshis. Just like the dollar has cents, bitcoin has satoshis. There are starting to be some options available for buying fractional Tesla shares, but they are not available for everyone and aren’t guaranteed to stick around.
Level of Ownership
One important difference between Tesla stock and bitcoin is that bitcoin is a bearer asset, whereas Tesla stock is a custodial asset. This means that you have the option to fully own your bitcoin, and you can never fully own Tesla stock yourself.
Tesla shares must be bought through a brokerage. Many people do not realize that when they buy shares through a brokerage, they do not actually own the shares themselves – the brokerage owns them on their behalf. Comparing apples to apples, you can easily hold bitcoin on an exchange if you choose to. In this situation, you are trusting the exchange to hold your bitcoin for you, similar to how a brokerage would own your Tesla shares.
If you want to take full ownership of your bitcoin, there are a number of technical hurdles to overcome – for example, you will need to learn about wallets and security. For many people who purchase bitcoin, taking the time to learn about these technicalities is worthwhile. For example, the importance of owning your bitcoin or stock shares was highlighted in early 2021 when the GameStop stock was rapidly increasing in price. When this was happening, brokerages started interfering and blocking access to the stock. Many people were not allowed to buy any of the GameStop stock and some brokerages even went so far as to sell stocks at a loss without their customers’ permission. A situation like this could not happen with bitcoin, as long as you have complete ownership (i.e. you are not storing your bitcoin on an exchange).
While there are fewer regulatory and economic barriers to buying bitcoin than there are to buying Tesla shares, there are more technical barriers if you want to take the extra step to fully own your bitcoin. If you are willing to not have full ownership of your assets, then it can be easier to buy bitcoin on an exchange than it is to buy Tesla shares through a brokerage. All in all, it is worth taking the time to understand the implications of not fully owning your assets.
Conclusion
When comparing the difficulty of buying bitcoin versus Tesla stock, there are a few things to consider. The minimum purchase price for Tesla is currently over $800 USD, whereas you can easily buy less than $100 worth of bitcoin. Bitcoin also has an advantage over Tesla stock in that you can take complete ownership of your asset. Complete ownership does come with some technical challenges, so if it is currently too difficult for you, then have the option to store your bitcoin on an online exchange while you learn to use bitcoin safely.
