Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
What I Wish I Knew Before Buying My First Bitcoin
Ruby Layram
26th Aug 2025
Bitcoin is currently one of the most talked-about assets in the investing world. It’s the crypto that’s turned some very early adopters (who held onto their BTC) into millionaires. But of course, some people have lost everything and the shirt on their backs from poorly-timed crypto investments. Latecomers to Bitcoin have evolved into very nervous refreshers of their portfolio apps. But Bitcoin is, even at this late stage, still being talked about.
I remember the first time I bought Bitcoin. I was curious about the whole crypto thing and also kind of smug that I was getting in on this new and exciting trend! However, I didn’t prepare myself for some of the rollercoasters that were to come!
If you’re thinking of dipping your toes in, here’s what I wish someone had told me before I clicked “Buy.”
Also read: How to Set Up a Recurring Bitcoin Investment
The Price Will Swing Constantly!
I was not mentally prepared for the daily (and sometimes hourly) price swings that come with owning crypto!
While most assets move just a fraction during the day (unless there is a major event), the price of Bitcoin and other cryptos can take huge leaps and fall within the space of just a few hours.
When I first bought Bitcoin, I made the grave mistake of staring at my portfolio throughout the day. Which was an anxiety attack waiting to happen!
If you want to buy crypto, you need to get comfortable with the idea that the value of your portfolio will constantly move up and down. The best move for me is to set it and forget it (so I don’t go crazy watching it all day!).
Fees Can Be High!
You’ve probably heard us warn about the hidden fees that come with investing before. But with crypto it is particularly important to watch out for these!
I was not prepared for the cost of moving my crypto between platforms, selling my crypto for cash and swapping it for other coins. Everything comes with a cost, and these fluctuate constantly depending on network activity and liquidity (so you never know exactly how much it will cost you).
My tip here is to minimise moving your crypto around as much as possible. That means choosing a good crypto exchange from the start and having a clear plan in place.
There’s More to It Than Just “Buy and Wait”
When you buy Bitcoin, you need to decide how you’ll store it, because unlike your bank account, there’s no “forgot my password” button for lost crypto.
Your options:
- Leave it on the exchange (easiest, but higher hacking risk).
- Move it to a hot wallet (connected to the internet, good for quick access).
- Cold storage (offline, safest, but less convenient).
I left mine on an exchange for months before learning what “private keys” were.
If you do decide to leave it on an exchange, opt for an FCA-registered option. At Money Magpie, we think CoinJar provides excellent customer support and a user-friendly interface.
The Tax Man Cares…
In the UK, selling Bitcoin for a profit triggers Capital Gains Tax, even if you convert it into another crypto, not pounds.
I learned this the hard way when I swapped some BTC for Ethereum and thought I was off the hook. Turns out, HMRC still wanted their share.
Keep a record of every buy, sell, and swap. Tools like Koinly or CoinTracker can save you hours of headaches.
You Don’t Need to Buy a Whole Bitcoin
If you’re still sitting there, thinking that you need to buy an entire Bitcoin to invest, let me set things straight!
You do not need to buy an entire £80,000+ BTC to be an investor. In fact, exchanges such as CoinJar allow you to buy as little as £10.
So, pretty much anyone can be a Bitcoin investor!
| Standard Risk Statement |
| The above article is not to be read as investment, legal or tax advice and it takes no account of particular personal or market circumstances; all readers should seek independent investment advice before investing in cryptocurrencies. The article is provided for general information and educational purposes only, no responsibility or liability is accepted for any errors of fact or omission expressed therein. Past performance is not a reliable indicator of future results. |
| UK residents are required (in accordance with local legislation) to complete an appropriateness assessment to show they understand the risks associated with what crypto/investment they are about to buy and enabling CoinJar to categorize them as an investor. New customers are also required under local regulations to wait 24-hours as a “cooling off” period (from account creation), before their account is active (i.e. to deposit, trade, withdraw etc.). |
| Cryptocurrency is currently not regulated in the UK. It’s vital to understand that once your money is in the crypto ecosystem, there are no rules to protect it, unlike with regular investments. You should not expect to be protected if something goes wrong. So, if you make any crypto-related investments, you’re unlikely to have recourse to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) if something goes wrong. |
| Remember: |
| Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary. |
| If you use a credit card to buy cryptocurrency, you would be putting borrowed money at a risk of loss. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. |
| Note the standard risk warning from the CoinJar website. |
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