Recently, many beginners are interested in entering the crypto space and ask me how to start investing in cryptocurrencies. So I’ve organized and shared my experience over the past few years with everyone.

Honestly, this market has indeed created many wealth stories. Early entrants have now become big players, but for newcomers just getting started, the most important thing isn’t chasing overnight riches, but understanding the basic logic and managing risks.

Why invest in cryptocurrencies? Mainly because this market is still relatively young, volatile, and full of opportunities. Compared to traditional markets like stocks and forex, which are dominated by institutions, retail investors still have room to participate in crypto. Plus, the barrier to entry is really low—starting with just $2 to $10, unlike stocks which often require hundreds of dollars to begin. Most importantly, trading is 24/7, with no closing hours, allowing global buying and selling at any time.

The first step to entering the crypto space is choosing a trading method. There are mainly two types: exchange trading and contract trading. Exchange trading involves buying actual coins, which can be done on centralized exchanges (requiring real-name verification) or decentralized exchanges (requiring a wallet). Contract trading is speculation on price movements without holding the actual asset, usually under stricter financial regulations, making funds relatively safer. For beginners who prioritize capital security, it’s recommended to consider regulated contract trading platforms first.

After choosing a platform, the second key point is security. Be sure to verify the platform’s legitimacy, check if it operates legally in your location, and confirm whether deposit and withdrawal methods are supported. If you choose a regulated platform, look for internationally recognized licenses such as those from ASIC, FCA, FSC, etc. The safest way is to verify directly on the regulatory authority’s official website—don’t be fooled by fake licenses.

The trading process is actually very simple: download the app or use the web version → register and complete identity verification → deposit funds → select coins and place orders. Beginners are advised to start with the smallest units to test the waters.

For newcomers to the crypto space, choosing which coins to buy is very important. I recommend starting with assets that have high market capitalization, strong liquidity, and high consensus. Bitcoin is the leader, known as “digital gold,” and is the first choice for the most capital and institutional entry—like buying blue-chip stocks, it’s the least likely to cause losses. Ethereum is the top smart contract platform, with applications already widely implemented—from DeFi to NFTs and recently RWA (Real World Assets)—all tangible projects you can see and use. USDT is a stablecoin, which can be used as a “tool coin” to store funds when switching between different cryptocurrencies. Solana, over the past few years, has attracted many Wall Street institutions due to its fast transaction speeds and ultra-low fees, making it a good “satellite asset” to understand high-speed blockchains.

I’ve made many mistakes in this market, the most common being frequent trading. After mastering some technical analysis, I kept watching the charts all the time, buying and selling frequently, which resulted in paying huge fees and missing out on major moves. Another big pitfall is not respecting the market. No one can predict perfectly 100%, but many insist on fighting the market, ending up liquidated. I personally suffered from this during the March 12, 2020 crash, when I opened a long BTC futures position with 2x leverage, thinking it was safe, but a sudden drop wiped me out instantly.

The most crucial thing is to set stop-loss and take-profit orders. Many beginners don’t set them at all, exposing their positions to risk. Now I always set a stop-loss as soon as I enter a trade—so even if I’m wrong, the loss is manageable. Especially during gap openings, the stop-loss feature can help you close positions at the most favorable prices.

Finally, beware of two major traps. The first is pump-and-dump coins—projects with no technology or value, packaged as “metaverse” or “Web3.0” concepts, hyped up to the sky. Once you invest, they start dumping, and the price crashes. The second is Ponzi schemes—claiming to be blockchain projects but actually using new investors’ money to pay earlier investors. They might give small profits initially to boost confidence, but once you invest large amounts, they’ll say system maintenance prevents withdrawals, then run away with your funds.

Remember these two principles: don’t trust promises of high returns—any claim of “guaranteed doubling” or “thousandfold coins” is 100% a scam; avoid unregulated platforms and choose large exchanges or those with proper regulation. The most important thing for crypto beginners isn’t quick riches, but surviving long enough. Making mistakes isn’t scary; repeating the same mistakes is.