Knowing how to invest in cryptocurrencies can significantly impact your profits: A practical guide for beginners

Recently, the U.S. Trump administration designated Bitcoin as a strategic asset, drawing renewed attention to the cryptocurrency market. In particular, the number of beginners eager to learn proper investment methods for coins is rapidly increasing, but many feel overwhelmed about where to start. This article explains easy-to-follow steps for beginners to invest in coins, offering practical tips from investment strategies to precautions.

Cryptocurrency Investment: Start with the Right Knowledge

Cryptocurrencies are digital assets based on blockchain technology. Managed on decentralized networks rather than central banks, transaction histories are recorded on public ledgers, ensuring transparency and security.

The most famous Bitcoin was first developed by Satoshi Nakamoto in 2009. Altcoins like Ethereum, Solana, and Cardano each have their own technological features and ecosystems.

The biggest appeal of cryptocurrency investing is the potential for high returns. For example, Bitcoin, which was about $900 in early 2017, soared to an all-time high of $126,000 in October 2025. However, due to high volatility, careful approach is essential.

Comparing Three Coin Investment Methods: Which One to Choose?

There are mainly three ways to invest in coins. Understanding each’s characteristics and choosing the method that suits your investment style is important.

Direct Investment via Centralized Exchanges

Centralized exchanges like Binance, Coinbase, and Upbit are the most accessible for beginners. They offer user-friendly interfaces, customer support, and sufficient liquidity for quick trades.

Advantages: Intuitive and fast trading, supports Korean language, beginner-friendly.

Disadvantages: Assets are stored on central servers, posing hacking risks; identity verification (KYC) procedures can be complex. For example, the Mt. Gox hack in 2014 resulted in about 950,000 Bitcoins stolen.

Investment via Decentralized Exchanges

Decentralized exchanges such as Uniswap V4, Raydium, and PancakeSwap involve direct trading through personal wallets.

Advantages: Full control over personal assets, anonymous trading, relatively lower hacking risk.

Disadvantages: Lower liquidity can lead to slower trades; interfaces are more complex, requiring understanding of smart contracts.

Using CFD (Contract for Difference) Leverage Trading

CFD allows profit from price movements without owning the underlying asset, offered on platforms like eToro.

Advantages: With small capital, you can leverage 10x, 20x for larger gains. Profits can be made in both rising and falling markets, with no expiration date.

Disadvantages: Leverage amplifies losses; requires deep understanding of CFD mechanics. Wrong predictions can lead to losing your initial investment.

5 Cryptocurrencies to Watch in 2026

Bitcoin: The Certainty of Digital Gold

Bitcoin, the top market cap cryptocurrency, has recently gained a national asset status thanks to the strategic Bitcoin reserve policy of the Trump administration. Its limited supply of 21 million and widespread adoption make it a strong investment.

Currently trading around $64,400, major institutions like Standard Chartered and Bernstein project it could rise to $150,000–$200,000 by 2026.

Ethereum: The Powerhouse of Smart Contracts

Ethereum is more than just a currency; it’s the core of decentralized applications (dApps) and smart contracts. Leading DeFi and NFT ecosystems, recent staking features integrated into ETF products.

Price is about $1,850 now, with experts expecting it to surpass $5,000 in 2026 and possibly reach $8,000 long-term.

Solana: Fast, Low-Cost Blockchain

Solana is known for its high transaction speed and low fees. It rose to 4th in market cap by 2024, with the approval of spot ETFs expected in September 2025.

Trading around $78.74, analysts see potential for it to reach up to $295 as SEC easing listing standards.

Cardano: The Academically Rigorous Coin

Created by Ethereum co-founder Charles Hoskinson, Cardano undergoes rigorous technical validation. Currently about $0.26, it’s expected to recover gradually after a short-term dip.

Binance Coin (BNB): The Exchange Ecosystem’s Core

BNB, Binance’s native token, offers trading fee discounts and various platform benefits. It’s increasingly regulated worldwide and plays a central role in the BNB Chain ecosystem.

Trading around $588.80, analysts forecast it could reach $1,200–$1,500 by late 2026 and up to $2,800 by 2030.

Four Common Mistakes Beginners Make in Coin Investing

1. Excessive Trading Frequency

Trading multiple times daily driven by emotions leads to high fees and reduced profits. Patience through short-term volatility is key.

2. Underestimating Market Risks

Thinking “blockchain tech is safe” is dangerous. Always stay updated and thoroughly research before investing.

3. Avoiding Stop-Loss and Take-Profit Orders

Not setting stop-losses can result in large losses during unexpected price drops. Practice setting profit targets and executing timely exits.

4. Buying at Highs and Selling at Lows

Getting caught between greed and fear causes buying at peaks and selling at lows. Establish objective investment criteria and stick to them strictly.

Conclusion: Knowledge is Money in Coin Investment

The cryptocurrency market offers dramatic gains and losses. Learning investment methods is important, but understanding basic concepts, trading mechanisms, and risks beforehand is essential.

Refer to expert price forecasts but avoid blind following. Develop an investment strategy aligned with your risk tolerance. I hope this guide provides a solid foundation for your coin investment journey.

Disclaimer: The content of this article is for educational purposes and not investment advice. Cryptocurrency and CFD trading carry high risks of significant losses alongside potential high returns. Always consult an independent financial advisor before investing and ensure you have sufficient risk capacity.