In 2025, you've almost certainly heard of the cryptocurrency sector and might be curious about the assets within it. After all, cryptocurrency is making headlines around the world and has even garnered the support of the current US Presidential administration. With tokens like Bitcoin being worth tens of thousands of dollars and people seemingly making millions from cryptos, who wouldn't want to get involved?
However, success with cryptocurrency is not entirely straightforward. Getting started will mean having some foundational knowledge of the industry and being deliberate at every point in time. In this guide, we'll explain how to succeed with cryptocurrency.
What Is Cryptocurrency?
It's not advisable to get involved with an asset class or investment without knowing what it is so first, you should know what cryptocurrency is. Cryptocurrency refers to digital assets based on blockchain technology. Blockchain refers to distributed ledger networks where computing power is split across thousands of devices around the world and not concentrated in a single place. This essentially means that blockchains have democratized power and are not fully under the control of anyone, not even those who create them. Cryptocurrencies are built on various blockchain networks and every transaction completed using them is recorded on these networks.
Unlike fiat currencies like dollars and pounds, the value of cryptocurrencies is mainly determined by the forces of demand and supply. This means that while they may be more profitable to trade than fiat currency, they are more subject to volatility. Some of the most popular cryptocurrencies in the world include Bitcoin and Ether, though thousands of new tokens enter the market every year.
How To Get Started With Cryptocurrency
If you are looking to make the most of the crypto space, you want to take the following steps.
Choose Your Crypto
The very first thing you want to do is decide which crypto or cryptos you want to invest in. There are tens of thousands of tokens available at every given point and these include every niche you can imagine. There are speculative tokens like Bitcoin, meme coins like Dogecoin, stablecoins like Tether, and so on. Each token has its unique benefits and investors are typically advised to spread their funds across many different tokens. If you're trading tokens to make a profit, you will need to do some research into the potential trajectory of each option. Ask yourself what use cases the token has that will create demand for it. For example, XRP is high in demand because of its use for cross-border transactions and this makes it a worthy investment. Cryptos, especially newer ones, need to be looked at with a critical eye before you put your money into it.
Choose A Wallet
As you continue in your crypto journey, you have to practice wallet security at every single turn. There is no point in going through all the trouble of buying tokens if your assets are only going to get stolen or lost. Broadly speaking, there are three types of crypto wallets. There are paper wallets, which involve writing down the location of your tokens on the blockchain and your password details on a piece of paper. There are hot wallets which are digital wallets connected to the internet. Finally, there are cold wallets which are essentially hardware wallets that are not connected to the internet.
Cold wallets are considered the best option for crypto users but the other types have their merits as well. When deciding, ensure that the crypto wallet you choose checks several boxes, including security features, multi-chain and multi-crypto access, as well as, ease of use.
Once you choose, make sure to set up a secure password and recovery phrase and do not give these details to anyone else. Keeping your wallet safe means that your crypto experience will be much better and thus, should be at the top of your priority list.
Buying Your Tokens
Once you've decided on the tokens you want to buy and the wallet you will put them in, you need to go ahead and buy the tokens. There are several platforms through which most crypto users acquire their tokens. There are centralized exchanges like Coinbase and Binance, which are quite popular in the industry. You also have decentralized exchanges, which some investors prefer due to custody concerns. You can also choose peer-to-peer platforms if you prefer. Make sure your account, should you open one, with these platforms is kept secure as well and you follow all their guidelines.
Mining Tokens
While some investors choose to buy their tokens directly from a platform, you might also choose to mine your tokens instead. Mining tokens based on a proof-of-work ecosystem means using specialized computer hardware or software to complete mathematical puzzles. This helps to confirm transactions taking place across the blockchain and is essential for survival. In exchange for doing this work, you will be given a certain amount of tokens. Note that mining on a proof-of-work system is a notoriously energy-intensive affair so make sure you know how much it will cost you before you begin. You might also choose to stake your tokens, which are associated with proof-of-stake ecosystems. Rather than completing mathematical puzzles, you simply lock away your existing tokens for some time and receive interest in the end. This does not yield dramatic profits the way speculative trading does but it is a relatively low-risk activity.
Trade Your Tokens
Once you have the tokens in your possession, you have to decide when to sell them. This is perhaps one of the most complex parts of succeeding with cryptocurrency as investors put endless time and energy trying to decide which token to buy and sell and at what point. There are several ways to go about this. You could read crypto-focused media reports on different tokens and developments to predict when a token will spike or decline in value. For example, it's widely known that Bitcoin sees a price spike following its halving, which happens every four years. Developments within the world of economics and politics also impact the value of various tokens, so staying on top of them should help. You can also opt for crypto trading bots, which can analyze the market and make decisions based on probability. Another option would be to tap into crypto-focused communities with other investors who can advise you on which tokens they are trading and how.
Stay Safe
As much as the cryptocurrency space is exciting, it is often targeted by criminals looking to swindle and exploit investors. These include crypto-jacking, spreading malware, wallet hacking, fishing schemes, fake crypto investment programs, and so on. Staying safe involves educating yourself about the common types of crypto scams so that you know how to avoid them. It also includes keeping your wallet details safe and erring on the side of caution as you invest. If an opportunity or crypto seems too good to be true, it probably is, so you're better off being safe.
You also want to make sure you do not embark on your crypto journey in isolation. This means connecting with other investors online and offline so that you know about developments in the industry and have advice at any given point.
