How Can Beginners Start to Invest in Crypto?12 min read

How Can Beginners Start to Invest in Crypto?12 min read

Invest in crypto such as Bitcoin, Ethereum and altcoins appears intimidating for those who are new to cryptocurrency. 

Where do you even start? This article presents beginner-friendly steps for getting started with cryptocurrency investment in the simplest way possible.

Which Are the Best Cryptocurrencies to Invest in for 2025?

With your crypto account created and funds available you should now select which cryptocurrencies to purchase. 

These cryptocurrencies stand out as top performers expected to deliver strong returns in the upcoming years.

Bitcoin (BTC)

Bitcoin will maintain its lead position among cryptocurrencies because it benefits from strong network effects alongside widespread brand recognition. Despite experiencing short-term price fluctuations, BTC stands as a reliable long-term store of value. Putting 1-2% of your portfolio in Bitcoin offers effective diversification benefits.

Ethereum (ETH)

As the biggest smart contract platform Ethereum supports thousands of decentralized applications and digital assets. 

Ethereum is expected to become the leading blockchain for DeFi and NFTs once it adopts proof-of-stake as this change will significantly boost its scalability. Holding between 3% and 5% of Ethereum in your portfolio represents a solid core investment.

Stablecoins

Stablecoins such as Tether (USDT) enable users to acquire fiat currency stability through blockchain technology. These assets provide fast fund transfers between exchanges while preserving their value. 

You should dedicate 5-10% of your investment portfolio to stablecoins to maintain liquidity and ensure peace of mind.

Solana (SOL)

The Solana smart contract platform stands as one of the fastest expanding systems which delivers Ethereum-compatible programming while providing quicker transaction processing at reduced costs. 

DeFi adoption of Solana continues to rise while its scaling potential allows it to expand its market share. Speculators should consider a 1-3% investment position in SOL.

Cardano (ADA)

Cardano operates as a proof-of-stake blockchain which emphasizes sustainability and scalability. As ADA prepares to launch its smart contract platform it emerges as a notable contender against Ethereum. This investment opportunity stands as a long shot yet may yield returns if you allocate only 1-3% of your portfolio.

These leading cryptocurrencies show promise as frontrunners because they demonstrate strong network foundations and impressive development achievements combined with real-world acceptance. 

Distribute 8-15% of your portfolio across top layer-1 blockchains such as ETH and promising altcoins that have established communities to create a well-balanced initial investment portfolio.

How Much Money Do You Need to Start to Invest in Crypto?

After making your cryptocurrency selections from the top coins list you need to determine the amount of fiat money to deposit to begin investing. 

The smallest investment amount you need to make in cryptocurrency varies according to the exchange or crypto bank you select. However, in general:

The minimum deposit required to open an account on crypto banking platforms such as The Kingdom Bank ranges from $1 to $5. New investors find it easy to begin because of this accessibility.

You can establish an account with a reputable crypto exchange and invest for the first time using only $10-25. 

Investing amounts above $50-100 is ideal to establish a basic diversified portfolio while preventing high percentage trading fees from diminishing smaller investments. Taking that first step remains the most critical action.

What Is the Difference Between Long-Term and Short-Term Cryptocurrency Investments?

Your investment returns in cryptocurrency depend heavily on the strategy you choose and the duration you maintain your investments. 

This analysis highlights the main distinctions between long-term cryptocurrency investments and short-term cryptocurrency investments.

Long-Term Investing

Long-term crypto investing requires investors to buy solid cryptocurrency projects and maintain their holdings for a minimum of one year with the objective of gaining value across multiple market cycles. 

The buy-and-hold strategy gives your investments the necessary time to grow despite experiencing short-term market fluctuations.

Investors who pursue long-term cryptocurrency holdings face reduced risk relative to short-term traders yet they need resilience to endure temporary market downturns and price swings. 

Bitcoin and Ethereum have consistently provided robust multi-year returns to long-term investors who purchased during previous bear markets.

Short-Term Trading

Crypto traders who focus on short-term trades capitalize on price fluctuations from days up to weeks through active buying and selling of positions. 

Traders seek to profit from brief market movements by recognizing temporary upward and downward price trends.

Market sentiment and prices can change rapidly which significantly increases the risk. When trades are executed at the right time they can lead to substantial potential gains. 

Traders depend on technical analysis along with chart patterns and market indicators. Profits are taxed as short-term capital gains.

New investors should consider long-term buy-and-hold strategies through diversified portfolios because they pose lower risks compared to active short-term trading. 

Active trading and long-term investing both contribute to a comprehensive crypto investment strategy.

What Are the Benefits of Investing in Cryptocurrency?

You’re thinking about embracing cryptocurrency while you continue to have reservations? The following benefits might help you see the potential opportunities presented by cryptocurrencies.

Portfolio Diversification

Investing in digital assets like Bitcoin and Ethereum enables you to connect with the innovative crypto asset class which tends to remain uncorrelated with traditional stock and bond markets. 

Investment portfolio risk can decrease through diversification with digital assets.

Inflation Hedge

Major cryptocurrencies demonstrate historical behavior as a store of value equivalent to gold because their limited supply design restricts their quantity. 

These digital assets become strong candidates for long-term protection against inflation and currency debasement resulting from central banks printing money.

High Long-Term Upside

The world currently sees less than 5% of its population owning cryptocurrencies which remain in their initial phase of adoption. 

The entry of more institutions into blockchain technology continues to disrupt traditional finance which suggests that cryptocurrencies maintain strong potential for long-term price growth.

Access to New Financial Systems

Crypto investments provide access to innovative digital financial systems based on blockchain technology.

Investing in cryptocurrency provides access to emerging digital financial platforms built around decentralized finance (DeFi), non-fungible tokens (NFTs), and future Web 3.0 applications. Investors who entered the crypto market early stand to benefit from these new developing opportunities.

Low Barriers to Entry

User-friendly crypto banks such as The Kingdom Bank eliminate the need for technical expertise or large investments to join the crypto space. 

People can start building long-term wealth through crypto with just $50-100.

Best Online Bank to Invest in Crypto in 2025

Among online banks for cryptocurrency investment, The Kingdom Bank represents one of today’s leading choices. 

The Kingdom Bank offers several important features that make it the best choice for beginners entering the cryptocurrency market in 2025.

• The Kingdom Bank operates as a certified digital bank offering a secure crypto platform with regulatory compliance.
• Multi-Currency Account allows users to combine multiple cryptocurrencies and fiat currencies into a single account.
• The Kingdom Bank maintains a low-cost structure with competitive trading fees for cryptocurrencies and eliminates the burden of monthly account charges.
• The intuitive dashboard interface of the Beginner-Friendly App is mobile-optimized so new users can easily navigate it.
• Investors can select from more than 50 top cryptocurrencies that offer market-leading prices and liquidity for trading.
• Advanced Tools enable users to set price alerts and limits and construct custom signals while facilitating easy trade imports.
• The Secure Storage system encrypts private keys and stores them offline in secure vaults to maintain fund safety.

The Kingdom Bank serves both new entrants and seasoned crypto investors by offering an integrated platform to manage all assets under one roof. 

By 2025 The Kingdom Bank continues to stand as among the top choices for new cryptocurrency purchases.