Practical Crypto Investment Guide: A Beginner’s Warm-Up

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Cryptocurrency isn't rocket science - especially for those investing medium to long term. If you can handle a smartphone, you're already equipped to dive in. So, why am I saying this? Simply to help you take the leap with confidence.

In the crypto space, you'll encounter trading, investing, mining, and NFTs. This guide is only tailored for those eyeing medium-term (1–5 years) and long-term (5+ years) investments. Let’s warm up before we hit the track!

Step 1: Start with the Basics:

What Are Cryptocurrencies and Blockchain?

Think of cryptocurrencies as digital money whose value is decided by supply, demand, and market trends - just like the pricing of goods in the real world. Famous examples include Bitcoin (BTC), Ethereum (ETH), and XRP, each with unique utilities.

Blockchain, on the other hand, is the secure digital ledger where transactions occur. It’s transparent, decentralized, and tamper-proof, making it the backbone of crypto.

💡 Pro Tip: Don’t get bogged down in the technical details. Start simple. When your curiosity grows, you’ll naturally learn more.

Check out my blogs on What is Cryptocurrency? and What is Blockchain? for beginner-friendly insights.


Step 2: Pick a Crypto Exchange

To buy cryptocurrencies, you’ll need a crypto exchange - an online marketplace where fiat money (like USD or EUR) is converted into crypto. Some popular exchanges are:

  • Binance

  • Coinbase

  • OKX

  • Bybit

All exchanges require KYC verification, so keep your ID handy. Most also have tutorials to guide you through your first purchase.

💡 Quick Tip: Exchanges aren’t safe for storing crypto long-term. Think of them like lockers in a gym - temporary and not meant for valuables. Learn more in my blog on Centralized vs. Decentralized Exchanges.


Step 3: Set Up a Crypto Wallet

A wallet is your digital vault for cryptocurrencies. While exchanges offer wallet services, a dedicated wallet is safer.

Before setting one up, understand:

  • Public Keys: Shared with others to receive funds.

  • Private Keys: Your secret passcode for access.

Refer my blog about Private Vs. Public keys to get a full idea. It’s simple!

You’ll also encounter hot wallets (connected to the internet) and cold wallets (offline storage). My blog Hot vs. Cold Wallets simplifies the pros and cons of each.


Step 4: Which Crypto Should You Invest In?

Invest in cryptocurrencies that solve real-world problems or have strong utility. Some established options include:

  • XRP: The Ace 🂡 in Cross-Border Payments.

  • Ethereum (ETH): The king 🂮 of smart contracts and decentralized apps.

  • Cardano (ADA): Built for scalability and sustainability.

  • VeChain (VET): Powers supply chain solutions.

  • Chainlink (LINK): Connects blockchains with real-world data.

Bitcoin’s Legacy: The current market leader also known as digital gold and the father of all cryptocurrencies was a groundbreaking investment in the past. 

But currently, I believe there are many cryptocurrencies which offer much value in this space. Don't take my word for it, Do Your Own Research (DYOR)

⚠️ Reminder: This isn’t financial advice. Always DYOR. My blog on Crypto Tokenomics explains how to assess a cryptocurrency’s value.

💡 Quick Tip: Use apps like Trading View to monitor current prices and historical prices easily.


Step 5: Plan Your Investment Strategy

Once you’ve chosen your cryptocurrencies, create a strategy. Don’t invest all your funds at once, it’s risky. Instead, follow the DCA (Dollar-Cost Averaging) method, which involves regular, smaller investments over time.

This strategy minimizes the impact of market volatility. Learn the ropes of DCA to solidify your understanding.



Step 6: Understand the Market Trend You’re In

The crypto market moves in cycles, much like the seasons. These cycles help you decide when to invest and when to be cautious.


Bull Markets (Price Uptrend):

Think of this as summer: everything is bright, exciting, and full of energy. Prices rise, and crypto gets a lot of attention in the media.
It’s a good time to reap the rewards of past investments but be cautious about jumping in at high prices.

Bear Markets (Price Downtrend):

This is winter: quiet and challenging but full of opportunities. Prices fall, and interest fades, but this is the time smart investors buy and prepare for the next bull market.


💡 Pro Tip:  Timing the market perfectly is nearly impossible - even for experts. Instead focus on steady investments DCA to minimize risks. Refer to my blog on Bull vs. Bear Markets for more details.

📈🚀 According to current market data, we are stepping into a major bull market - a season of growth, optimism, and exciting opportunities!


Step 7: Invest Wisely and Stay Updated

Since you're investing medium to long term, here’s your mantra:


Start Small: Only invest what you can afford to lose.

Diversify: Split your investments across 3 - 5 reliable cryptos

DO NOT overdiversify, it will dilute your returns.

Don’t Chase Trends: Crypto influencers will always recommend new coins, but don’t blindly follow. DYOR, choose a few solid options, and stick with them.

Be Patient: Crypto prices are volatile. Stay calm during dips - remember, it’s a long-term game.


Think of investing like growing a tree. Give it time, and don’t panic if it doesn’t bear fruit immediately.

💡 Quick Tip: Use apps like CoinMarketCap and CoinGecko to track your portfolio. 

💡 Word of Advice: Follow crypto influencers, join online communities, and subscribe to informative YouTube channels to stay ahead. 

But don’t trust YouTube crypto influencers blindly, many are like lizards, changing colors to match the latest trend or hype.

DYOR and focus on investing in a few strong cryptocurrencies that align with your goals. This advice comes from experience!


Final Thoughts

Mistakes are inevitable, but they’re also the best teachers. I’ve stumbled many times in this space, and every error was a steppingstone to greater understanding.

Think of the Chinese bamboo tree. It spends years growing roots underground before shooting up almost overnight. In crypto, your patience and learning are those roots. 

They may seem invisible now, but they’re preparing you for incredible growth, both emotionally and financially.

Stick with it, stay curious, and trust the process. Your breakthrough is worth the wait. 🌱


"If you’ve been reading this whole blog to this very final line, I wish you nothing but the very best. May you prosper financially and be a blessing to everyone around you."




Disclaimer: The contents of this article are for informational purposes only and are not financial advice. The views here are just the author’s opinions. The crypto market is volatile, so be sure to do your own research before investing.

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