Crypto Investment Tutorial: Master the Basics and Learn Digital Asset Trading from Scratch

In recent years, the crypto market has grown rapidly, attracting traditional financial institutions and listed companies to enter the space. Well-known companies like Tesla have incorporated digital assets into their asset allocation, demonstrating market recognition. Many early participants in this field have achieved financial freedom; however, for novice investors, the most urgent questions are often: “How to get started with crypto investing?” “What methods can I use to profit in the market?”

This tutorial is specially organized for beginners, covering the core knowledge of crypto investing to help you quickly grasp basic concepts and take the first step into digital asset trading.

Level 1: Why invest in crypto?

Investment markets include stocks, bonds, forex, commodities, and more. So, what are the unique advantages of crypto investing?

Advantage 1: High growth potential

The crypto market has only a decade of history and is still an emerging field full of opportunities. Compared to traditional stock markets dominated by institutions, crypto markets have larger volatility, meaning more profit possibilities for retail investors.

Advantage 2: Low entry barrier

The minimum amount to buy crypto is usually between $2-$10, whereas buying stocks typically requires over $300, and forex starts at $1,000. This allows investors with limited funds to participate.

Advantage 3: 24/7 trading without regional restrictions

Stocks and bonds are closed on weekends, with limited trading hours; crypto, on the other hand, is traded 24 hours worldwide, allowing anyone to participate without regional limitations.

Level 2: Choosing the right trading method for you

Crypto investing mainly involves two methods: exchange trading and contract trading.

Exchange Trading

Divided into centralized exchanges (CEX) and decentralized exchanges (DEX). Centralized exchanges usually require real-name verification, suitable for investors wanting to hold spot or futures contracts; decentralized exchanges do not require identity verification but need wallet support.

Contract Trading

This involves trading via CFDs, where investors speculate only on price movements without holding actual assets. These platforms are usually regulated, offering higher fund security, and have more user-friendly interfaces.

Both methods have advantages. If you prioritize fund safety, regulated contract trading platforms are better; if you want to hold assets long-term, spot trading is more suitable.

Level 3: Essential checklist for safe entry

Before starting trading, be sure to confirm the following:

Platform Screening

• Confirm if the platform operates legally in your region
• Verify if deposit and withdrawal methods are available locally
• Prefer larger, well-known platforms
• Note: Cryptocurrency exchanges are still under evolving regulation; choose carefully

If choosing a regulated contract trading platform

• Confirm the platform holds internationally recognized licenses (e.g., ASIC, FCA, FSC, CIMA)
• Confirm funds are stored in segregated accounts separate from operational funds
• It’s recommended to verify licenses directly on regulatory authority websites to avoid fake licenses and scams

Basic trading process

1. Download the official app (preferably from the official website to avoid phishing sites)
2. Complete registration and identity verification (be cautious if no verification is required to deposit)
3. Choose deposit method and fund your account
4. Select trading instruments and set orders (beginners should start with the minimum units)

Level 4: Mainstream crypto to watch in 2025

For beginners, it’s usually best to start with high market cap coins, which are the current market leaders:

Bitcoin (BTC) - Market pioneer

Current Price: $87.50K | 24h Change: -0.39% | Circulating Market Cap: $1747.15B

As the pioneer of crypto, Bitcoin remains the market leader. Last year, it completed its fourth halving, cutting miner rewards in half. Historical data shows that each halving has been followed by a new rally. Large institutions’ interest in Bitcoin continues to grow, and spot ETF approvals further lower entry barriers. Blockchain upgrades and scalability solutions like Lightning Network improve transaction efficiency, opening more future applications for Bitcoin.

Ethereum (ETH) - Smart contract platform

Current Price: $2.94K | 24h Change: -0.32% | Circulating Market Cap: $355.10B

Ethereum’s core innovation is supporting smart contracts—self-executing programs on the blockchain. Developers can create complex decentralized applications, accelerating innovation. Unlike Bitcoin, Ethereum has no supply cap, leaving more room for future development. As the ecosystem expands, market demand is expected to rise.

Dogecoin (DOGE) - Community-driven

Current Price: $0.13 | 24h Change: -1.02%

Dogecoin has a loyal global community of supporters, which helps it resist market downturns. More merchants accepting DOGE for payments are increasing, both online and offline, gradually gaining practical value and market recognition.

XRP (Ripple) - ETF candidate

Current Price: $1.87 | 24h Change: -0.95%

Following the approval of mainstream crypto ETFs, XRP is seen as the next promising ETF candidate. Industry consensus suggests that once XRP ETF is approved, it will attract significant capital inflows, pushing the price upward.

Sui (SUI) - Emerging public chain

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

Sui is a next-generation high-performance public chain, rapidly gaining attention with its unique architecture and Move programming language. Its ecosystem is expanding quickly, with projects in decentralized trading, lending, NFT markets, gaming, and social apps. Many analysts are optimistic about its growth potential, expecting the price to break upward.

Level 5: Top five common mistakes for beginners

Everyone makes mistakes in investing; the key is not to fall into the same trap repeatedly.

Mistake 1: Frequent trading

After mastering basic technical analysis, many beginners start to buy and sell frequently based on market movements, trying to go long or short. This not only incurs high fees but also impairs judgment. Even if the direction is correct, they often miss out on profits because they close positions too early.

Mistake 2: Lack of respect for the market

No one can predict the market 100%. When wrong, many choose to fight the market, resulting in liquidation. During major downturns, investors aware of the risks still try to catch rebounds, often losing everything.

Mistake 3: Not setting stop-loss and take-profit

Beginners tend to want to make more profit and recover losses. Not setting stop-loss or take-profit exposes the entire position to risk. During historical crashes, even seemingly safe leverage can lead to instant liquidation.

Importance of take-profit and stop-loss

Risk management tools are essential in risky investments. Stop-loss and take-profit help keep risks within manageable limits. When the market gaps, these functions execute close positions at the nearest favorable price, protecting your principal as much as possible.

Mistake 4: Lack of trading discipline

Trading requires following a predetermined plan. Do not change your strategy based on short-term fluctuations. The market is always there; patience is key.

Mistake 5: Over-leverage

Leverage is a double-edged sword. High leverage amplifies gains but also magnifies losses. Beginners should start with low or no leverage, gaining experience before considering higher leverage ratios.

Summary: Start your crypto investment journey

The core of crypto investing education boils down to these five levels: understanding market opportunities, choosing trading methods, ensuring fund safety, recognizing mainstream coins, and avoiding common pitfalls.

Making mistakes as a beginner is not scary; repeating the same mistakes is. Each error is a learning opportunity. Adjust your strategies timely, accumulate experience gradually, and you can survive long-term in the crypto market.

Remember: Making mistakes is not scary; repeating mistakes is!

FAQ

Q: Are crypto and virtual currency the same?

Not exactly. Virtual currency circulates online as digital tokens but may not use encryption technology. Crypto is a type of virtual currency generated using cryptographic techniques to ensure transaction security and privacy. In simple terms: crypto is a subset of virtual currencies, but not all virtual currencies are crypto.

Q: How much capital should a beginner start with?

Start with an amount you can afford to lose. Crypto entry is low; $2-$10 can get you involved. It’s recommended for beginners to experience the market with small amounts first, then gradually increase as they become familiar with trading processes and risk management.

Q: Should I buy spot or futures?

If you are optimistic about holding assets long-term, choose spot; if you want to profit from short-term volatility, choose futures. Both have their features; neither is inherently better. The key is to select the method that suits you best.