How to Start Investing in Crypto for Beginners: Step-by-Step Guide

How to Start Investing in Crypto for Beginners: Step-by-Step Guide

* Investing in cryptocurrencies may seem daunting at first but it's actually rather simple especially if you go step-by-step. In this tutorial we'll take you through the fundamentals so you may confidently begin your crypto adventure.

1. What's cryptocurrency trading?

Buying and selling cryptocurrencies on an exchange is known as cryptocurrency trading. You can trade cryptocurrencies with us by using CFDs (contracts for difference) to speculate on their price changes.

Because CFDs are leveraged derivatives you can trade changes in the price of cryptocurrencies without actually owning any of the underlying currency. If you believe the value of a cryptocurrency will increase you can go long (or "buy") when trading derivatives if you believe it will decrease you can go short (or "sell").

via the other hand you purchase the actual coins when you purchase cryptocurrencies via an exchange. To open a position you must first open an exchange account, deposit the entire asset's worth, and keep the cryptocurrency tokens in your wallet until you're ready to sell.

 2.How do cryptocurrency markets work?

The cryptocurrency market functions via a system of peer-to-peer transaction checks rather than a central server since it is a decentralized digital currency network. Through a process known as "mining," the purchases and sales of cryptocurrencies are added to the blockchain a shared digital ledger that stores data.

3.What moves cryptocurrency markets?  

Markets for cryptocurrencies fluctuate based on supply and demand. But because they are decentralized, they are generally immune to the political and economic issues that plague conventional currencies. The following elements can significantly affect cryptocurrency prices even if there is still a lot of ambiguity around them:

Supply: the total number of coins and the rate at which they’re released, destroyed or lost

Market capitalisation: the value of all the coins in existence and how users perceive this to be developing

Press: the way the cryptocurrency is portrayed in the media and how much coverage it is getting

Integration: the extent to which the cryptocurrency easily integrates into existing infrastructure such as e-commerce payment systems

Key events: major events such as regulatory updates, security breaches and economic setbacks

4.Learn why people trade cryptocurrencies

The volatility of cryptocurrencies is well known. Large and fast price changes offer traders who use leveraged derivatives, which permit both long and short positions, the chance to make money. But these also raise your risk exposure at the same time. In other words you run a greater risk when trading a market that is more volatile.

Through a CFD account which is a derivative instrument that allows you to speculate on whether the value of your selected cryptocurrency will increase or decrease you can trade cryptocurrencies with IG. You never actually possess the cryptocurrency instead prices are quoted in conventional currencies like the US dollar. Since CFDs are a leveraged product you can open a position for a small portion of the trade's total value. Although leveraged products can magnify your profits  they can also magnify losses if the market moves against you.

When trading cryptocurrencies with us, you can:

• Buy, sell, and store digital assets securely
• Access real-time market data
• Use intuitive tools for risk management
• Trade major cryptocurrencies and altcoins
• Enjoy 24/7 trading opportunities

5.Pick a cryptocurrency to trade

With us, you can use CFDs to trade 11 major cryptocurrencies two crypto crosses and a crypto index  an index tracking the price of the top ten cryptocurrencies weighted by market capitalisation.

Our selection includes:

• Bitcoin
• Ether
• Bitcoin Cash
• Litecoin
• EOS
• Stellar
• Cardano
• Bitcoin Cash/Bitcoin
• Ether/Bitcoin
• Crypto 10 index
• Cardano
• Chainlink
• Polkadot
• Dogecoin
• Uniswap

11 Major Crypto

6.Open a CFD trading account

It often just takes a few minutes to open a CFD trading account. Additionally you are not required to fund your account until you are prepared to trade. As a FTSE 250 firm we have been giving traders access to top financial markets since 1974. 

7.Find Your Crypto Trading Opportunity

From Bitcoin and Ethereum to the newest altcoins, the cryptocurrency industry provides traders with an endless array of chances. Here's how to identify your cryptocurrency trading opportunity and take full advantage of this fascinating market regardless of your level of experience.

Understand the Crypto Market Landscape:

*Before diving in, it’s essential to understand the basics:

• What is cryptocurrency? Digital currencies that use blockchain technology to operate without central authority.
• Key players: Bitcoin, Ethereum, Binance Coin, and thousands of altcoins.
• Market volatility: Crypto prices can change quickly, presenting both opportunities and risks.

*Identify Trends and Opportunities

• Regulatory news: Government policies and regulations can impact crypto prices.
•  Technological updates: Upgrades to blockchains (like Ethereum 2.0) can influence demand.
•  Market sentiment: News, social media, and influencer endorsements can cause price swings

* Choose the Right Trading Platform

• User-friendly interface: Easy navigation for beginners.
• Low fees: Keep more of your profits.
• Wide range of cryptocurrencies: Diversify your portfolio.
• Strong security: Protect your investments from hacks.

-  Popular platforms include Coinbase, Binance, Kraken, and KuCoin.

* Develop Your Trading Strategy

• Day trading: Quick trades based on short-term price movements.
• Swing trading: Hold for days or weeks to ride trends.
• HODLing: Long-term investing in top cryptocurrencies.
• Risk management: Use stop-loss and take-profit levels to protect your capit

*Manage Risks and Emotions

• Only invest what you can afford to lose
• Set realistic profit targets.
• Avoid emotional trading: Don’t let fear or greed dictate your decisions.
• Diversify your portfolio to reduce risk.

*Stay Updated and Keep Learning

• Following crypto news and market analysis.
• Joining online communities and forums.
• Learning from trusted influencers and educators.
• Keeping an eye on technological upgrades (e.g., Ethereum’s transitions).

8.Take steps to manage your risk and place your trade

If the market moves against you you could lose a lot of money quickly because you're starting your position on margin. You can establish a stop-loss level in the trade ticket to assist control this risk. The stop-loss will immediately close your position and cap your risk if it is activated.

You can also specify a limit level to lock in any profits should the market move in your favor. Here as soon as the market hits the price you've chosen your trade will be instantly closed to ensure profits.

When trading CFDs keep in mind that each contract will stipulate a certain amount for each point of market movement. Your profit or loss excluding expenses will be $100 per contract if the CFD is priced at $10 per point and the price of the underlying cryptocurrency changes by 10 points.

After deciding how many CFDs to trade as well as your stop-loss and limit levels, you would click "place trade" to open your position.

9.Monitor and close your position

This is the example chart for taking Trade : 

1) Enter at Resistance Higher Low Brek 

2)Sell side Entry 

3) 2:3 Target to take 

4) Stoploss at Resistance

FAQs

1) Can I invest 100 rs in cryptocurrency?

Yes, You Can Start

• Most exchanges allow small investments
• Many cryptos are divisible (you can buy fractions)

Platform Options

• WazirX, CoinDCX, Zebpay (India-based)
• Binance, Coinbase (global options)

What ₹100 Can Buy

• Small portions of Bitcoin/Ethereum
• Larger amounts of altcoins
• Good for learning and testing

Key Considerations

• High volatility = high risk
• Transaction fees may eat into small amounts
• Start with established coins (BTC, ETH)

Getting Started

• Complete KYC verification
• Start with reputable exchanges
• Consider it learning money, not savings

Risk Warning

• Only invest what you can afford to lose
• Crypto is highly speculative
• Price swings can be extreme

2) How to Buy Crypto for the First Time

Choose an Exchange

• Research reputable platforms (WazirX, CoinDCX for India)
• Check fees, security features, user reviews
• Download official app or visit website

Create Your Account

• Sign up with email and phone number
• Create strong, unique password
• Enable two-factor authentication (2FA)

Complete Verification

• Upload government ID (Aadhaar, PAN card)
• Provide address proof if needed
• Wait for KYC approval (usually 24-48 hours)

Add Money to Account

• Link bank account or debit card
• Transfer funds via UPI, NEFT, or card
• Wait for deposit confirmation

Make Your First Purchase

• Browse available cryptocurrencies
• Start with Bitcoin or Ethereum for beginners
• Enter amount you want to buy
• Review fees and confirm purchase

Secure Your Investment

• Keep crypto on exchange initially (easier for beginners)
• Consider hardware wallet for larger amounts
• Never share private keys or passwords

Start Small & Learn

• Begin with amount you can afford to lose
• Research before buying different coins
• Track your investment but avoid obsessive checking

3) 

Which Crypto is Best for Beginners?

Top Beginner-Friendly Options

Bitcoin (BTC)

• Most established and widely accepted
• Easiest to understand and research
• Lower volatility compared to altcoins
• Available on all exchanges

Ethereum (ETH)

• Second largest cryptocurrency
• Powers smart contracts and DeFi
• Good long-term potential
• Well-documented use cases

Other Solid Choices

Binance Coin (BNB)

• Backed by major exchange
• Utility token with real use cases
• Generally stable performance

Cardano (ADA)

• Strong development team
• Academic approach to blockchain
• Growing ecosystem

What Beginners Should Avoid

Meme Coins

• Dogecoin, Shiba Inu (too speculative)
• Price driven by hype, not fundamentals

New/Unknown Altcoins

• Higher risk of scams
• Extreme volatility
• Lack of proven track record

Beginner Strategy

• Start with 70% Bitcoin, 30% Ethereum
• Learn the basics before diversifying
• Focus on top 10 cryptocurrencies initially
• Avoid FOMO (Fear of Missing Out)

Key Takeaway

Bitcoin and Ethereum are your safest starting points - they're the "blue chips" of crypto!

Disclaimer: The information provided in this post is for educational and informational purposes only and should not be considered as financial or investment advice. All investments carry risk, including potential loss of principal. Past performance does not guarantee future results. Before making any investment decisions, please consult with a qualified financial advisor who can assess your individual circumstances and risk tolerance. The author is not a licensed financial advisor and assumes no responsibility for any financial decisions made based on this content.

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