How do you start your first investment in the crypto market?
Introduction: Why do you need an organized trading plan?
The cryptocurrency market is an open market full of opportunities, but it is also filled with challenges. According to market reports in May 2025, new investors face sharp volatility, cyber scams, and strict regulatory laws like GDPR or SEC Regulations. Therefore, it is crucial to start with a well-thought-out investment plan and learn the fundamentals before entering speculation.
In this guide, we provide practical tips for beginners in digital trading, focusing on Technical Analysis, Fundamental Analysis, and Risk Management.
1. Start learning: Do not invest without understanding the market.
Before you buy Bitcoin (BTC) or Ethereum (ETH), you should learn how the digital market works. Here’s where to start:
A. Read about cryptocurrencies:
Major currencies: such as BTC ($109,579) and ETH ($2,561.05), focusing on technical updates like Ethereum Pectra that supported liquidity in DeFi.
Green Crypto: such as ADA (Cardano) and HBAR (Hedera), which focus on Sustainability.
B. Study Technical Analysis:
Use tools like Binance Charts or TradingView to understand Moving Averages and Momentum Indicators like RSI and MACD.
Monitor support and resistance levels like BERA support at $2.8 or SOL resistance at $177.08.
C. Understand Fundamental Analysis:
Check the white paper of projects like Berachain (Proof-of-Liquidity) or Hyperliquid (Decentralized Perpetuals).
Read Binance Research reports on technical updates like the Ethereum Pectra upgrade or HyperEVM.
2. Choose the right platform: Binance or KuCoin?
The platform you choose determines the level of security, liquidity, and available tools. Here’s what to consider:
A. Binance:
Features:
More than 350 cryptocurrencies available.
Tools like Binance Research and Binance Analytics for market analysis.
Support for Futures Trading with leverage up to 125x.
Current price of BNB: $93.90.
Updates: With MGX investing $2 billion in Binance, BNB Chain has become a strong investment attraction platform.
B. KuCoin:
Features:
Support for small caps like Boyco Vaults that attracted $2.3 billion in May 2025.
User-friendly trading interface for new users.
Updates: With the shift towards Web3, KuCoin has become a hub for supporting decentralized AI.
C. Tips for choosing the platform:
Ensuring security: Make sure the platform offers two-factor authentication (2FA) and an Anti-Phishing Code.
Check for licensing: Like BitGo Trust Company, which manages USD1 with full transparency.
Focus on liquidity: Like SOL which saw DEX Volume exceed $3.32 billion in 24 hours.
3. How to invest smartly?
Investing in cryptocurrencies requires a clear plan and detailed analysis. Here are practical steps:
A. Use DCA (Dollar-Cost Averaging) strategy:
What is it? Buying a fixed amount of currency regularly, like $100 of BTC every month.
Why? To reduce the impact of volatility, like BERA which lost 48% of its value between April and May 2025.
B. Do not invest more than you can afford to lose:
Example: If you want to try HYPE (Hyperliquid) at $9.3, invest $100–$200 at most.
Tip: Use limit orders at support levels, like SOL at $172.98.
C. Monitor whales and liquidity:
Use tools like Lookonchain or CoinGlass to monitor large withdrawals from institutional wallets.
Example: Boyco Vaults will launch $2.3 billion on May 6, 2025, which may pressure BERA's price.
D. Do not invest based on tweets or social hype:
Example: PEPE increased by 30,000% in 2023 and then lost 90% of its value in 2024.
Solution: Monitor official project updates via trusted Telegram or X (Twitter).
4. Risk Management: How to avoid losses?
Cryptocurrencies are an open market subject to Sharp Corrections. Here’s how to hedge against risks:
A. Use Stop-Loss orders:
How? Set a specific level to automatically sell the currency if the price drops.
Example: Set a Stop-Loss at $8.50 for HYPE to protect capital.
B. Do not use leverage at the beginning:
Why? Because leverage multiplies losses, like SOL Futures which saw losses exceed 70% in some cases.
Solution: Start with Spot Trading before entering Futures Trading.
C. Diversify your portfolio:
How? Do not invest all your money in one currency.
Example: Buy BTC (50%), ETH (20%), and SOL (10%), leaving 20% for small coins like STX (Stacks).
D. Do not store coins on the platform:
Why? Because platforms can be hacked, like Mt. Gox and FTX in the past.
Solution: Use a Cold Wallet such as Ledger Nano X or Trezor.
5. Effective trading strategies for beginners.
Strategy 1: Regular trading (Buy & Hold for the long term).
Goal: Long-term investment in major currencies like BTC and ETH.
Example: Buy BTC at $109,579 and sell it at $115,000.
Updates: With institutional support from Metaplanet, BTC has become an ideal option for investors.
Strategy 2: Short-term trading (Swing Trading).
Goal: Achieve quick profits from daily or weekly fluctuations.
Example: Use Volume Profile and RSI to identify trading opportunities on HYPE, where it is expected to reach $46 by the end of 2025.
Updates: With the launch of the new fee system on Hyperliquid on May 5, 2025, HYPE has become a speculative investment opportunity.
Strategy 3: Using stablecoins to hedge.
Goal: Protect capital from volatility.
Example: Converting SOL to USDT or USD1 at the $177.08 level.
Updates: USD1 is fully backed by the US dollar, making it a safe option for beginners.
Strategy 4: Continuous market monitoring.
Tools:
Binance Analytics to track liquidity on the blockchain.
DeFiLlama to track TVL (Total Value Locked) on platforms like Suilend and Raydium (RAY).
Example: With a 400% increase in TVL on Stacks (STX) in Q1 2025, STX is a promising investment opportunity.
6. Risks associated with digital trading: How to avoid them?
Risk:
High Volatility
Solution:
Do not invest more than you can afford to lose, and use Stop-Loss.
Risk
Cyber Scams
Solution
Do not invest in unverified projects like Smitham (SMITHAM) that lost 100% of their value.
Risk
Regulatory Risks
Solution
Monitor updates such as GDPR or AI Act that may affect transfers via Bridges.
7. Practical tips for safe digital investing.
Tip 1: Do not use leverage at the beginning.
Leverage like 125x on Binance Futures increases potential losses. Start with Spot Trading.
Tip 2: Learn to use charts correctly.
What to focus on:
EMA 50 and EMA 200 to determine the overall trend.
Volume Profile to understand liquidity at certain levels.
Funding Rate on futures to determine bullish or bearish momentum.
Tip 3: Do not invest in a project without understanding the team and partnerships.
How do you check?
Look for a trained team like the Sui (SUI) team, which includes experts from the Diem Project.
Monitor real partnerships like xPortal that supported SUI through virtual payment cards.
Tip 4: Monitor market data like the experts.
Sources:
Binance Analytics to track movements on the blockchain.
CoinMarketCap and CoinGecko to understand market capitalization and liquidity.
Example: With a flow of $165 million from Ethereum to Solana, SOL became an attractive coin.
Tip 5: Do not ignore regulatory and economic updates.
New regulations: Such as the AI Act in the European Union or GDPR that change transfers via Bridges.
Economic updates: Such as the shift towards Green Crypto that is reshaping priorities in Egypt and the Middle East.
8. Summary: Investing in cryptocurrencies requires analysis, not random speculation.
Summary: Cryptocurrencies are not just a single investment, but an open ecosystem influenced by technical updates, regulations, and liquidity. Therefore, you should start with thoughtful steps, focusing on strong fundamental coins like BTC, ETH, SOL, and avoiding unverified projects like Smitham (SMITHAM).
📌 Always remember:
Analysis is the key to success in the crypto market.
Liquidity and transparency are key to avoiding scams.
Long-term investment requires patience and careful market study.
Start your first investment in crypto.
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