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How to Invest in Cryptocurrencies for Beginners
Beginner
2025-06-24 | 5m
As mainstream media amplifies its spotlight on Bitcoin and digital assets, cryptocurrencies are gaining unprecedented public visibility. Yet many newcomers remain uncertain about initiating crypto investments, lacking clear entry pathways into this evolving market.
So today, we're going to walk you through a detailed introduction: how to invest in cryptocurrencies?
1. Verify Thoroughly, Allocate Wisely
As mainstream media increasingly feature coverage of Bitcoin and other cryptocurrencies, the cryptocurrency market is gradually becoming more visible to the public. However, some newcomers remain uncertain about how to invest in digital assets and are unsure of how to get started.
2. The Differences Between Stock and Cryptocurrency
Many individuals may already have experience with stock investment before entering the cryptocurrency market; what are the key differences between the two?
| Stock | Cryptocurrency | |
| Substance | Apart from being an investment product, it also gives actual ownership, that is, entitling you to be the owner of the company. | Investment products without actual ownership, but with certain cryptocurrencies, you can participate in projects based on the your holdings. |
| Trading Hours | Stock Market Time | 24 hours a day, 7 days a week |
| Investment Threshold | Minimum of 1 share.For example, Tesla's stock price is $700, so the minimum buy-in is $700. | Unlimited size. For example, Bitcoin is currently priced at $40,000, then you can buy 0.001, which is $40. |
| Transaction Fees | Comparatively higher, usually around 1%. | Comparatively lower, usually 0.1%. CoinCatch now offers a 40% discount off the transaction fee, which is the lowest transaction fee among the cryptocurrency exchanges. |
| Financial Statement | With | Without |
| Valuation Model | There are a variety of approaches, such as using the companies' expected earnings, etc. | The valuation relies on the chain data and information disclosed by the project party. |
| Dividends/Interests | Some stockholders have it. | Most cryptocurrency holders don't have it. |
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Select a Cryptocurrency Exchange
Beginners frequently begin their cryptocurrency journey by using exchanges. There are two primary types: centralized exchanges (CEX) and decentralized exchanges (DEX).
3. Get Started by Purchasing Bitcoin in the Spot Market
There are numerous cryptocurrency financial derivatives available on modern exchanges; however, for beginners, the recommended initial step is to acquire Bitcoin through the spot market. If your budget is limited, you are not required to purchase a full Bitcoin. Instead, you can invest in smaller amounts, such as $100 worth of Bitcoin. Additionally, CoinCatch offers various beginner-friendly services, including promotional bonuses, which can be explored in the Help Center.
4. Learn About Cryptocurrency Security
Take Bitcoin as an example. There is "public key", "address" and "private key". If the "public key" is the bank account, the "address" is like the card number of the bank account, and the "private key" is your personal password. In other words, there is not much difference between cryptocurrencies and traditional bank accounts. As long as you keep your "private key" safe and prevent it from being stolen, you can safely guard your cryptocurrency.
5. Learn About Common Cryptocurrencies
After completing your first bitcoin spot trade, you probably understand the process of investing in cryptocurrencies generally.Then, you can start learning more about the common coins and trending sectors in the cryptocurrency market.The No. 1 cryptocurrency by market cap is currently Bitcoin, while the second-largest is Ether.Bitcoin and Ether are more recognized in the market with their larger size and smaller price fluctuations (limited to the cryptocurrency market), so beginners should learn about Bitcoin and Ether first.More common cryptocurrencies and trending sectors will be introduced in CoinCatch Academy.
| Cryptocurrency | Technology | Orientation | Availability | Application | Official Website |
| Bitcoin (BTC) | Blockchain technology 1.0 can only be used for cryptocurrency payments, transfers, and other functions | Currency or inflation-resistant investment products | A total of 21 million coins | The Bitcoin network is like a globally accessible online bank where people can send or receive bitcoins | https://bitcoin.org/ |
| Ether (ETH) | Blockchain technology 2.0 is more practical by boosting smart contracts and applications, in addition to 1.0 functions. | Tokens: Coins for creating smart contracts and decentralized applications | Unlimited; Up to 18 million coins per year | Anyone can create a decentralized application or smart contracts on the system. Ether is required during the process. | https://ethereum.org/ |
6. A Beginner's Guide to Investing in Cryptocurrencies
All investment involves risks. However, the right investment strategies will generate good returns with minimal risks.
(1) Beginners should give priority to Bitcoin and Ether
For beginners investing in cryptocurrencies, Bitcoin and Ether should be given priority. The reason is that they have a larger market cap, more stable prices (cryptocurrency market only), and higher market recognition and usage.
(2) Instill the concept of value investment
Instead of holding cryptocurrencies in the short run, you should adopt a long-term perspective in investment.Short-term cryptocurrency holders are often subject to unnecessary losses. For example, if the price increases in a short time when you are involved, it happens to gain profits by selling on the market, thus bringing the price back down, and you may suffer losses and get knocked out.However, when you sell, the market buys in again, resulting in an increased price.As long as you have a long-term perspective of holding cryptocurrencies, you won't suffer from unnecessary losses by panic selling for temporary declines.
(3) Set up an automatic investment plan
The three basic elements of the automatic investment plan: find a relatively low point to start with and increase your assets over time. Be consistent, stay calm, and your wealth will grow with time.For example, you can invest $1,000 per month or divide the funds for the cryptocurrency market into three to five parts and buy them in batches. Since the prices of cryptocurrencies are volatile, an automatic investment plan can avoid buying at the highest point of short-term fluctuation, thus allowing you to buy at a relatively reasonable average price.
(4) Control your available funds
First, the invested funds shouldn't be your emergency funds or money that you will need to use within two years, so as to avoid being forced to sell your cryptocurrency at a low price to cash out. Second, the investment should only account for 5-10% of your total funds or another reasonable proportion, so you are not under too much pressure even if there's huge volatility.
CoinCatch Team
Disclaimer:
Digital asset prices carry high market risk and price volatility. You should carefully consider your investment experience, financial situation, investment objectives, and risk tolerance. CoinCatch is not responsible for any losses that may occur. This article should not be considered financial advice.
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