Five core steps of cryptocurrency education: Master the secrets of crypto investment even with zero foundation

Why Is Now a Good Time to Enter Cryptocurrency?

In recent years, cryptocurrency has long ceased to be a niche topic. From tech giants to traditional financial institutions, and even publicly listed companies, everyone is starting to allocate digital assets in hopes of capitalizing on market fluctuations. Early participants in the space have become billionaires, and these stories of wealth creation inspire newcomers to join every day.

But here’s the question—“I am a complete beginner, how can I safely enter this market?” “How can I have a chance to make money?” These concerns are quite normal. Don’t worry, this article is here to help solve your confusion.

Cryptocurrency Teaching Lesson 1: Why Choose Cryptocurrency Investment?

Among the many investment options—stocks, bonds, forex, commodities, real estate, virtual currencies—why is cryptocurrency worth trying? There are three main advantages.

Advantage 1: Potential Returns Much Higher Than Traditional Markets

Cryptocurrency has only been around for a little over ten years and remains a relatively young market. Because of this, new opportunities keep emerging, and volatility is extremely high. In contrast, mature markets like stocks and forex are dominated by large institutions, making retail investors lucky if they aren’t “harvested” by the system—let alone making profits. In an emerging market, beginners actually have a chance.

Advantage 2: Very Low Entry Barriers

Buying cryptocurrency? You can start with just $2 to $10, which is unimaginable in traditional markets. Taiwan stocks generally require at least $300, and forex often needs over $1,000. This means even with limited capital, you can participate in this market.

Advantage 3: 24/7, No Geographic Restrictions

Stocks close trading hours, forex markets pause, but cryptocurrency is different. Anyone worldwide can buy and sell at any time, with no regional restrictions or closing hours. As long as you have internet, you can trade 24 hours a day—completely free.

Cryptocurrency Teaching Lesson 2: Which Trading Method Is Best for You?

Want to start trading cryptocurrencies? The first decision is choosing your trading method. Depending on the scenario, there are roughly two main types.

Method 1: Spot and Contract Trading on Exchanges

Exchanges are divided into centralized and decentralized types. Centralized exchanges are usually large crypto platforms requiring real-name verification(KYC), offering spot and various contract products; decentralized exchanges do not require identity verification but require you to manage your own crypto wallets.

The advantage of centralized exchanges is high liquidity and easy operation, suitable for long-term investors who want to hold actual digital assets. Decentralized exchanges better meet privacy needs but are slightly more complex for beginners.

Method 2: CFD Trading(CFD)

CFD trading features no need to hold actual assets; you are essentially speculating on price movements. These platforms are usually under strict financial regulation, making fund safety relatively more secure. You can trade stocks, forex, indices, gold, and more with a single account, very convenient.

For investors who prioritize fund security, CFD platforms are a good choice because their regulatory systems are more robust than crypto exchanges.

Compared to trading for quick profits, both methods are viable; but if you care more about fund safety, it’s recommended to prioritize regulated CFD platforms.

Cryptocurrency Teaching Lesson 3: Pre-Trade Safety Checklist

Before investing real money, make sure to check these items:

Checklist

1. Confirm whether the platform operates legally in your region
2. Verify if deposit and withdrawal methods support your available channels
3. Prefer well-known, high-volume, mature platforms
4. If it’s a CFD platform, confirm whether it holds internationally recognized licenses(such as ASIC, FCA, etc.)
5. Ensure user funds are stored in separate accounts, isolated from platform operational funds
6. ⚠️ Most importantly: if the platform allows you to deposit without identity verification, be extremely cautious!

Standard Trading Process

Step 1: Download the official app or use the web version. Access directly from the official website to avoid phishing scams.

Step 2: Register an account and complete identity verification. Prepare documents like ID card or passport, as this is a necessary step.

Step 3: Deposit funds through the platform. Note that some exchanges do not support non-USD local currencies; confirm this in advance.

Step 4: Choose cryptocurrency and place orders. Beginners are advised to start with the smallest trading units to get familiar.

Cryptocurrency Teaching Lesson 4: Cryptocurrencies Worth Watching in 2025 for Beginners

The safest way for beginners to get started is to begin with major, well-established coins by market cap.

1. Bitcoin(BTC) — Current Price $87.43K

As the pioneer of cryptocurrency, Bitcoin remains the market’s barometer in 2025. The fourth halving last year reduced the mining reward from 6.25 BTC to 3.125 BTC. History shows that after each halving, Bitcoin tends to initiate a new upward cycle.

Currently, institutional interest in Bitcoin continues to grow, especially after spot ETF approval, lowering the entry barrier for retail investors significantly. Plus, ongoing upgrades to blockchain technology—such as Lightning Network and second-layer scaling solutions, Rollup technology—speed up transactions and reduce network congestion. These improvements not only enhance user experience but also open up infinite possibilities for Bitcoin’s future applications.

2. Ethereum(ETH) — Current Price $2.94K

Ethereum’s unique feature is the ‘smart contract’ capability. Simply put, it’s an automated program written on the blockchain—when conditions are met, the contract executes automatically, without relying on intermediaries. This accelerates innovation in decentralized applications and fundamentally changes how many industries operate.

Unlike Bitcoin, Ethereum has no supply cap, leaving room for ecosystem development. As the ecosystem becomes richer, demand for Ethereum will only continue to grow.

3. Dogecoin(DOGE) — Current Price $0.13

In early 2025, Dogecoin experienced about a 20% price correction, but major holders did not flee; instead, they increased their holdings. Why? First, because Dogecoin has a rooted community—globally loyal fans who not only boost its popularity but also help Dogecoin resist declines during market volatility. Second, its use cases are increasing—more online and offline merchants are accepting Dogecoin payments, gradually recognizing its practical value.

4. Ripple(XRP) — Current Price $1.87

After Bitcoin and Ethereum spot ETF approvals, industry experts generally predict XRP will be the next ETF candidate. Once XRP ETF is approved, it will likely attract a large influx of capital, pushing up its price.

5. Sui(SUI) — Current Price $1.42

Sui is one of the recent hot topics in crypto. This new blockchain was developed by top-tier teams, leveraging a unique object model and Move programming language, quickly gaining recognition. Over the past year, Sui’s ecosystem has exploded, with a market cap surpassing $5.29 billion and over $1 billion in total locked value. From decentralized exchanges, lending protocols, to NFT markets, GameFi, and social apps, the ecosystem continues to expand. Analysts generally believe that if the price stabilizes, Sui could break through $5.50, sparking a new wave of growth.

Cryptocurrency Teaching Lesson 5: The Top Five Pitfalls for Beginners

No one is born a trading expert; everyone starts as a novice. Mistakes are inevitable, but the real problem is repeating the same mistakes. Here are the most common pitfalls for beginners.

Pitfall 1: Overtrading

Many beginners, after mastering basic operations and some technical analysis, start watching the charts constantly—buying and selling at every turn, going long one moment and short the next. The result? Most profits are eaten up by fees, and frequent trading severely impairs judgment. Even if your directional judgment is correct, you might miss out on gains by selling too early.

Pitfall 2: Disrespecting the Market

No one can predict the market 100%. Mistakes happen. But many make a fatal error: fighting the market, refusing to admit defeat, insisting on holding on. This attitude often leads to liquidation. The Luna incident in 2022 is a vivid example—many sensed the risk but stubbornly bought the dip, only to see the price fall far beyond expectations, leaving no way out.

Pitfall 3: Not Setting Take Profit and Stop Loss

When making profits, you want more; when losing, you want to recover—this is the psychology of every new investor. The result? Never setting stop-loss or take-profit orders, leaving positions exposed to risk.

Why are these tools so important? Because all investments carry risk, and while risk cannot be eliminated, it can be reduced through proper risk management tools. Especially during market gaps, stop-loss and take-profit functions can automatically close positions at optimal prices, preventing losses from escalating.

Pitfall 4: Being Driven by Market Sentiment

Buying because others buy; selling because others sell. This herd mentality causes many to buy at highs and sell at lows, inevitably losing money.

Pitfall 5: Ignoring Capital Management

Putting all funds into one coin or using excessive leverage are common mistakes for beginners. Good capital management means diversifying risk and setting reasonable position sizes.

Correct Your Mistakes to Start Profiting

Mistakes are inevitable for beginners; the key is to stop and reflect promptly. After each mistake, pause trading, take a step back, analyze the problem calmly, and find solutions. Only then can you grow continuously.

A final message for you: Mistakes are not scary; what’s scary is making the same mistake over and over.

Frequently Asked Questions: Is There a Difference Between Virtual Currency and Cryptocurrency?

‘Virtual currency’ refers to digital tokens circulating online that can be used for transactions but may not employ encryption technology.

‘Cryptocurrency’ is a special type of virtual currency produced using encryption techniques, specifically to ensure transaction security and anonymity.

Simply put, cryptocurrency is a subset of virtual currency, but not all virtual currencies are cryptocurrencies.