Crypto investment guide: What is Crypto? Which cryptocurrency should I invest in and who are the top reputable crypto exchanges today? Let’s Learn Crypto Trading to unlock the world of cryptocurrency investment from the most basic knowledge.

Crypto investment guide for newbies

The first step for traders to get acquainted with crypto trading is to learn what crypto is. Besides, new traders also need to grasp some of the most basic crypto terms.

Learn about what crypto is.

Crypto is a digital payment system that does not rely on banks to verify transactions. This is a peer-to-peer system. It allows anyone and anywhere to send and receive payments. Unlike physical money that can be carried and exchanged in the real world, cryptocurrency payments exist in digital form. Cryptocurrencies are stored in digital wallets. When you transfer cryptocurrency, transactions are recorded in a public ledger.

Crypto uses encryption to verify transactions. Encryption is present in both the storage and transmission of cryptocurrency data between wallets and to public ledgers. The purpose of encryption is to provide safety and security.

Bitcoin is the first cryptocurrency to be born. From 2009 until now, Bitcoin is still the most valuable electronic currency. Most people are interested in cryptocurrencies because they want to trade for profit. Some people with speculative ambitions will sometimes push prices up very high.

Distinguishing types of crypto

1. Coins: These are coins that belong to a certain blockchain. The coin is independent of other chains. The coin also cannot be used on other chains in its native form. Use cases of coins include: payments, application development, use as a unit of account, etc.

Coins are created through mining. This means computers solve complex algorithms and validate transactions to create coins. The first computer to solve the problem is rewarded with new coins. This ensures that the network is secure and decentralized.

2. Token: Issued by an existing blockchain. The token must depend on that blockchain to function. A token can represent many different things, such as utility, governance, ownership shares, etc. New tokens are issued and distributed by developers using smart contracts. for users.

What is the crypto market?

The crypto market is where crypto buying and selling activities take place. For example, after miners successfully mine, they will announce the amount of mined coins to the market. Traders do not directly participate in mining, so they will participate in trading these coins.

There are two types of exchanges for buying and selling cryptocurrencies. These two exchanges include centralized exchanges (CEX) and decentralized exchanges (DEX).

The difference between these two exchanges is that CEX is controlled by a third party. Traders must perform KYC identification to be allowed to trade. Meanwhile, the DEX operates decentralized based on the blockchain platform. Every transaction on the DEX is peer-to-peer and does not require a third party.

See more: What is crypto? Discover what the world of Crypto

Basic crypto terms for newbies

• Airdrop: a marketing strategy to promote a new coin. After completing the task, players will receive free tokens.
• Altcoin: Refers to coins other than Bitcoin.
• All-Time High (ATH): The peak price a cryptocurrency has reached since its launch date.
• ATL – All-Time Low: The bottom price a cryptocurrency has ever reached since its launch.
• Blockchain: The core technology that powers cryptocurrencies. Blockchain uses a digital ledger to track transactions stored in interconnected blocks.
• Bull market: The market price is increasing.
• Bear market (Bearish): The market price is decreasing.
• FOMO Effect: So what is What is fomo in crypto? Refers to the trader’s fear of whether they will miss a good opportunity or not. FOMO causes traders to decide to buy just because they see the value increasing rapidly, ignoring technical analysis.
• Stablecoin: A cryptocurrency whose value is fixed to another stable asset (such as gold) to limit price fluctuations.
• Staking: Deposit coins/tokens for a certain period of time to earn passive income.

Crypto investment guide in 4 steps

Step 1: Create an account on reputable crypto exchanges such as OKX, MEXC, Bybit, etc.

Step 2: Use a CD/ Passport to do KYC identification.

Step 3: Deposit USDT (cryptocurrency developed on Bitcoin Blockchain and Omni protocol) to start trading in 1 of the following 2 ways:

• P2P: Send and receive USDT between individuals. This method does not incur transaction fees. You should choose a trustworthy seller to avoid being scammed when using P2P to buy USDT. You should choose an account with a completion rate of over 99% and execute at least 2000 orders.
• Mastercard/Visa: This method will limit fraud. However, the fee is very high. Traders usually lose about 3.5% of the total transaction amount or at least 10 USD.

Step 4:  After having USDT on the exchange, traders can start buying and selling similar to the stock market.

Crypto investment guide: Suggestions for top crypto and the most reputable crypto exchanges

The most interesting part of the coin investment guide is identifying the top cryptocurrencies and the most reputable crypto exchanges. Let’s explore the details in the information section below.

Crypto investment guide: Top cryptos to invest in

The top cryptocurrencies you should invest in include:

1. Bitcoin (BTC): This is one of the most valuable coins. After the Bitcoin Halving 2024 event, the price of 1 Bitcoin has reached more than 70,000 USD.
2. Ethereum (ETH): Not just a coin, ETH is also a solution that supports smart contracts and NFTs. One Ethereum currently costs more than $3,900.
3. Binance (BNB): The Binance exchange has an easy-to-use interface regardless of trader experience level. BNB thus becomes a strong coin. One BNB is converted into more than 600 USD.
4. Solana (SOL): The Solana blockchain platform attracts a lot of attention thanks to its support for dApps (decentralized applications) with high speed and affordable cost. One SOL coin costs about 170 USD.

Crypto investment guide: Top best crypto exchanges

Top 4 reputable crypto exchanges include:

1. OKX exchange: Launched in 2017. OKX is growing and becoming one of the leading crypto exchanges in terms of trading volume and liquidity.
2. MEXC exchange: Present in many countries around the world. MEXC offers many attractive promotions such as bonuses, reduced trading fees, etc. Traders can trade Bitcoin and hundreds of other Altcoins at MEXC.
3. Bybit: This is an exchange focusing on futures contracts with leverage up to 100x. Transaction fees at Bybit are also extremely competitive. The order-matching speed on the exchange is very high. Even when there is a large trading volume, the exchange has no delay in order matching.
4. HTX exchange: Based in China. Besides allowing the trading of many types of coins and low fees, the HTX also provides many quality courses for those new to investing.

See more: Open Bybit account: Explore the world of Crypto

Crypto investment guide: What should you keep in mind to avoid scams?

Last but not least is how to avoid scams. New traders need to note the following to avoid encountering unexpected problems:

• The crypto market operates 24/7 and has no price range limits.
• We must find out which cryptocurrencies have real value and which cryptocurrencies are “fake goods”.
• Don’t rush into the game without solid knowledge. If you are new, start your investment journey at the most reputable crypto exchanges. In addition, you should invest in top crypto or famous coins to minimize risks and ensure the safety of profitability.
• Be disciplined, stop loss, and take profit at the right time to avoid losing everything.
• You should participate in trading on CEX to get acquainted and then join DEX.
• Carefully check the legality of the project you want to invest in. Look up information about the exchange and the company behind it. Having enough information will help traders protect their rights in case of a dispute.
• Be careful of projects that promise unbelievable profits. Calmly research the operating system, legal documents, real profit potential of the project, etc.

Summary:

In short, to be successful when trading coins/tokens, please read carefully the Crypto investment guide for newbies. Equip yourself with solid knowledge before depositing money. Don’t be FOMO or listen to anyone’s words and skip checking about the projects or coins you want to invest in. Please continue to follow the Learn Crypto Trading blog to improve your knowledge in this field.

FAQs

Where should I buy and sell crypto?

You should conduct crypto transactions at reputable crypto exchanges. Please refer to exchanges like MEXC, OKX, Bybit, Binance, HTX, etc. These are the leading exchanges in both trading volume and high liquidity.

Where is the best place to learn about crypto trading?

If you want to start investing in cryptocurrencies, you can sign up for short or long-term courses at reputable training centers. If you don’t have much time to spend on courses, you can follow the Trading Crypto blog.

Short-term vs long-term crypto investment: which is better?

Depending on your investment goals and risk tolerance, you will make the appropriate decision. If you want to make quick profits, you can invest in the short term. On the contrary, if you are willing to accept risks and believe in long-term potential, choose to invest in crypto for the long term.