Recently, many beginners have been asking how to invest in cryptocurrencies, so I might as well organize my thoughts. To be honest, cryptocurrencies have been around for a long time; from electronic money to digital currencies, regulatory agencies around the world are gradually catching up, and the entire market is becoming more mature.

First, let's talk about what exactly cryptocurrencies are. Simply put, they are a new type of currency that does not rely on physical assets and is based on cryptographic technology for circulation on the internet. Currently, there are over 20k types of cryptocurrencies in circulation, with more than 300 million users worldwide, and daily trading volumes exceeding one trillion US dollars. Just 18k businesses accept cryptocurrency payments.

Cryptocurrencies are mainly divided into two categories. One is centralized, like PayPal or digital currencies issued by central banks of various countries. The other is decentralized, such as Bitcoin and Ethereum, which are the cryptocurrencies that investors truly focus on. Based on market capitalization, they can be divided into large-cap coins, mid-sized tokens, and small-cap tokens, each with different risks and potentials.

Regarding investment options, my advice is that beginners should definitely choose mainstream coins with large market caps. Avoid those altcoins ranked beyond 100, as they are too volatile and prone to losses. Also, steer clear of projects without whitepapers, anonymous teams, or hype-driven concepts—nine out of ten are just scams to fleece investors.

If you can only pick a few, I recommend these. Bitcoin (BTC) is the top choice, currently priced around $77.65k, with a market cap of $1.556 trillion. As the gold standard of cryptocurrencies, it has the lowest entry barrier, the strongest liquidity, institutional recognition, and has stood the test of time in terms of security. Ethereum (ETH) is also good, priced at $2.13k, with a market cap of $256.51 billion. Most DeFi and NFT projects are built on Ethereum, which has a strong ecosystem, and after upgrades, its scalability is even better. Ripple (XRP) has a clear use case, focusing on cross-border payments, currently at $1.36, with a market cap of $84.19 billion, but be aware of its legal risks—only suitable for small positions. Binance Coin (BNB) is at $667.80, with a market cap of $90.01 billion. It’s not just an investment asset but also usable within the exchange ecosystem, offering trading fee discounts, and has a buyback and burn mechanism for long-term support.

Stablecoins like USDT and USDC are also worth paying attention to, especially for beginners. USDT is now at $1.00, with a market cap of $189.63 billion; USDC is also at $1.00, with a market cap of $76.43 billion. These coins have zero volatility, making them suitable for practicing trading or emergency hedging.

As for how to buy, there are several ways. The most straightforward is through large exchanges—after completing identity verification, you can buy directly with TWD or USD. You can also use decentralized exchanges, but you need to manage risks yourself. If you don’t want to hold the coins, you can consider CFD contracts—just predict the price movement to profit. Platforms like Mitrade have low thresholds, as low as $50, and support TWD deposits and withdrawals. There are also Bitcoin and Ethereum spot ETFs, which can be purchased through a brokerage account, making it more friendly for traditional investors.

The advantages of cryptocurrencies are quite obvious. Their issuance rules are embedded in code, preventing over-issuance; every transaction requires consensus confirmation, ensuring security and transparency; they can circulate freely, with low transaction costs; cross-border transfers are fast and cheap. Central bank digital currencies (CBDCs) can even allow governments to directly pay citizens, simplifying the process.

But the drawbacks must also be recognized. Digital currencies are inherently deflationary because their total supply is fixed and will not increase with economic growth. Price volatility is extremely high, with no stable value benchmark, and any disturbance can trigger sharp rises or falls. Wallet security is another issue—if you forget your password, your assets are lost forever, which is a disaster for users.

Overall, cryptocurrencies are changing the global financial landscape. Countries are planning their own digital currencies, and market acceptance is increasing. In the future, digital currencies will surely attract more users, and technology will continue to innovate. If you want to get involved, choosing large-cap mainstream cryptocurrencies and practicing good risk management is the right approach.