How to Get Into Crypto: A Complete Guide for Beginners
To get into crypto, all you need is an internet connection and a digital wallet.
While crypto was obscure in the 2010s, today there are many ways to gain exposure to the market. This diversification of options is definitely a positive, but beginners may find it overwhelming.
We’ve compiled this guide to help you understand the basic concepts of cryptocurrency and show the best ways to invest in it. In crypto, it’s never too late to take your first steps.
According to a Crypto.com report, 659 million people globally owned cryptocurrency at the end of 2024, representing 8% of the total population.
The most popular ways to interact with cryptocurrencies include:
- Investing: You can buy crypto through a specialized exchange by registering and depositing fiat with your credit/debit card.
- Staking: You can stake the native coins of proof-of-stake (PoS) chains like Ethereum, Solana, or BNB Chain to earn passive income.
- Yield farming: You can participate in decentralized finance (DeFi) – the blockchain-based financial ecosystem – by providing liquidity to earn interest and incentives.
Key Takeaways
- Cryptocurrency offers high-growth potential but comes with volatility and security risks that investors should be aware of.
- Beginners should learn how to safely store crypto, understand market trends, avoid scams, and diversify investments.
- Crypto is not just about Bitcoin; it is a diverse market that comprises stablecoins, utility tokens, NFTs, and RWAs, each with different functions and risk levels.
What is Cryptocurrency?
Cryptocurrency is a form of digital money that operates without any centralized authority, such as a government, bank, regulator, or other organization. Instead, its oversight and security rely on blockchain, a technology in which transactions are authorized by a network of participants through a collective effort that strictly follows the consensus algorithm.
This means cryptocurrencies are decentralized, secure, borderless, and censorship-resistant.
While cryptocurrency was envisioned as a form of digital currency, the market has expanded to include specialized assets, such as utility tokens, which are used within specific ecosystems. We’ll explore the main types of crypto assets below.
Bitcoin is the most popular cryptocurrency, but it’s also the most rigid one and limited in functionality, as it doesn’t support decentralized applications (dApps) and other tokens. These are possible with blockchains offering the smart contract feature, such as Ethereum, XRP, or Solana.
Nevertheless, before investing in any crypto, you should always check Bitcoin’s mood first, as it typically sets the tone for the whole market. If Bitcoin is bullish or bearish, the entire market tends to follow it.
As of June 2025, Bitcoin’s dominance is at over 60%, meaning that its $2+ trillion market cap accounts for nearly two-thirds of the entire industry.
Given their influence, large-cap crypto coins like Bitcoin and Ethereum typically make up the largest portion of a balanced crypto portfolio.
Cryptocurrency vs. Traditional Currency
Cryptocurrency and traditional currency differ in structure, control, and accessibility. Even though over 95% of fiat money is already circulating in a digital format, it is entirely different from cryptocurrency.
Fiat currencies like the U.S. dollar are issued and regulated by central banks and governments. On the other hand, crypto assets are decentralized and secured by blockchain.
Let’s quickly discuss the main differences between the two:
| Factor | Cryptocurrency | Traditional Currency |
| Stability | Low to Medium | Medium to High |
| Safety | Medium to High | Medium |
| Transaction cost and speed | Medium to High | Medium |
| Global usage and acceptance | Medium (Growing Adoption) | High (Legal Tender) |
Stability and Safety
The stability of fiat currencies depends on government backing and central bank monetary policies. Fiat money is considered legal tender and accepted everywhere within its jurisdiction or internationally, as with reserve currencies like the USD or the euro.
Cryptocurrencies, while more volatile and unstable in the short term, offer complete transparency and censorship resistance, making them safer in the long term.
However, not all fiat currencies and cryptocurrencies are the same. Some fiat currencies may be affected by economic crises, while certain crypto assets are backed by weak technology or have no real utility.
Speed and Cost of Transactions
Traditional transfers, especially wire transfers through SWIFT or other networks, can take days and incur high fees.
Cryptocurrencies like USDC or Solana can provide faster transactions at lower costs. Some blockchains enable near-instant settlement at infinitesimal costs.
Global Usage and Acceptance
Fiat currencies are accepted within their jurisdictions, while a few global currencies like the USD are recognized nearly everywhere and supported by traditional financial infrastructure.
Cryptocurrency, on the other hand, is inherently borderless and accessible to anyone with internet access, but it has lower acceptance and may face regulatory barriers in many jurisdictions.
Still, with the rise of stablecoins, the crypto industry may expand to more markets and real-world use cases.
As it stands, fiat currency can be mainly used for everyday transactions, while crypto is more suitable for investment.
Types of Cryptocurrencies
The crypto industry started with Bitcoin, the first use case of blockchain. Today, it’s a diverse market, with thousands of digital assets serving different purposes.
Before investing in crypto, it’s important to understand the main types of digital assets:
Cryptocurrencies (Coins)
While the term “cryptocurrency” is often used to describe most blockchain-based assets, it technically refers to the native coins that fuel their respective blockchain, e.g., Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and BNB Chain (BNB).
Crypto coins are used for mining or staking – depending on the consensus algorithm, paying for transaction fees, and sometimes participating in governance.
Utility Tokens
Aside from native cryptocurrencies, most other digital assets built on existing blockchains are referred to as tokens.
The most relevant example is utility tokens, which offer access to certain Web3 products or services. For instance, Chainlink (LINK) is used to pay for oracle services, while Filecoin (FIL) enables holders to purchase storage space on its native platform.
These tokens can increase in price as the related project gains adoption.
Stablecoins
While called stablecoins, these are tokens pegged to the value of traditional fiat money, such as the USD. They play an important role in crypto, being used for trading, payments, and DeFi interactions.
Investors prefer stablecoins for their flexibility, as they can easily exit bearish markets without having to rely on fiat.
Stablecoins account for over 8% of the entire crypto market, with USDT and USDC being the largest ones. As of June 2025, the stablecoin market cap surpassed $230 billion, setting a new All-Time High (ATH).
Governance Tokens
Governance tokens enable holders to vote on protocol changes, giving users a say in the project’s development and future.
Some utility tokens may serve as governance tokens as well.
Non-Fungible Tokens (NFTs)
NFTs are digital assets that represent something unique, such as art, collectibles, or in-game items. Unlike regular cryptocurrencies, they cannot be exchanged equally for one another.
NFT trading volume peaked in 2021-2022 and has never recovered since then, but investors can still find certain collections with growth potential.
Real-World Assets (RWAs)
RWAs are blockchain-based tokens representing traditional assets, such as commodities, real estate, or bonds. They can offer exposure to traditional markets directly on-chain.
According to RWA.xyz, the total RWA market cap is at a record $23 billion.
Meme Coins
Meme coins are coins or tokens with no real utility, being mainly driven by social media hype and internet culture. Popular examples include Dogecoin, Shiba Inu, Pepe, and Bonk.
For investors, these can be high-risk, high-reward opportunities.
A balanced crypto portfolio includes a few major cryptocurrencies, such as BTC, ETH, and SOL, along with a mix of utility tokens, governance tokens, meme coins, and NFTs, depending on which subsectors you want to predominate, e.g., DeFi, AI, Decentralized Physical Infrastructure Networks (DePINs), gaming, Layer 2s, oracles, etc.
How Trading Cryptocurrencies Works and Why Invest
Unlike traditional assets controlled by centralized entities, cryptocurrencies reside on blockchains. This means there is no single authority that can manipulate their supply, freeze crypto assets, or restrict their usage in certain jurisdictions.
When it comes to cryptocurrency trading, two main ecosystems facilitate it: centralized exchanges (CEXs) and decentralized platforms like decentralized exchanges (DEXs) in the DeFi space.
How Do Cryptocurrency Markets Work?
Thanks to their design, cryptocurrencies are available around the clock, with markets being open 24/7. For comparison, stock markets operate during business hours on weekdays.
As mentioned, trading is facilitated by two types of platforms:
- CEXs like Binance and Coinbase.
- DEXs like Uniswap and Raydium.
CEXs work similarly to traditional brokers, while DEXs operate based on encoded rules and don’t rely on any centralized authority.
For beginners, CEXs may be more suitable, as they allow you to buy crypto with fiat, are more regulated, and can be accessed with an email address, storing crypto on your behalf. The downsides are that they require KYC verification and provide the least secure form of crypto storage, being the target of many hacking attacks.
On the other hand, DEXs offer full control over your crypto funds. You can access them with a non-custodial crypto wallet that can interact directly with them.
If CEXs rely on market makers to bring liquidity and support price discovery, DEXs offer on-chain pools against which traders can trade their tokens. Liquidity providers depositing in these pools are incentivized from trading fees.
Since no authority sets or influences crypto prices, they are determined by supply and demand dynamics on CEXs and DEXs.
With lower adoption and trading volumes than traditional markets, cryptocurrencies can be extremely volatile.
What Factors Influence Crypto Prices?
Crypto price swings can be caused by multiple factors:
- Institutional interest: Big trends are dictated by institutions or whales, a nickname for large investors. They are targeting large-cap coins like BTC, driving the general market trends.
- Macroeconomic news: Government crypto regulations or major changes in monetary policies can affect prices by making crypto less or more attractive.
- Social media hype: Many crypto assets, especially meme coins, owe their prices to social media buzz.
- Exchange listings: The prices of new tokens can be driven by their listings on exchanges.
- Tokenomics: The design of cryptocurrency, such as supply caps, token distribution, burning mechanisms, and incentives, has a major impact on the price.
- Hacking attacks and exploits: Any negative news, such as hacks, rug pulls, or smart contract exploits, can cause prices to drop significantly or even crash. Such was the case with LUNA and FTX’s FTT token.
Why Do People Invest in Cryptocurrency?
Cryptocurrency is a relatively new market, and its rapid development is associated with many investment opportunities. It can be compared to the internet boom in the 90s.
Many beginners are searching for how to get into crypto trading, and there are several reasons why people invest in crypto:
High Growth Potential
Early investors in large-cap crypto coins like BTC or ETH saw astronomical returns, prompting many to seek high growth potential in newer tokens and emerging trends, like AI or DePIN.
Presales are especially attractive, being treated as high-risk, high-reward opportunities.
Portfolio Diversification
Many traditional investors allocate a portion of their portfolios to crypto as it shows low correlation to traditional assets. Bitcoin is known for acting as an inflation hedge and a safe haven against geopolitical tensions.
Decentralization & Financial Freedom
Some people are interested in the practical use of crypto rather than in its upside potential. Crypto appeals to those who don’t trust the government and banks.
Speculation and Hype
Many retail investors and traders are driven by the fear of missing out (FOMO), speculating on the price of crypto assets.
Meme coins are the most popular candidates for speculation, attracting those looking for quick gains.
Cryptocurrency is one of the most important innovations in finance and tech, but, like any nascent industry, it is not without challenges.
Here are the main pros and cons of cryptocurrency:
- Decentralization and Freedom: Crypto assets operate without government or bank control, being more democratic and inclusive.
- Transparency and Security: Thanks to blockchain, digital currencies offer an unprecedented level of transparency and unmatched security.
- 24/7 Availability: Unlike traditional financial markets, crypto trading is open around the clock.
- Global Accessibility: Cryptocurrencies are borderless and accessible to anyone with an internet connection.
- Efficiency: Crypto transfers are usually more rapid and cheaper than traditional fiat transfers.
- High Growth Potential: Many cryptocurrencies delivered impressive returns, and the market still offers many opportunities.
- Price Volatility: Cryptocurrencies are highly volatile, including large-cap coins like BTC or ETH. This makes them risky for short-term investing.
- Regulatory Uncertainty: Crypto regulations vary by jurisdiction and can often be vague, creating difficulties for developers and investors.
- Fragmentation: The crypto industry is very fragmented, with multiple isolated blockchains and ecosystems that barely communicate with each other. For example, there is no direct cross-chain movement of value between Bitcoin, Ethereum, or Solana. Bridges are a solution, but they are easy targets for hackers.
- Scams and Security Risks: The crypto market has experienced many scams and hacking attacks, especially as many users are still new to the space.
How Safe is Trading Cryptocurrency?
Despite the strong security offered by blockchain, crypto trading is often riskier than trading stocks, commodities, or other traditional assets. However, its vulnerabilities are not at the blockchain level, with scammers and hackers targeting the ecosystems built on top of these chains, including crypto exchanges, bridges, DeFi platforms, wallets, etc.
To make their crypto journey safer, beginners should select a reputable crypto exchange and stick to the basic security practices, such as enabling two-factor authentication (2FA) and storing large amounts in a secure wallet.
Even if they manage to avoid scams, active trading poses inherent risks, as cryptocurrencies are extremely volatile, with price swings often defying technical analysis logic.
Nevertheless, the upside potential attracts investors despite all the risks involved.
Ways to Invest in Cryptocurrency: A Breakdown of Your Options
There are several ways to gain exposure to crypto, such as buying it through an exchange, participating in presales or initial exchange offerings (IEOs), staking, or buying crypto exchange-traded funds (ETFs) and stocks.
Beginners usually start by purchasing major coins and stablecoins on CEXs, while experienced traditional investors may choose ETFs and crypto stocks to gain exposure without interacting with a blockchain.
Here is a table with different ways to get started:
| Investment option | Overview | Pros | Cons |
| Buy crypto through CEXs | Buy cryptocurrency by registering with a CEX like Binance or Coinbase | High liquidity
Convenience |
Less secure
KYC verification |
| Participate in presales, IEOs, IDOs | Invest early in new crypto projects before public listings | Upside potential
Discount token prices |
High risk of scams and failed projects
Low liquidity |
| Buy crypto ETFs | Invest in funds that directly hold crypto assets | Regulated crypto exposure
No need for a crypto wallet |
Annual fees
Mostly available in the US only |
| Buy crypto stocks | nvest in public companies with crypto exposure, such as Coinbase or MicroStrategy | No need for a crypto wallet
Regulated market |
No direct crypto exposure
Tied to company performance |
| Stake crypto | Lock crypto coins of PoS networks to earn rewards | Passive income
Participate in network operations |
Lockup periods
Slashing risks |
| Mine crypto | Use hardware to validate transactions and earn coins | Passive income potential
Direct participation in network operations |
Hardware can be expensive
High energy costs Profits are not guaranteed |
| Yield farming | Use DeFi platforms to earn returns through liquidity provision or lending | Potential for high returns
No central authority |
Complexity
Impermanent loss Smart contract risks |
| NFTs, GameFi | Buy or earn in-game assets and NFTs | Engaging
Upside potential |
Illiquid
Prices based on hype |
Before starting your crypto journey, make sure you understand each approach and its pros and cons. Also, it’s recommended that you never invest more than you can afford to lose.
Things to Consider Before Starting Your Crypto Journey
Cryptocurrencies offer great opportunities and can even become a lifestyle, but there is a lot to learn before you feel confident in this ecosystem, especially since it evolves so quickly.
Before investing or trading, you should be aware of the risks, tools, and responsibilities that come with joining the crypto trend. Here are some key areas you should pay attention to.
Market Understanding and Crypto Performance
The crypto market operates differently from traditional finance, with prices being more volatile and influenced by market sentiment. For successful trading, you should constantly monitor new technology developments, project updates, regulatory changes, and major events that could impact the crypto market or specific projects.
As a beginner, it’s important to understand both bull and bear market conditions.
As mentioned earlier, Bitcoin defines the main crypto market trends. However, there are periods when altcoins – crypto assets other than Bitcoin – rally independently. When 75% of the top 50 altcoins by market cap outperform Bitcoin for 90 days, we call it an altcoin season. Today, the Altcoin Season Index stands at 22, a low figure indicating that Bitcoin is dominant.
Storing Your Cryptocurrency
Before buying crypto, you should learn to store it safely. Cryptocurrencies are stored in crypto wallets, which essentially have two components:
- The public key, used to create wallet addresses that can be shared with anyone. Public keys cryptographically derive from private keys.
- The private key, which works like a password. It gives full control over the funds and should be stored securely.
When planning to purchase crypto, you can choose from two main types of crypto wallets:
- Hot wallets connect to the internet, offering a more intuitive way to manage crypto for everyday use.
- Cold wallets, such as hardware devices offered by Ledger or Trezor, store the private keys offline, being mainly used for long-term storage of larger amounts.
Most crypto investors deal with hot wallets, which can be either custodial or non-custodial. Custodial wallets are managed by crypto exchanges like Binance and Coinbase, meaning the platform holds your private keys. They are the most convenient option, but also the least secure.
Non-custodial wallets give you full control over your crypto funds, as they store the private keys on your computer. Also, these wallets generate a seed phrase during the initial setup, which is used to recover crypto in case the password is lost.
Scams and Safety
As with any new expanding market or technology, the crypto space is plagued with crypto scams, hacking attacks, and many other threats. What’s worse, crypto transactions are irreversible, and blockchains don’t have customer support like traditional banks.
In 2024, high-yield investment scams and pig butchering – a scam where the bad actor initiates a romantic relationship or friendship via social media to gain the victim’s trust – accounted for over 80% of all the crypto lost to scams.
You should learn how to protect your investment by avoiding phishing scams and holding crypto in secure wallets.
Cryptocurrency Legal and Tax Issues
Crypto regulation and taxation vary widely by country. In some jurisdictions, crypto is fully accepted even as a legal tender and taxed as an asset, while in others, it is restricted or even banned.
Make sure you understand the crypto regulations in your region and check your country’s tax authority for guidance on reporting crypto gains or losses.
Common Crypto Myths
Beginners encounter many crypto narratives that are nothing more than myths. To avoid misconceptions about crypto, it’s important to separate facts from fiction by continually learning how crypto actually works.
Here is a concise table of common myths and the realities behind them.
| Factor | Cryptocurrency |
| Crypto is a scam | While scams exist in the crypto space, legitimate cryptocurrencies like BTC and ETH are built on transparent, decentralized technology. |
| Crypto has no real value | Many cryptocurrencies offer real utility, but even without utility, crypto assets like BTC have value thanks to their scarcity. Value is an abstract concept. The same thing can be said about gold or even fiat money. |
| Crypto is not regulated | Crypto regulation is increasing globally, and many countries implement legal frameworks for crypto assets, exchanges, and investors. |
| There’s no way to store crypto safely | Crypto can be stored securely in non-custodial wallets and cold wallets. |
| Crypto is bad for the environment | Bitcoin is energy-intensive, but most other blockchains, including Ethereum, use eco-friendly proof-of-stake systems. |
| Investing in crypto is gambling | While risky, crypto investing can be based on research and monitoring market trends — unlike gambling, which is purely chance-based. |
| Cryptocurrency is the currency of criminals | Illicit activity represents a small fraction of crypto use, which is true about fiat money as well. Also, blockchain transparency often makes it easier to trace than cash. |
Conclusion
Starting your crypto journey may seem intimidating at first, with so many platforms, coins, blockchain ecosystems, apps, and jargons. However, if you understand basic concepts and learn the first steps from this guide, everything becomes much easier.
All you need is an internet connection, a secure wallet, and a good understanding of what you’re investing in.
Cryptocurrency started with Bitcoin but has evolved far beyond it. Today, the market includes stablecoins, NFTs, utility tokens, and emerging sectors like AI and real-world assets (RWAs).
You can set up a wallet for crypto exposure to diversify your portfolio, explore yield opportunities in decentralized finance (DeFi), or just understand the technology impacting the financial world. Digital assets are transparent, secure, efficient, and borderless, contributing to a more democratic and inclusive economy.
Nevertheless, as with any investment, crypto comes with risks, including high volatility, scams, and regulatory uncertainty. But it also offers freedom, accessibility, and upside potential.
👉Want Want to dive deeper? Go to the CryptoNews Academy for more beginner-friendly resources and guides.
Frequently Asked Questions
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References
- BTC Dominance Chart (CoinMarketCap)
- Stablecoin Market Cap Chart (Token Terminal)
- RWA Market Cap Chart (RWA xyz)
- Altcoin Season Index Chart (Blockchain Center)
- Crypto Scams by Revenue (Chainalysis)
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Eliman Dambell 
