The Ultimate Guide to Investing in Cryptocurrency As A Beginner

However, cryptocurrency still exists. In fact, as of 2025, the cryptocurrency market is worth $3.05 trillion at the time of writing this article. That doesn’t seem like a waste of money, right? 

Like all other investments, cryptocurrency for investors is a great way to diversify their investment assets and invest in something a little different from stocks and shares, or bricks and mortar.

If you’re looking to invest your money in cryptocurrency as a beginner, then here are a few things worth knowing.

What is cryptocurrency?

As a newcomer, you might even be wondering what cryptocurrency is, or perhaps you’ve heard it numerous times before, but don’t actually have a definition or what it means as an investment type.

Cryptocurrency - shortened to crypto - is a form of digital payment. It’s unregulated, which means, unlike traditional currency, it’s not controlled by one central authority. This is what’s known as a decentralized currency.

People use cryptocurrency for online transactions, but in recent years, it’s actually been used to purchase physical assets. 

How does cryptocurrency work?

When it comes to all cryptocurrencies, they’re based on blockchain technology. That makes them very secure, but it’s important that, as an investor, you pick a reliable exchange platform to trade crypto.

With public ledgers, these transactions remain traceable and therefore cannot be counterfeited. There’s also no currency exchange fee, making it ideal for those wanting to transfer money from one country to the next.

These digital financial assets are publicly recorded, then stored digitally and transmitted via encryption. 

The benefits of cryptocurrency

There are many benefits to cryptocurrency that make this a useful investment asset to dive into. Whether you’re looking to invest in something different from what you’ve invested in before, or this is your first time investing in anything, here are a few benefits that come from investing in cryptocurrency.

It’s highly accessible

Being a digital investment, it’s an asset that’s highly accessible, and so anyone who is looking to take advantage of an investment can do so through cryptocurrency. 

While it might be challenging to understand as a beginner at first, it can soon become an effective form of investment once you get to grips with it. Plus, you can spend as little on the crypto investment as you want.

Inflation protection

Inflation protection is a major benefit of cryptocurrency. As it’s a digital currency, unlike other traditional currencies, there’s often a limited amount of coins for each cryptocurrency, protecting its users from the rising inflation of traditional currency options.

With inflation protection, it’s something that would benefit you greatly as an investor.

Security and privacy

With cryptocurrency it’s an investment type that empowers its users with control and accessibility. However, what it also does is help you face the hurdles that come with security risks and regulations. With blockchain tech like op block explorer, it’s helpful in making sure your investment into cryptocurrency is done so correctly.

Diversifies your portfolio

As mentioned, diversifying your portfolio is an important step to help stabilize your investments and ensure the assets you do have are effective in their ability to make you money. 

With cryptocurrency, while it does come with its own risks, it helps to keep your multiple investment pots balanced and helps to mitigate the risks that you’d otherwise face with fewer investment types.

How to get started with cryptocurrency

So, what do you need to get started with cryptocurrency in the first place? With any investment, you want to approach cryptocurrency with a proper understanding of what it is and how it is going to benefit you and your financial needs.

Every investment you dive into needs to be something that works for you. With that being said, here are some helpful tips on how to get started with cryptocurrency.

1. Do the research and deep dive into crypto

To get to grips with a new investment type like cryptocurrency, you’ll want to do your research as a beginner. That means a deep dive into everything crypto, from the type of coins available to the origins of how cryptocurrency came about.

The more understanding you have when it comes to cryptocurrency, the better the experience you’ll have when you ultimately come to invest in it. Be mindful of how much research you’ve done so far - if any - and make a note of what you need to know more about.

As you gain more knowledge, there will be more clarity on cryptocurrency and how to get the most out of this investment type.

2. Look for platforms to exchange

There are numerous platforms to explore when it comes to trading and exchanging crypto. Of course, it’s important to be super wary of what platforms are trustworthy and which platforms you might want to avoid when it comes to security and trust.

It’s therefore important to take a look at what platforms are rated highly amongst other crypto investors and which ones are particularly advantageous for the type of crypto you’re looking to invest in.

Some will have more options than others, some with a variety of features that you might benefit from having. It’s therefore worth looking into these platforms in more detail to pick out the right one for you.

3. Create and fund your account

Next up, you’ll want to create your account and fund it with some cash, ready so that you can buy crypto.

Creating an account is relatively easy, just expect to have your ID available in order to verify who you are and that you’re of legal age to buy and trade crypto. It’s worth mentioning that sometimes, you’ll need to wait for verification of your account when adding your ID.

Some platforms are a little more long-winded when it comes to creating an account than others are. It’s therefore worthwhile looking at just one or two platforms so that you’re not spreading your attention and efforts too thin when investing in crypto as a beginner.

4. Buy crypto

Buying crypto is something to be mindful of when doing so for the first time. While there are lots of options available to choose from, you’ll want to make sure that you’ve done your research into what crypto is worth buying and what might not be the best purchase at this point in time.

That’s not to say that some crypto coins might not be worthwhile at a later date. What has been found with crypto coins is the sudden change that can happen overnight or sometimes in the space of seconds, where one crypto coin creeps up in popularity and therefore value.

It’s a good idea to start off with one or two purchases after doing the research on each. As you become more aware of the different coins available, you can then branch out into purchasing others as and when you feel appropriate.

5. Play the waiting game

It’s important to note that when it comes to cryptocurrency, for the most part, it’s a long-term venture. Therefore, you want to be willing and committed to playing the waiting game in order to get access to any profits.

The world of cryptocurrency is certainly something worth investing in if you’re able,, so use these tips to explore the options that are out there.