Crypto Tutorial Five-Step Beginner's Guide: The Essential Money-Making Path for Newcomers

Over the past decade, the crypto market has evolved from the fringe to the mainstream, attracting the attention of traditional financial institutions, publicly listed companies, and ordinary investors. Well-known companies like Tesla have begun incorporating digital assets into their portfolios, and early participants have thus achieved wealth accumulation. For newcomers to this field, the most common questions are: “How should I start investing in crypto?” “How can I make money in this market?” This article will answer these questions one by one.

The First Step in Crypto Education: Why Invest in Digital Assets?

Compared to traditional investment assets like stocks, forex, and bonds, crypto as an emerging asset class offers unique advantages.

Advantage 1: High Growth Potential

The crypto market has developed for less than 20 years and is still in its early stages. Compared to mature financial markets dominated by institutions, this space is full of new opportunities. High market volatility also means broader profit margins, and retail investors are less likely to be “harvested” as in traditional markets.

Advantage 2: Accessible Entry Barriers

The minimum amount to purchase crypto is only $2-10, far lower than stocks (usually over $300) and forex (over $1,000). This allows small investors to participate.

Advantage 3: 24/7 Global Trading

Traditional assets are limited by trading hours and regions, whereas crypto supports 24-hour trading without regional restrictions. Anyone worldwide can buy and sell at any time, unaffected by market halts.

The Second Step in Crypto Education: Choosing the Right Trading Method

The key to entering crypto investment is finding a trading channel that suits you. Based on different trading scenarios, there are mainly two types.

Exchange Trading

Trading spot or derivatives through crypto exchanges. Exchanges are divided into:

• Centralized Exchanges (CEX): Require real-name verification, usually offering spot and contract products
• Decentralized Exchanges (DEX): No identity verification needed, but require a crypto wallet

Exchanges are suitable for investors who want to hold actual tokens or leverage trading.

CFD Trading

These platforms do not require holding actual crypto assets but speculate on price movements. CFD platforms are usually under strict financial regulation, making funds relatively safer. Investors can trade multiple assets (stocks, forex, indices, crypto, etc.) with a single account, and operations are simpler.

For those who prioritize fund safety, CFDs are a more secure choice.

The Third Step in Crypto Education: Essential Security Points

Before starting trading, be sure to verify the following:

Platform Legitimacy Check

• Confirm the platform operates legally in your region
• Verify that deposit and withdrawal methods supported are available
• Prefer well-known, large platforms

Regulatory License Verification (if choosing a CFD platform)

• Confirm the platform holds internationally recognized licenses (e.g., ASIC, FCA, FSC)
• Ensure user funds are stored in separate accounts, isolated from platform operational funds
• Check directly on the regulatory authority’s official website to avoid false licenses

Overview of Trading Process

Regardless of the trading method chosen, the basic process is similar:

1. Download the official app or use the web version (avoid phishing sites, access directly from the official website)
2. Register an account and complete identity verification
3. Deposit funds using supported currencies
4. Select crypto assets and set orders
5. Beginners are advised to start with the smallest trading units

The Fourth Step in Crypto Education: Analysis of Coins Worth Watching in 2025

Newcomers usually start with high market cap coins. Here are the current mainstream options:

Bitcoin (BTC)

• Current Price: $87.45K
• 24h Change: -0.42%
• Circulating Market Cap: $1746.15B

As the pioneer of crypto, Bitcoin remains the market leader in 2025. The recent halving reduced miner rewards from 6.25 BTC to 3.125 BTC, and historical experience shows that each halving triggers a new rally. Institutional interest in Bitcoin continues to grow, especially after spot ETF approvals lowered investment barriers. Upgrades like Lightning Network and Rollup technology are improving network efficiency, opening more possibilities for Bitcoin’s future applications.

Ethereum (ETH)

• Current Price: $2.95K
• 24h Change: +0.02%
• Circulating Market Cap: $355.66B

Ethereum’s unique feature is supporting smart contracts—programs that automatically execute on the blockchain. When conditions are met, contracts run automatically, enabling developers to create complex decentralized applications quickly. Unlike Bitcoin, Ethereum has no fixed supply cap, leaving room for future development. As the ecosystem’s applications grow richer, market demand is expected to continue increasing.

Dogecoin (DOGE)

• Current Price: $0.13
• 24h Change: -0.64%

In early 2025, Dogecoin experienced about a 20% correction, and large holders took the opportunity to buy more at lower prices. There are two reasons: first, Dogecoin has a loyal global community, which provides strong community resilience during market fluctuations; second, more merchants accept DOGE as payment, both online and offline, expanding real-world use cases and reinforcing its market value.

XRP (Ripple)

• Current Price: $1.87
• 24h Change: -0.84%

After Bitcoin and Ethereum ETF approvals, XRP has become a promising candidate for future ETFs. If XRP ETF approval goes smoothly, it is expected to attract significant capital inflows, driving the price upward.

Sui

• Current Price: $1.42
• Circulating Market Cap: $5.31B

Sui is a recently highly regarded new public chain project. With its unique object model and Move programming language, this high-performance Layer 1 blockchain has rapidly risen. Over the past year, Sui’s ecosystem has grown quickly, with Total Value Locked (TVL) surpassing $1 billion, and applications like DEX, lending, NFT, and GameFi emerging rapidly. Many analysts predict that if the price stabilizes, Sui could challenge the $5.5 mark, leading a new wave of market activity.

The Fifth Step in Crypto Education: Five Major Mistakes Beginners Must Avoid

Mistakes are inevitable in investing, but repeatedly falling into the same trap is not worth it.

Mistake 1: Overtrading

Many beginners, after mastering basic operations and technical analysis, start frequent trading—buying and selling often, even opening multiple long and short positions simultaneously. This not only incurs high fees but also impairs judgment. Even if the direction is correct, closing positions early can prevent profit.

Mistake 2: Ignoring Market Signals

No one can predict the market 100%. When judgments go against the market, many choose to fight the trend. This “stubbornness” often leads to liquidation. Historical events like the LUNA collapse show that trying to catch rebounds during perceived risk can lead to unpredictable losses.

Mistake 3: Ignoring Take Profit and Stop Loss

“Make more when profitable, recover losses when losing” is a common beginner mistake. This exposes positions to risk. Setting take profit and stop loss is fundamental for risk management, helping to keep risks within manageable limits. Especially during gap openings, these orders can automatically close at the most favorable prices, preventing further losses.

Importance of Setting Take Profit and Stop Loss

Placing stop-loss orders allows automatic closing when the price drops to a set level. Even if a gap occurs (price jumps past the target), the system will execute at the next best price, greatly reducing losses. Traders who do not set these often suffer larger-than-expected losses due to market volatility. Most trading platforms offer this feature; be sure to fill it carefully.

Mistake 4: Blind Following

Seeing others profit from a certain coin and blindly buying without understanding its fundamentals is risky—especially in a bull market’s late stage. It’s better to develop your own judgment standards rather than rely solely on others’ opinions.

Mistake 5: Ignoring Learning

Markets change, technology evolves. Investors who refuse to learn will eventually be eliminated. Spending time learning blockchain basics, technical analysis, and risk management is the foundation of long-term profitability.

Frequently Asked Questions About Crypto

Are crypto and virtual currency the same?

Not exactly. Virtual currency refers to digital tokens circulating online but not necessarily using encryption technology. Crypto is a type of virtual currency that uses cryptography to secure transactions and ensure anonymity. In simple terms, all crypto are virtual currencies, but not all virtual currencies are crypto.

Summary

Crypto investment is not a smooth journey, and it’s normal for beginners to stumble. The key is to adjust promptly after mistakes rather than repeat the same errors. Every mistake is a learning opportunity. When you make fewer mistakes than others, your time to profit truly begins.

Remember this: Making mistakes is not scary; repeating the same mistakes is.

With these five steps as a foundation, plus continuous learning and risk management awareness, you are already on the path to becoming a successful investor.