Everything You Need to Know About Buying Bitcoin: Expert Insights

Bitcoin rocked the world ever since it came into the picture in 2009. Fast forward to 2023, and it’s still one of the hottest topics. 

However, last year’s crypto winter severely affected its value, causing it to drop below $16,000, just a year after it reached an all-time high of $69,000. 

All of this raises the big question — is Bitcoin a worthy investment?

Even though the world’s largest cryptocurrency is struggling to preserve its high value, its adoption is just rising with time.

Naturally, people have started seeing it as a potential investment, but before taking a huge leap, one has to take a few things into consideration before buying Bitcoin.

This article will provide you with insight, to help you make a smart decision.

Let’s delve into it!


What affects the value of Bitcoin?

Many cryptocurrencies don’t have a central authority, which means they’re not controlled by a single entity. This is true for Bitcoin. 

To some extent, it’s a good thing but is also what makes the price so volatile. 

Since Bitcoin is not subject to government monetary policy, various factors affect its price:

  • Supply and demand. Both supply and demand are influenced by the price of the asset. Basically, an increase in price causes demand for that asset to decrease, which is why more of it will be produced and vice versa. A great example of this is the Bitcoin halving that usually occurs every four years.
  • Production cost. This includes electricity charges for mining. The competition regarding the mining process makes it more difficult for miners. As a result, they need more powerful equipment, which means higher electricity costs and at the same time, a rise in value. 
  • Competition in the cryptocurrency market. Once the price of Bitcoin skyrocketed to $20,000, various cryptocurrencies were launched to compete with it. There are currently more than 20,000 cryptocurrencies in existence, which means investors have alternative coins to choose from. If Bitcoin was the only coin in the world, it would’ve been a totally different scenario. 

            However, Richard Branson once said: ‘’There may be other currencies like it that may   

            be even better. But in the meantime, there’s a big industry around Bitcoin.’’

  • Social media news. Since the hype around Bitcoin is huge, it receives a lot of social media coverage. However, this doesn’t always work in its favor. Yes, good news can cause its price to rise, but bad news has a negative impact and can result in a price decrease. 
  • Regulations. Crypto regulations can be beneficial but have disadvantages as well. They’re constantly changing and we can never know for sure how these changes are going to affect Bitcoin’s value. When China banned Bitcoin mining in September 2021, it led to a significant drop in value. 


5 Things to know before investing in Bitcoin

Bitcoin investments have proven to be extremely profitable, but can also be risky. It’s suitable for both experienced investors and beginners, however, not doing proper research can cost you a lot. 

After careful examination, we’ve come up with five things you need to consider before you jump into the crypto world.

  1. Bitcoin’s price history is extremely volatile

This probably doesn’t come as a surprise. Volatility is what makes Bitcoin unpredictable. Throughout the years, Bitcoin has hardly managed to maintain a price for a longer period. 

At the beginning of 2013 Bitcoin was worth $13 and by April grew to $230. Such price fluctuations happened again during the COVID-19 pandemic in 2020, when the price reached a staggering amount of $28,949, while previously ending 2019 at $7,216. 

Due to its volatility, you can’t fully rely on Bitcoin’s price predictions. That’s exactly why Bitcoin investments aren’t recommended for those with low-risk tolerance.

  1. No need to buy a whole Bitcoin

This is probably the biggest misunderstanding when it comes to buying Bitcoin. Have you heard someone say they can’t afford to buy Bitcoin because $20,000 is too expensive?

Here’s what people don’t know. You can buy a half Bitcoin or even smaller fractions. Of course, the amount you can earn depends on how much you’ve invested.

However, this often causes confusion, which is why people think that cryptocurrency investments cost a fortune.  

  1. Don’t forget taxes

Depending on the country you’re in, it’s more than possible you’ll have to pay taxes. Keep in mind, Bitcoin is taxable when you earn it as an income or sell it for profits. 

Before buying Bitcoin, make sure to inform yourself about tax regulations in your country. Avoiding taxes is considered to be a serious crime in some countries, so don’t take it as a joke.


  1. Bitcoin is not regulated

Due to Bitcoin’s decentralization, the government is unable to regulate the monetary policy. Sure, you can easily buy it and earn a satisfying amount, but at the same time, it’s possible to lose.

Remember, if you own Bitcoin, the best choice you can make is to store it in a wallet, otherwise, you can easily become subject to fraud. 

Let’s take the FTX collapse as an example. It was one of the largest crypto exchanges in the world when out of nowhere filed for bankruptcy in November 2022, which led to consumers losing more than $8 billion overall. 

That’s why there’s always a need for security control. Authorities are already working on it, so 2023 might be the year we witness stronger crypto regulations. 

  1. Bitcoin transactions aren’t anonymous 

Blockchain technology is all about transparency, so all transactions recorded on the blockchain are public. While this doesn’t mean your identity is traceable, your transaction history and balance are visible to everyone.

Governments also have the ability to link you to your wallet or transaction, which means it’s not that hard to identify the person behind that wallet. 

How to buy Bitcoin

Buying Bitcoin is not as complicated as one might think. In fact, it’s not that different from regular online shopping. What you need is a valid credit or debit card and available funds. For a better insight on how to buy Bitcoin, follow the instructions below.

  1. Find a crypto exchange

Exchanges are the most convenient when it comes to buying cryptocurrencies. It’s up to you whether you’ll keep your asset there or store it in a wallet. There are a lot of exchanges and some of them might have a wallet, if not you’ll have to find one on your own.

  1. Choose a payment option and connect it with the exchange

You’ll have to go through the process of registration first, which shouldn’t take more than five minutes. Once you choose your payment option and credit it with funds, you can connect your payment option with the exchange. There’s the option to connect it to a credit card or directly to your bank account. 

  1. Place the order

Choose the asset you wish to purchase, in this case, Bitcoin, and insert the amount at which you want to buy it. Don’t forget, you can buy it as a whole, but you can also buy fractions.

  1. Decide where you’ll keep the Bitcoin

If the purchase is successful, you’ll see your asset in your exchange account. Most people transfer it to a wallet afterward, because it offers them full control.

What is happening with Bitcoin’s price in 2023?

The significant decrease in Bitcoin’s value in 2022, has led experts to doubt its credibility. Predictions after the incidents weren’t optimistic, however, Bitcoin proved us wrong. It started the year off strong, jumping 43% in January. 

At the moment of writing Bitcoin stands at $23,925, with an increase of $0.57 in the last 24 hours. 

After such a hard hit, It seems like Bitcoin is recovering rather fast, but this doesn’t mean anything. Taking into account its volatile nature, things can go sideways overnight.

Despite many jumping to conclusions that 2023 may be Bitcoin’s downfall, analysts seem to agree that the coin is actually going to show significant growth in value until the end of the year. After all, we’re about to enter the bull market and Bitcoin’s 2024 halving is also approaching. 

Anthony Scaramucci, founder of SkyBridge Capital predicted 2023 to be a recovery year for Bitcoin and for it to trade at $50,000 to $100,000 in two to three years.

Is Bitcoin still a good investment in 2023?


Many are saying that the world’s largest cryptocurrency is outdated, but in reality, it’s just developing with time. 

We’re expecting stronger crypto regulations and even increased adoption, which means Bitcoin isn’t going anywhere in the near future.

When it comes to cryptocurrencies, you can never guess the right timing to invest. However, the bear market just ended and the prices are still low, so now might be a good time. After all, we can never truly know when the price is going to skyrocket.

To sum it up, Bitcoin is still a worthy investment and despite recent struggles, it’s definitely poised for recovery until the end of 2023!