How Does a Beginner Start in Cryptocurrency?
Feb 13, 2025Getting started in crypto can be overwhelming. To keep things simple, start by educating yourself on crypto risk and security. Also be sure to explore our comprehensive guide on cryptocurrency for beginners. Meanwhile, here are some basics and answers to a few burning questions about how much and where to invest as a beginner.
How much should I invest in crypto as a beginner?
If you’re wondering how to invest in cryptocurrency for beginners, it’s essential to start with a clear plan.
- Start small - It’s wise to begin with an amount you can afford to lose. Consider investing 1% or less of your total portfolio or cash resources in crypto. This way, you can dip your toes in without diving headfirst into the deep end. Explore more on how much to invest in crypto if you're beginner.
- Choose a reputable exchange - Look for exchanges that are beginner-friendly and have strong security measures in place. This is where you’ll buy your cryptocurrencies, so it’s essential to pick a trustworthy platform. Some good examples include:
- Coinbase
- Kraken
- Binance & Binance.US
- Bitget
- Bybit
- OKX
- Kucoin
- Gate.io
- Crypto.com
The above list comprises centralized exchanges which are a great place to start because users don’t have to master seed phrase backup and security right away. Using decentralized exchanges is an advanced step.
- Get some experience - Most people will tell you to set up a wallet like MetaMask to store your funds off the exchange. This is an important step for getting crypto savvy; however, the most important thing is to play small until you understand best security practices. If you follow this rule and make a mistake, it will be a learning experience rather than a devastating one.
To ensure you’re making informed decisions, consider how to safely invest in cryptocurrency. It all starts with researching different cryptocurrencies, choosing reputable exchanges, and setting up secure wallets to protect your investments. Starting with well-known options like Bitcoin or Ethereum can provide a more stable entry point into the world of digital assets.
Key Takeaway
Crypto education is the key to success. Remember the use, learn, and repeat mantra. You can try to figure out all those steps on your own or follow our Crypto Intelligence System so you learn everything the right way.
Related: How to Buy Bitcoin: A Beginner’s Guide
What’s a good amount to invest in crypto?
When you're trying to decide how much to invest in crypto per month, think about your financial situation and comfort level with risk. A good starting point could be around $50 to $100 monthly. This approach allows you to gradually build your investment without feeling overwhelmed while also allowing for the possibility of mistakes. If $500 to $1,000 is like pocket change for you, you may wish to start there. The key is investing an amount that wouldn’t bother you if you never see it again.
Kick off your crypto education with four free crypto starter courses.
What’s the best crypto to invest in as a beginner?
For those wondering what the best crypto for beginners is, Bitcoin (BTC) and Ethereum (ETH) are often recommended. They are well-established, widely accepted, and generally considered safer bets for newcomers. Both of them comprise about 70% of the total market cap of all cryptocurrencies. Starting here can provide a solid foundation as you learn more about the market.
Can I start crypto with $10?
Absolutely! Many exchanges allow you to start investing with as little as $5 or $10. This means you can begin your journey into cryptocurrency without needing a massive upfront investment.
Key Takeaway
A classic investment tip is “time in the market is more important than timing the market.” You can never make up for lost investment experience which is separate from the size of your investment. Get in the game and start learning.
Best way to invest in cryptocurrency
The best way to invest in cryptocurrency combines research and strategy:
- Dollar-cost averaging (DCA) - This technique involves investing a fixed amount regularly, regardless of market conditions, which helps mitigate the impact of volatility. Just set up a recurring buy for $10 per week or month, for example. Most exchanges support this.
- Diversification - Don’t put all your eggs in one basket. Spread your investments across different cryptocurrencies to reduce risk while getting experience in watching how they react differently in the market.
Investing in cryptocurrency can be an exciting way to grow your wealth, but it’s essential to approach it with caution and knowledge. Getting a basic crypto education is critical to long-term success.
