How to Get Started in Cryptocurrency (2025 Beginner’s Playbook)
This step-by-step guide shows you how to buy your first crypto with low fees, move it to a secure wallet, choose an exchange for altcoins, and avoid common mistakes. We also cover stablecoins, taxes, and safety must-dos.
Crypto basics in 60 seconds
Cryptocurrency is digital money secured by cryptography and recorded on public ledgers (“blockchains”). Transactions settle globally within minutes, 24/7. The most known assets are Bitcoin (store of value) and Ethereum (programmable money for apps). Everything else is an altcoin.
Pick a regulated on-ramp (KYC & fees)
Choose an exchange or broker that’s licensed in your region, supports your bank/fiat, and publishes clear fee schedules. Compare spread + fees, not just headline numbers.
- Verification (KYC): Expect ID checks and limits at first.
- Funding: Bank transfer usually has the lowest fees vs card.
- Withdrawals: Confirm chain/network support and withdrawal costs.
Make your first purchase (and minimize fees)
- Fund your account by bank transfer to reduce fees.
- Buy a major asset (BTC/ETH) or a stablecoin for flexibility.
- Immediately enable 2FA (authenticator app).
- Withdraw to your own wallet once the trade settles.
Pro tip: Many exchanges offer “advanced” trading interfaces with lower fees than one-click buys.
Wallets: hot vs cold (and which to use when)
Hot wallets (mobile/extension) are connected to the internet—great for small balances and daily use. Cold wallets (hardware or paper) keep keys offline—best for savings. Most users should have both.
| Type | Best for | Pros | Cons |
|---|---|---|---|
| Hot wallet (mobile/extension) | Spending, DeFi, NFTs | Fast, free, easy UX | Higher hack/phishing risk if careless |
| Hardware wallet | Long-term savings | Offline keys, strong security | Costs money; slightly more steps |
See our picks: best cryptocurrency wallets.
Stablecoins & moving funds
Stablecoins (USDC, USDT, DAI, PYUSD) keep a roughly $1 value and are handy for moving funds between exchanges and DeFi. Learn how they work and their risks: What is a stablecoin?
- Always double-check the network (ERC-20, Solana, Tron) before sending.
- Send a small test first—then the rest.
Altcoin exchanges & DYOR (do your own research)
Once you hold BTC/ETH or stablecoins, you can move to altcoin exchanges for broader listings. Evaluate:
- Liquidity: Daily volume & order-book depth.
- Listings quality: Blue-chips vs illiquid micro-caps.
- Security record: Past incidents and proof-of-reserves practices.
Before buying any altcoin, read its whitepaper, tokenomics (supply, unlocks, vesting), and who controls the contract. Consider stablecoins for parking funds between trades.
Security checklist (don’t skip)
- Use an authenticator app (not SMS) for 2FA everywhere.
- Set unique, long passwords; store in a password manager.
- Self-custody long-term holdings on a hardware wallet.
- Verify URLs and extensions; beware of seed-phrase prompts.
- Keep firmware and wallet apps updated.
Taxes & record-keeping
In many countries, swapping one crypto for another, spending crypto, or earning yield are taxable events. Keep a clean log of trades, dates, and cost basis. See our full explainer: Cryptocurrency tax laws (U.S.).
FAQ
Is it too late to buy crypto?
Markets are cyclical. Focus on learning custody, fees, and risk management rather than timing a perfect bottom.
How much should I start with?
Only what you can afford to lose. Start small, practice deposits/withdrawals, then scale.
Should I leave coins on an exchange?
Not for long. Exchanges can be hacked or freeze accounts. Move to a wallet you control.
