The Trading Bible Trading Guides
How to Invest in Cryptocurrency - a Guide for Beginners
By Stelian Olar, Updated on: Feb 28 2025.
Searching for the best cryptocurrency to invest in today because you want to build long-term wealth through digital assets? If you are, then you're in great hands, as I've done extensive cryptocurrency investment research to identify which is the best cryptocurrency to invest in during these dynamic market conditions.
What began as a niche investment with cryptocurrency such as Bitcoin, has transformed into a thriving ecosystem where countless crypto asset projects compete for attention and adoption. The crypto market presents investors with unprecedented opportunities to grow their capital, offering potential returns that few traditional investment (stocks, ETFs, mutual funds) vehicles can match.
However, learning how to invest in cryptocurrency wisely is fundamental to achieving success. Today's digital landscape offers numerous possibilities, particularly as innovative blockchain solutions continue to revolutionize sectors like DeFi, NFTs, smart contracts, and sustainable technology.
With volatile markets presenting both risks and rewards, finding the best cryptocurrency to invest today requires deep analysis of team credentials, technological foundations, and global crypto adoption.
This guide will help you to discover which cryptocurrency to invest in, from well-established cryptocurrencies to promising newcomers, these digital assets could become the cornerstone of your investment strategy.
Let's explore how to invest in cryptocurrency for beginners and show our best cryptocurrency to invest in that show incredible potential for both short-term gains and long term investment!
What Is Cryptocurrency
A cryptocurrency is a digital currency that represents a new form of electronic money, like Bitcoin (BTC) or Ethereum (ETH), that functions as both an innovative payment system and investment vehicle. Cryptocurrencies utilize the blockchain technology to create secure, decentralized networks where transactions can occur directly between users without relying on traditional financial institutions like banks or intermediaries.
Each transaction is recorded on a revolutionary digital system called a blockchain that maintains a complete history accessible to all participants, making it transparent and virtually tamper-proof. Moreover, with rapid advancements in decentralized finance (DeFI), tokenized assets, cryptocurrency exchanges, and innovative protocols, the potential applications and uses for digital currency continue to expand dramatically.
But cryptocurrencies have gained a reputation for also causing significant losses due to various reasons including scams.
This raises the critical question: is cryptocurrency a good investment?
See below the answer…
Is Cryptocurrency a Good Investment?
Cryptocurrencies can be excellent investments with potential for significant gains quickly. While many have lost substantial money in failures like the FTX collapse, cryptocurrency exchange hacks, and numerous failed projects, are cryptocurrencies a good investment for today's market?
Yes, buying crypto can be worthwhile – provided you approach it with proper research and understanding. Similar to bonds, mutual funds, or precious metals, digital assets come in many forms. You might invest in an overhyped token that eventually loses value and disappears, or you could discover a revolutionary blockchain project that transforms entire industries.
Rather than asking, "Should I invest in cryptocurrency now?" consider, "Does a cryptocurrency investment plan fit my goals?"
Despite the volatility, incorporating blockchain investments into a balanced portfolio could be strategic. We're witnessing a technological revolution in finance. The key question isn't whether crypto is too volatile, but whether missing this innovation poses a greater risk.
Now that we know what is cryptocurrency and how to invest let’s see if is it safe to invest in cryptocurrency?
See below…
Is It Safe to Invest in Cryptocurrency?
Cryptocurrency investment carries inherent levels of uncertainty and volatility, regardless of how you approach the market. Digital assets tend to show extreme price movements compared to traditional investments, with periods of remarkable gains often followed by substantial market corrections.
Financial experts suggest limiting high-risk crypto investment to a conservative portion of your overall portfolio — typically around 10%.
There are several trading strategies to optimize your crypto portfolio's performance, such as to invest in multiple cryptocurrencies. Each cryptocurrency may perform differently during various market cycles, so by making a good investment across multiple projects you can protect yourself — to some degree — from negative performance in any single holding.
Now, here are some interesting stats about how many people are invested in cryptocurrency.
See below…
How Many People Are Invested in Cryptocurrency
According to Triple-A, a leading cryptocurrency payments company, as of 2024, there are over 560 million crypto owners worldwide, representing an average of 6.8% of the global population.
India being the leading region in terms of crypto ownership with over 93 million of users followed by China with 59 million users and USA with over 52 million crypto users. It's estimated that hundreds of billions of dollars’ worth of cryptocurrency transactions occur globally each day.
These numbers are reason enough to why should you invest in cryptocurrency.
Source: Triple-AI
Which Is the Best Cryptocurrency to Invest In
Although all cryptocurrencies involve speculation, their risk profiles differ considerably. For instance, Bitcoin remains the largest and most established cryptocurrency to invest in now. It's widely accepted as the market leader and historically most stable. This makes Bitcoin the safest top cryptocurrency for beginners. Indeed, Bitcoin continues dominating the market year to date surpassing for the first time the $100,000 mark.
Some emerging cryptocurrencies offer promising early-stage opportunities. These projects allow investors to participate before mainstream adoption begins. A major advantage is getting better prices during initial ICO presale.
Consider how Ethereum ETH's token launched at just $0.30. Today, this leading scaling solution trades significantly higher, representing remarkable returns. Similarly, other successful blockchain platforms began with early-access sales, including Chainlink, Polkadot, Avalanche, and BNB.
The Best Cryptocurrency for Long Term Investment
When seeking the best cryptocurrency for long term investment, focus on projects with proven track records, strong development teams, and sustainable growth potential. For those aiming at long-term value appreciation, several cryptocurrencies stand out. Projects like Bitcoin (BTC), Ethereum (ETH), and Chainlink (LINK) demonstrate robust fundamentals and widespread adoption, positioning them as potential candidates for long-term crypto market growth.
Bitcoin (BTC)
- Price: $95,640
- Market cap: $1.83 Trillion
As the original cryptocurrency, Bitcoin remains a cornerstone of any long-term portfolio. BTC dominates with nearly 50% of total market cap.
Major institutions continue accumulating during market downturns, with companies like MicroStrategy regularly adding to their holdings. While Bitcoin experiences short-term volatility, its growing institutional adoption makes it a compelling long-term investment consideration.
Ethereum (ETH):
- Price: $3,432
- Market cap: $405 billion
The Smart Contract Pioneer Ethereum continues evolving through significant technological upgrades and ecosystem expansion. Following its successful transition to proof-of-stake and layer-2 scaling solutions, Ethereum has become more efficient and accessible, driving adoption across DeFi, NFTs, and enterprise applications.
This comprehensive utility and continuous innovation make Ethereum potentially the best cryptocurrency to invest in long term.
Chainlink (LINK)
- Price: $21.07
- Market cap: $13.08 billion
Chainlink was developed to solve the critical challenge of connecting blockchains with real-world data. Its oracle network powers countless DeFi protocols and traditional finance integrations by providing reliable external data feeds.
While operating differently from traditional blockchains, Chainlink's essential infrastructure role has established it as a fundamental component of the crypto ecosystem.
The Best Cryptocurrency for Short Term Investment
Now that we've covered the fundamentals of cryptocurrency investment, let's explore some potentially promising options to invest money in cryptocurrency for short-term gains. Remember that this analysis reflects current market sentiment and trends, not guaranteed future performance.
Before proceeding, remember that. while certain assets might appear attractive now, conditions can shift quickly. Always conduct thorough research and consider professional financial guidance.
Let's examine these opportunities.
1. Solana (SOL)
- Price: $197.51
- Market cap: $90.81 billion
Solana SOL is the native token of Solana, a high-performance blockchain platform that operates on a Proof of Stake consensus mechanism. It's gained attention for its lightning-fast transaction speeds, minimal fees, and growing ecosystem of decentralized applications and NFT projects.
With its technical advantages and growing adoption, Solana has become increasingly popular for traders seeking quick market movements.
2. Dogecoin (DOGE)
- Price: $0.32
- Market cap: $46.26 billion
Dogecoin DOGE remains one of the most recognizable cheap cryptocurrency to invest in, originally inspired by the famous Shiba Inu meme. Its price movements often depend on social media influence, particularly from tech personalities.
But is it truly worth considering for short-term gains?
Let's analyze.
The cryptocurrency gained massive attention in 2022 when Tesla started accepting DOGE as payment. This news caused significant price volatility, demonstrating DOGE's potential for dramatic movements.
Despite occasional price corrections, DOGE maintains strong community support and trading volume. However, remember that as DOGE relies heavily on social media sentiment and news events, timing your entry and exit points requires careful attention and risk management.
3. Cardano (ADA)
- Price: $0.87
- Market cap: $29.80 billion
Cardano (ADA) represents a more technically-focused project, developed with a research-first approach. Many traders consider it among the best cryptocurrencies for short-term trading due to its established presence and regular development updates that influence price action.
What makes it potentially attractive for short-term trading?
It combines strong fundamentals with significant market visibility and regular protocol upgrades that often create trading opportunities.
Keep in mind that while Cardano offers a more fundamentals-based approach, it's still best suited for informed traders who understand the technology and can monitor development milestones, as these often trigger price movements within defined ranges.
Now, let’s see where do I invest in cryptocurrency?
See below…
Where Do I Invest In Cryptocurrency
Where to invest in cryptocurrency? You can start through centralized crypto exchanges, mobile platforms, dedicated websites, or specialized crypto brokers. Some enthusiasts participate in network validation through "staking", which requires holding specific amounts of tokens to help secure the blockchain.
Most investors begin their crypto journey through established platforms like Binance or Coinbase, trading apps like Robinhood and Crypto.com, or regulated brokerages like FP Markets and Pepperstone which offer cryptocurrency CFD trading.
Alternative investment options include cryptocurrency-focused mutual funds, such as blockchain ETFs, or through investment vehicles, such as spot Bitcoin ETFs.
Major platforms like OKX, Bybit, or Huobi feature robust security protocols and user-friendly interfaces that help make your investment experience both protected and straightforward.
How To Start Investing In Cryptocurrency Safely
Now that you understand how to invest in other cryptocurrency options beyond just Bitcoin, let's explore how to start investing in cryptocurrency safely. Here's a comprehensive guide to begin your journey:
- Research thoroughly. Before investing any money, take time to understand the fundamentals of blockchain technology and cryptocurrency markets.
- Create your investment strategy. Begin by determining your risk tolerance and investment goals.
- Secure your finances. Never invest more than you can afford to lose - start small with a comfortable amount that fits your budget.
- Start your investment. Once you're ready to begin, follow these specific steps: create an account on your chosen platform, verify your identity, deposit funds in your preferred currency, select your desired cryptocurrency, and carefully review all transaction details before confirming.
- Protect your investment. While cryptocurrency exchanges offer convenient built-in wallets for trading, consider investing in a cold storage hardware wallet for enhanced security of your long-term holdings.
Take your time with each step, and don't rush into making investments before you're fully comfortable with the process.