Crypto Investment Beginner's Guide: Five Key Concepts to Start from Zero

Entering 2025, the cryptocurrency market has become an essential part of the global mainstream financial ecosystem. Companies like Tesla have long incorporated digital assets into their treasuries, and the earliest participants have become the new wealthy. However, for newcomers, the most core questions remain: “How to get started” and “Can I profit?” This article summarizes five key dimensions you must know before entering, helping you build a scientific understanding of investing.

Why participate in the cryptocurrency market?

Compared to traditional markets such as stocks, bonds, and forex, cryptocurrencies have three unique advantages:

Advantage 1: High profit potential

As a relatively new market just over ten years old, cryptocurrencies are far more volatile than traditional assets, which presents both risks and opportunities. Meanwhile, traditional financial markets are deeply controlled by institutions, making it very difficult for retail investors to break through.

Advantage 2: Low entry barrier

Buying cryptocurrencies requires only $2-10, far lower than the investment thresholds for stocks (usually starting at $300) and forex (starting at $1,000).

Advantage 3: 24/7 trading without geographical restrictions

Not affected by weekend closures, anyone worldwide can participate 24 hours a day, breaking the time and space constraints of traditional financial markets.

Choosing trading methods: Recognize the two main mainstream paths

Newcomers first need to understand the trading channels for cryptocurrencies. Based on scenarios, there are mainly two:

Method 1: Exchange trading

Divided into centralized exchanges (requiring real-name verification, offering spot and contract trading) and decentralized exchanges (no identity verification needed, but require a wallet). The former has relatively better regulation, while the latter emphasizes privacy.

Method 2: CFD trading

Trade cryptocurrencies via CFD products offered by financial brokers, without holding actual assets. These platforms are under strict regulation, offering relatively high fund security, and support trading multiple assets (stocks, forex, indices, etc.), suitable for small-scale diversified investors.

For investors prioritizing fund safety, CFDs are a more stable choice due to the more complete financial regulatory mechanisms.

Four safety checklists for participation

Before starting trading, you must do the following:

Checklist 1: Platform compliance

Verify whether the platform operates legally in your region and check its regulatory licenses (such as ASIC, FCA, FSC, etc.). Note: Some scam platforms forge licenses; it is recommended to verify directly on the regulatory authority’s official website.

Checklist 2: Deposit and withdrawal channels

Ensure the platform supports local currency deposits and withdrawals to avoid difficulties in fund flow later.

Checklist 3: Fund segregation mechanism

Prefer platforms that store user funds in separate accounts, isolated from operational funds.

Checklist 4: Basic operation process

Regardless of the trading method chosen, the general process is: download app/use web version → complete identity verification → deposit funds → select the coin and place an order. It is recommended for beginners to start with the smallest trading units to test the waters.

Five cryptocurrencies to watch in 2025

Coin 1: Bitcoin(BTC) | Current price $87.30K | 24h change -0.46%

As the pioneer of cryptocurrencies, Bitcoin remains the top by market cap. In 2024, it completed its fourth halving, with miner rewards halved to 3.125 coins. Historical patterns show that after each halving, Bitcoin enters a new bullish cycle. Additionally, the approval of spot ETFs significantly lowers institutional entry barriers, and Layer 2 scaling solutions are improving network efficiency, creating new support for Bitcoin’s long-term value.

Coin 2: Ethereum(ETH) | Current price $2.93K | 24h change -0.92%

Ethereum’s core strength lies in its smart contract mechanism, enabling developers to easily create complex applications in a decentralized environment, accelerating industry innovation. Unlike Bitcoin’s fixed supply, Ethereum’s supply mechanism is more flexible, leaving room for future development. As the ecosystem applications continue to grow, demand and value are steadily increasing.

Coin 3: Dogecoin(DOGE) | Current price $0.13 | 24h change -1.59%

Dogecoin has the most active community worldwide, maintaining high popularity and demonstrating strong resilience during market downturns. More importantly, the number of merchants accepting Dogecoin payments is increasing, significantly expanding its practical application scenarios and enhancing its value recognition.

Coin 4: XRP | Current price $1.87 | 24h change -1.37%

With the regulatory environment gradually clarifying, XRP’s prospects for actual payment settlement applications make it a hot candidate for a potential ETF approval. Once approved, it is expected to attract a large influx of capital.

Coin 5: Sui(SUI) | Current price $1.41 | Circulating market cap $5.28B

Sui, as an emerging high-performance public chain, has achieved technological breakthroughs with its unique object model and Move language. Its ecosystem is growing rapidly, covering decentralized exchanges, lending, NFTs, GameFi, and more. Most analysts are optimistic about its upward potential, believing that if it can hold key support levels, it may challenge $5.5.

Three common traps for beginners

Trap 1: Frequent trading

After mastering basic skills, many fall into the trap of “watching the charts constantly and trading frequently.” Frequent trading not only erodes profits (due to transaction fees) but also impairs judgment. Even if the direction is correct, early closing positions can prevent you from enjoying the full market trend.

Trap 2: Disrespecting the market

No one can predict the market with 100% accuracy. When judgment errors occur, it’s better to admit defeat rather than fight the market. Many investors try to catch rebounds when they see risk signals, ultimately leading to liquidation. Respect for the market is a basic premise for active participation.

Trap 3: Ignoring stop-loss and take-profit

“Make more when you profit, recover when you lose” is a common psychological bias. Not setting stop-loss and take-profit levels exposes your positions to unlimited risk. Especially during gap openings, stop-loss and take-profit functions can limit losses within predictable ranges.

Stop-loss and take-profit are not only risk management tools but also the foundation of rational trading. Be sure to fill in these parameters when placing orders to avoid impulsive decisions that lead to regret.

Final advice

Mistakes are inevitable for beginners. The key is to learn from each mistake and avoid repeating the same pitfalls. When you realize your judgment was wrong, stop trading, step back, and find ways to respond. Only then can you truly improve.

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

Additional: The difference between cryptocurrency and virtual currency

Virtual currency is a general term for all digital tokens circulating on the internet, but not all virtual currencies use encryption technology. Cryptocurrency is a special type of virtual currency that uses encryption technology to ensure transaction security and privacy.

In simple terms: Cryptocurrency is a subset of virtual currency, but not all virtual currencies are cryptocurrencies.