What You Need to Start in Crypto
First, you'll need a crypto exchange account. This is essentially your personal space on a trading platform where you'll make transactions. And is absolutely a great option here — you won't even need to register, saving time and effort.
Second, you'll need a wallet. These come in two types: cold and hot. Cold wallets are physical devices or offline storage that keep your encryption keys secure without a connection. Hots, on the other hand, are software-based and require some form of online access.
Third, a secure connection itself. This one's straightforward — just ensure your Wi-Fi is password-protected and that your device is free of malware, which could compromise you and breach the security.
Finally, start with small capital. Never begin with large sums. Do only invest what you can afford to lose.
Should You Trade or Invest?
Crypto trading is the process of buying and selling cryptos for profit. Unlike traditional financial markets, where stocks or commodities are traded, the cryptocurrency market operates 24/7, offering somewhat constant opportunities for transactions.
However, this market is highly volatile, which presents both significant profit potential and increased risks.
As for investing, it revolves around long-term holding and patience. Mechanically, it isn't much different from trading, as transactions are generally conducted on the same platforms. The key distinction is that investing is a far safer option, albeit slower. And perhaps less profitable.
Still, it's an ideal choice for beginners. Not a single doubt about it.
Strategies for Beginners
Below are the main strategies for beginners in both niches — including for trading, if for some reason you decide to pick it without having the proper experience, knowledge and skills.
For Investing
Here are the basic techniques that novice investors can use.
Dollar-cost averaging (DCA)
Dollar-cost averaging is a strategy where one regularly invests a fixed amount in a particular asset, regardless of its price. The goal is to reduce the impact of market volatility and potentially lower the average cost per share. This very approach works well for both new and long-term investors since it removes the need to constantly monitor the market.
Holding (or HODLing)
HODL is a term derived from a misspelling of "hold" in the context of buying and holding cryptos. Strictly speaking, this phrase literally means "buy and hold indefinitely," implying that investors shouldn't sell during market downturns or volatility.
It might sound odd, but in reality, it's practically a core belief among many Bitcoin and cryptocurrency enthusiasts. And, well, it makes some sense. Like, it's a simple strategy, which's ideal for beginners, since it requires almost no action.
You just need to check back in a few years and (hopefully) lock in profits.
Sure do, this approach won't really work for every cryptocurrency, especially given their extreme volatility. But for BTC, it's a reasonable action, as it has historically shown steady long-term growth — despite some short-term dips.
For Trading
And here are the options for those who still prefer the trading style.
Setting stop-loss
A stop-loss is a pending order placed in advance for a long position to limit potential losses if the market declines. The stop-loss level is always set below the asset's current market price. Thus, if the price drops to the specified value, the trade closes automatically at the market rate.
Use it at all costs. You'll thank yourself later when it saves you from a major loss.
Avoiding leverage at first
Leveraged trading lets you diversify your positions, hedge against assets, and profit from accurate short-term forecasts. However, it's rather a semi-professional tool, accompanied by certain complexities and risks.
Avoid it at all costs. At least at the very beginning.
Best Cryptocurrencies to Start With
And here is a list of crypto items that are good enough for beginners.
Bitcoin (BTC)
Since Bitcoin came on the scene in 2009, it's become a symbol of the digital revolution. Even though there are lots of competitors, BTC is still really popular because of its unique role and status.
Moreover, the introduction of exchange-traded funds (ETFs, that is) in January 2024 has made it more appealing for both private and institutional investors. On top of that, most experts think that the U.S. monetary policy easing will drive even more capital into Bitcoin, potentially pushing it to new all-time highs.
Ethereum (ETH)
Ethereum is a platform for building decentralized applications and smart contracts. It's predicted to grow even more popular in 2025, with updates expected to improve the network's scalability and security. A stable and promising choice overall.
USDT/USDC
USDT is a stablecoin. As the name suggests, it's designed to be stable.
And it actually is because it's pegged to the U.S. dollar.
Essentially, it's an alternative dollar, but without regional or banking restrictions. A universal thing: you may use it for transfers between exchanges, investments, remittances, and payments for goods or services.
USDC is also a stablecoin, issued by a U.S.-registered company. A single consortium oversees its entire operation and development. All assets are held in segregated accounts at regulated financial institutions — no offshore entities involved.
Yet fundamentally, USDC works the same way as USDT.
In the end, investing in USDT or USDC is practically the same as investing in the U.S. dollar.
At least from the exit point of view.
And if you're worried about market fluctuations, don't be. With Xgram.io, you can swiftly convert your coins into any other cryptocurrency — instantly and securely.
The market moves fast, yet you can move faster.
Our popular trading directions:
XMR to ETH
LTC to XMR
BTC to USDT
XMR to USDT
Final Tips Before You Start
Finally, before diving into the crypto, consider these tips:
Never (ever) invest more than you can afford to lose. Crypto is volatile, so only use disposable funds.
Use 2FA. Secure your accounts to prevent unauthorized access.
Start small. Begin with a modest investment as you learn the ropes.
Educate yourself continuously. Remain updated on trends, risks, and best practices.
Beware of scams. Be extra cautious of too-good-to-be-true offers and phishing attempts.
Getting started is really simpler than it seems. With the right setup and strategy, you may start exploring the crypto space confidently.
We do really hope that our small guide has been of help to you. And remember: you should approach working with cryptocurrency only with a cool head. No other way.
