Cryptocurrency Investment Tutorial in Five Steps: A Beginner's Practical Guide

In recent years, the size of the Crypto market has expanded rapidly, attracting the attention of traditional financial institutions and publicly listed companies. Well-known companies like Tesla have incorporated Crypto assets into their investment portfolios, and early participants have gained substantial returns. But for beginners just entering this field, the most urgent questions are nothing more than: “How should I start investing in Crypto?” “How can I profit in a volatile market?”

This article will organize the core points of Crypto investment tutorials to help you cross the first hurdle of entering this market.

First Step: Understanding the Advantages of Crypto Investment

Among many investment categories, why is Crypto worth paying attention to? The core advantages are threefold:

Advantage One: Potential Returns Are Relatively High

Unlike mature markets like stocks and forex, the Crypto market has only a decade of history and is still in development. Emerging markets mean there are many undeveloped opportunities, and high volatility also brings greater profit potential. In contrast, traditional financial markets are dominated by institutions, making it very difficult for retail investors to break through.

Advantage Two: Entry Barriers Are Quite Low

The amount to purchase Crypto can be as low as $2 to $10. Compared to traditional stocks (usually requiring over $300) or the forex market (over $1,000), the capital threshold for Crypto is much more accessible, making it very suitable for small-scale investors to test the waters.

Advantage Three: Trading Is Not Limited by Time and Space

Traditional products like stocks and bonds are often restricted by region and trading hours, whereas Crypto is traded 24/7 globally. Anyone can participate in buying and selling at any time, regardless of location, without waiting for market open.

Second Step: Choosing the Right Trading Method

Newcomers should first decide which trading method to adopt. Based on trading scenarios, there are mainly two types: Spot and Contract Trading and CFD Trading.

Spot and Contract Trading

These transactions are conducted on Crypto platforms, divided into centralized and decentralized platforms.

Centralized platforms usually require real-name verification (KYC), but offer good liquidity and convenient operation. Decentralized platforms do not require identity verification but require users to have their own wallets.

Spot trading is suitable for investors who want to hold long-term, while contract trading is suitable for short-term traders. Leverage can reach 0 to 100 times, offering high flexibility but also higher risk.

CFD Trading

These platforms are under strict regulation by international financial authorities, making fund security relatively more assured. Users do not need to hold Crypto wallets, and the operation process is simplified; all trading steps can be completed online.

The advantage of CFDs is that you can trade multiple assets (stocks, forex, indices, gold, etc.) with a single account, suitable for those wanting to diversify investments. Especially for investors concerned about fund safety, regulated platforms of this type are worth prioritizing.

Third Step: Building a Foundation for Safe Trading

Before entering the market, be sure to confirm the following points:

Platform Legitimacy Check

• Confirm whether the platform operates legally in your country
• Verify if the platform’s deposit and withdrawal methods support local currencies
• Prefer larger, well-known platforms

Important Tips Currently, the regulatory system for Crypto exchanges is not fully mature. When choosing a platform, be extra cautious. If selecting a CFD platform regulated internationally, ensure it holds licenses from ASIC, FCA, FSC, CIMA, or other recognized authorities.

Recently, cases of scam platforms forging licenses have emerged. It is safest to verify directly on the regulatory authority’s official website.

Basic Trading Process

Regardless of the trading method chosen, the basic steps are generally the same:

1. Download the platform app or use the web version — it’s recommended to access directly through official channels to avoid phishing sites
2. Register an account and complete identity verification — if the platform allows deposits without verification, be cautious
3. Deposit funds into your account — confirm which currencies and deposit methods are supported
4. Select target coins and place orders — beginners are advised to start with the smallest trading units to test the waters

Fourth Step: Focus on Mainstream Coins Worth Watching

For beginners, starting with high market cap mainstream coins is relatively less risky. Here are some projects currently worth paying attention to:

BTC (Bitcoin)

As the pioneer of Crypto, Bitcoin has a stable market position. In 2024, it completed its fourth halving, reducing miner rewards from 6.25 BTC directly to 3.125 BTC. Historically, after each halving, Bitcoin enters a new bullish cycle.

With spot ETF approval, institutional investors’ entry barriers have significantly lowered. Layer 2 solutions like Lightning Network and Rollup technology are improving transaction efficiency and alleviating network congestion, opening new possibilities for Bitcoin’s application scenarios.

Current Data: $87.50K, 24h change -0.35%, Market Cap $1.75 Trillion

ETH (Ethereum)

Ethereum is an open-source blockchain platform with the unique feature of supporting “smart contracts”—automatically executing programs written on the blockchain. When conditions are met, contracts operate automatically, allowing developers to easily build complex applications in a decentralized environment.

Unlike Bitcoin, Ethereum has no fixed supply cap, providing flexibility for future development. As its ecosystem becomes richer, market demand and long-term value may rise accordingly.

Current Data: $2.94K, 24h change -0.35%, Market Cap $355 Billion

DOGE (Dogecoin)

Dogecoin experienced about a 20% price correction in early 2025. Interestingly, many large holders did not sell but added to their positions at the low point. The reasons are twofold: first, Dogecoin has a solid community base with many loyal holders worldwide, which maintains high popularity and makes Dogecoin relatively resilient during market fluctuations; second, more merchants are accepting Dogecoin as payment, both online and offline, expanding practical use cases and market recognition.

Current Data: $0.13, 24h change -1.02%, Market Cap $21.65 Billion

XRP (Ripple)

After the US SEC approved Bitcoin and Ethereum ETFs, XRP has become the next most anticipated ETF candidate. Industry experts widely believe that once XRP ETF approval is granted, a large influx of funds will push the price higher.

Current Data: $1.87, 24h change -0.90%, Market Cap $113 Billion

SUI (Emerging Public Chain Token)

Sui is a high-performance Layer 1 blockchain that has attracted recent attention in the Crypto space, utilizing a unique object model and Move programming language, with outstanding technical strength. Over the past year, its ecosystem has grown rapidly, with a market cap of $5.31 billion and total locked value exceeding $1 billion, attracting global investors.

The ecosystem now includes decentralized exchanges, lending platforms, NFT markets, GameFi, and social applications, with increasing completeness. Some analysts believe that if the token price stabilizes, SUI could break through $5.5, sparking a new wave of market activity.

Current Data: $1.42, 24h change -1.31%, Market Cap $5.31 Billion

Fifth Step: Avoid Common Mistakes Made by Beginners

Mistakes in trading are inevitable, but the key is not to fall into the same trap repeatedly. Here are some pitfalls most beginners encounter:

Trap One: Overtrading

After mastering basic operations, many beginners are easily attracted by market movements, frequently buying and selling, or holding multiple long and short positions across various coins. This not only consumes high transaction fees but also impairs judgment. Even if the direction is correct, premature closing can prevent profits.

Trap Two: Ignoring Market Risks

No one can predict the market with 100% accuracy, but many insist on fighting against the market when their judgment is wrong, unwilling to admit defeat, ultimately leading to liquidation. During major crises in history, many investors sensed the risks but still tried to catch the rebound, resulting in losses beyond expectations.

Trap Three: Not Setting Stop-Loss and Take-Profit

This is the most common fatal mistake. Wanting to earn more when profitable, or trying to recover losses when losing, without setting stop-loss or take-profit orders, exposes positions to unlimited risk. When the market gaps, even with stop orders, execution may occur at worse prices.

The Importance of Stop-Loss and Take-Profit

Stop-loss and take-profit are fundamental risk management tools. Even if risks cannot be completely eliminated, these tools can keep them within manageable ranges. When the market gaps, they will automatically close at the most favorable prices, greatly reducing the impact of sudden losses.

Most current trading platforms offer this feature, usually in the order placement interface. Beginners should develop the habit of setting stop-loss and take-profit orders with every trade to avoid serious consequences caused by oversight.

Summary

It’s inevitable for beginners to make mistakes in investing; this is part of the learning process. The important thing is to recognize this and adjust quickly after errors. When feeling tired or losing judgment, stop trading, and take time to relax through exercise or other activities, so you can calmly face mistakes and find solutions.

Finally, a word for all Crypto investment beginners: Making mistakes is not scary; what’s scary is repeatedly making the same mistakes over and over.

FAQ: What is the difference between Virtual Currency and Crypto?

They are not exactly the same.

Virtual Currency refers to digital tokens circulating online, used for transactions, but not necessarily secured by encryption technology.

Crypto (Cryptocurrency) is a special type of Virtual Currency generated using encryption technology to ensure transaction security and anonymity.

In short, Crypto is a subset of Virtual Currency, but not all Virtual Currencies are Crypto.