If you’re looking to buy your first cryptocurrency but aren’t sure where to start, this guide is for you. In 2025 we’re seeing major shifts in the crypto world including broad institutional entry, the rise of staking and yield-products, and Layer-2 scaling of networks.

Read on to learn how to invest in cryptocurrency as a beginner, safely and smartly in this new environment.

What is cryptocurrency

Cryptocurrency is a digital form of currency that enables direct online payments between individuals without central intermediaries. Unlike national currencies, the value of cryptocurrencies does not derive from legislation or inherent worth — it comes solely from market demand.

Essentially, a crypto  is valued as much as what people are willing to pay for it. The most recognised cryptocurrencies include Bitcoin (BTC) and Ethereum (ETH), each operating in a decentralised digital economy.

Why invest in cryptocurrency

Investing in cryptocurrency has many benefits, like decentralization, easy access, and diversification. Plus, lots of investors are excited about the big money potential. Cryptos like BTC and ETH have already shown they can bring in massive gains in a short time.

While the upside can be exciting, the crypto market is known for its ups and downs. Stay cautious and invest only what you’re okay parting with if things turn south.

Steps to start: how to invest in crypto

How to start investing in crypto? Before you can invest in crypto market, you’ll need: an investment plan, a secure cryptocurrency wallet, and an account on a digital asset exchange.

Crypto investing strategies: an investment plan

When it’s time to invest in crypto, consider two basic approaches:

• Long-term (buy & hold): You buy crypto and hold for months or years, aiming for appreciation over time. 
• Short-term (active trading): You trade frequently, speculating on crypto-price movements and aiming for quicker gains (and potentially higher risk).

An investment plan outlines your goals and how you’ll try to achieve them. Such a plan helps you make more disciplined choices and improve your chances of generating a return. You might create your plan with the help of a financial advisor. They can help you:

• Review your current financial situation.
• Understand your risk tolerance.
• Select the cryptocurrencies you want to invest in.
• Establish the outcomes you expect and when you anticipate them to happen.

Crypto wallet

A crypto wallet is essential for storing the digital assets you purchase.

Wallets come in two broad categories: hot wallets (online) and cold wallets (offline). Cold wallets are more secure because they are not constantly connected to the internet, making them ideal for long-term storage. Hot wallets are more convenient and are good if you plan frequent access.

Examples:

Hot wallets (mobile/desktop/web): Trust Wallet, Exodus, MetaMask.

Cold wallets: hardware wallets such as Ledger, Trezor, SafePal; paper wallets.

You can find the best option for your needs in our lists of the best cold wallets and best hot wallets.

Where to invest in cryptocurrency: an account on a crypto exchange

To invest, you’ll need an account on a crypto exchange. Setting this up early is wise because verification on centralized exchanges may take several hours or even a day or more. Most exchanges require you to verify your identity after registering. Only then will you be able to buy or sell crypto.

How to buy crypto on an exchange

Assuming you’ve chosen a suitable exchange, created your account and completed verification, you can buy crypto assets by doing the following:

Securely store your crypto  investment: once purchased, transferring the digital assets into a personal wallet you control  is best. (See wallet section next.)

Log into your account: open the exchange website or a pp and log in.

Fund your account by depositing fiat currency or linking a debit/credit card: check the minimum deposit amount and any deposit fees.

Select the cryptocurrency you want to buy: pick the crypto assets you researched and decide how much you want to buy. Exchanges typically show how many coins or fractions you’ll  receive. Note you can buy fractions of major coins (for example, 0.001 BTC instead of 1 BTC) depending on  your capital.

Complete the  transaction: the exchange will process your purchase and send the digital asset to your account wallet.

Managing your investments: how to securely store your cryptos

Cryptocurrencies offer freedom and direct control over your money by eliminating intermediaries — but they also demand responsibility for security. The safety of your holdings largely depends on you. Here are measures you should take:

Back up your private key

Your wallet’s private key (or seed phrase) is the secret phrase that lets you restore your wallet. Write it down, place it in a safe (e.g., envelope in a safe or deposit box). Without it, you risk losing access permanently. 

Never share your private key

Keep it confidential. Only in very special estate-planning contexts might you share access (for example, so a beneficiary can inherit).

Use wallet security features

Many wallets support extra layers  of protection:

• App lock (automatic locking after a certain time)
• Touch/Face ID unlocking 
• Multisignature (requires two or more private keys to move funds)
• Login password/passcode separate from the private key

Applying these to your hot wallet improves security significantly.

Don’t store your crypto on an exchange

When your assets sit on an exchange, you don’t control the private keys. That means if the exchange has operational issues, freezes withdrawals, or goes bankrupt, you may lose access. You can help mitigate the risk of using third-party services like exchanges by researching the best rated crypto exchanges online.

Use a cold wallet for long-term storage

Cold (offline) storage is among the most secure ways to hold crypto for the long term. Transfer holdings you plan to keep for years into a cold wallet rather than leaving them in an exchange.

Alternative crypto investment options

Besides buying crypto directly, you might consider other ways to gain exposure. Keep in mind: these do not mean you own the actual cryptocurrencies.

Crypto ETFs (Exchange-traded funds)

In 2025, Bitcoin and Ethereum ETFs have become some of the most popular entry points for traditional investors. These regulated funds allow you to gain exposure to crypto prices through your regular brokerage account — no wallet setup or direct crypto handling required.

• Spot Bitcoin ETFs (approved in the U.S. in 2024) directly hold Bitcoin and track its market price.
• Ethereum ETFs follow ETH’s value and, in some cases, include staking yield.

These ETFs are available through major financial platforms like BlackRock’s iShares Bitcoin Trust, Fidelity Wise Origin Bitcoin ETF, and ARK 21Shares Ethereum ETF.

Crypto staking and savings 

Many networks now let you stake your crypto (i.e., lock it to help validate or secure the network) and earn rewards. Yield-generating crypto products — including liquid-staking services and staking-friendly ETFs — are gaining traction in 2025.

Tokenized assets

Tokenization is one of the fastest-growing crypto investment trends of 2025. It involves converting real-world assets (RWAs) — such as real estate, bonds, or commodities — into blockchain-based tokens that represent fractional ownership.

• Tokenized assets make traditionally illiquid markets more accessible.
• Major institutions and banks are experimenting with tokenized Treasury bills and real estate funds.
• Popular platforms include Ondo Finance, Backed, and Matrixdock.

Crypto CFDs 

A contract for difference (CFD) lets a trader speculate on the price of a crypto without owning the asset. If your prediction is correct, you profit; if not, you pay the broker the difference plus fees. (Examples: platforms like eToro, Plus500, AvaTrade)

Crypto ETPs/ETNs

Crypto ETPs/ETNs (exchange-traded products or notes) trade on securities exchanges and allow investors to track the price of an underlying cryptocurrency through regulated vehicles. Some are fully backed by crypto assets held in cold storage. These instruments are especially developed in Europe, where regulatory frameworks like MiCA are now in effect. 

Note that an ETN is typically a debt-instrument issued by a bank or issuer, whereas an ETP may be a fund structure; in either case investors should check whether the product is physically backed, the fees, how custody is managed, and the legal jurisdiction. Also, check whether the product is available to retail investors in your country and confirm how the tax-treatment works.

Shares in crypto companies

You can also get indirect exposure by buying shares in public companies involved in crypto. Examples: Coinbase Global (COIN) lets users buy/sell/store many crypto assets; MicroStrategy (MSTR) holds large amounts of Bitcoin in its treasury; PayPal Holdings (PYPL) allows US users to buy/sell major cryptos.

What to consider when investing in crypto in 2025

Investing in crypto is risky. Prices can swing dramatically, and regulation is still evolving, creating uncertainty. You could lose as much as you might gain. Security is a major concern, as not all projects are trustworthy. Be especially vigilant about scams, shady projects, and unrealistic promises.

In 2025 you should also consider:

• Regulatory developments around ETFs and staking. (For example, ETFs have become major inflows and staking products are gaining institutional appeal.
• Yield-products and staking risks: While staking can provide returns, everything from validator risk to contract bugs to changing inflation/distribution rules can affect outcomes.
• Layer-2 scaling and protocol upgrades: Networks like Ethereum are improving scalability (via L2 roll-ups etc.), which affects adoption and potential value.
• Institutional flows: Many large funds are now buying crypto ETFs or staking-enabled products, shifting how crypto behaves relative to traditional markets. 
• Diversification and portfolio fit: Crypto is high risk/high reward — ensure it matches your overall portfolio, risk tolerance, and investment horizon.

Cryptocurrency investment tips: Quick start checklist

• Choose a reputable exchange and open an account (consider platforms like Binance, Coinbase, Kraken, OKX, Bybit). Follow the link to read our list of the best crypto exchanges.
• Set up a secure wallet (consider Ledger, Trezor, SafePal, Trust Wallet, Exodus) and protect your private key.
• Decide on your investment strategy (long -term vs short-term) and pick crypto assets after doing research.
• Buy your chosen asset, transfer to your wallet if appropriate, and consider staking or savings options if available.
• Periodically review your plan, keep track of regulatory/market changes, and adjust as needed.

FAQs