Getting Started with Cryptocurrency Investment: Trading Strategies Including Bitcoin and Selecting Promising Assets

The Era of Digital Assets: Getting Started with Cryptocurrency Investment

The cryptocurrency market has grown rapidly over the past 10 years, attracting the attention of global investors. Long-term holders among early investors have achieved significant returns, and recent plans by governments to include cryptocurrencies as strategic assets have further boosted market confidence. While more novice investors are beginning to enter cryptocurrency investment, the complex market structure can pose barriers to entry. This document provides a Bitcoin guide covering the basic concepts of cryptocurrencies, major trading methods, various platform types, and promising asset analyses. It also explores common mistakes made by beginners and their solutions.

Definition and Key Features of Cryptocurrencies

Cryptocurrency(Cryptocurrency) is a digital asset based on cryptographic technology. Unlike central bank control, it operates on a decentralized ledger technology called blockchain. This structure ensures transaction transparency while eliminating intermediaries, reducing transaction costs.

Bitcoin is the first cryptocurrency developed in 2009 by an individual or group under the pseudonym Satoshi Nakamoto, followed by thousands of altcoins such as Ethereum, Solana, and Cardano. Each asset has unique technical features and use cases.

Major Benefits of Cryptocurrency Trading

High Profit Potential: Due to high volatility, careful analysis and strategy can generate substantial profits. Historically, Bitcoin has recorded returns ranging from hundreds to thousands of times.

Low Entry Barriers: Most trading platforms require a minimum transaction amount of around $10, and fractional trading allows small investors to participate easily.

24/7 Market Operation: Unlike stock markets, cryptocurrency markets operate year-round, allowing trading without time or location restrictions.

Decentralization: Blockchain technology records transaction history transparently, and no single institution can manipulate the market.

Types of Trading Platforms and Selection Criteria

Features of Centralized Exchanges

Centralized exchanges are operated by institutions or companies. They offer high liquidity, quick order execution, intuitive interfaces, and customer support, making them accessible for beginners. However, since assets are stored on central servers, there is a hacking risk, and identity verification is required to comply with government regulations.

Suitable for: Beginners seeking simple trading and active traders

Features of Decentralized Exchanges

Decentralized exchanges (DEXs), based on blockchain technology, allow users to manage assets directly from their wallets, giving them full control over their assets. With no central server, the risk of hacking is lower, and anonymous trading is possible. However, liquidity can be relatively lower, and understanding smart contracts and private key management is necessary.

Suitable for: Experienced investors prioritizing security and privacy

Structure and Mechanism of CFD Trading Platforms

CFD(Contracts for Difference) are derivative products that generate profits based on price movements without owning the underlying assets. They allow profits in both rising and falling markets, and leverage enables managing large positions with small capital.

Advantages: Two-way trading, maximizing profits with leverage, no expiration constraints

Disadvantages: Risk of amplified losses due to leverage, complex operation, need for essential risk management strategies

Suitable for: Experienced traders who understand CFD mechanisms and can tolerate risks

Cryptocurrency Investment Targets for 2025 Analysis

Bitcoin(Bitcoin): Digital Gold

Bitcoin, the top market cap cryptocurrency, shows continuous growth due to its limited supply(21 million) and widespread adoption. The current price is $92,640, with ongoing inflows of institutional investment funds.

Experts suggest that once regulatory uncertainties are resolved, long-term prices could exceed $100,000, with optimistic scenarios reaching $250,000. Government plans to include it as a strategic asset also act as positive factors.

Ethereum(Ethereum): Leader in Smart Contract Platforms

Ethereum is a core infrastructure for decentralized application development beyond simple currency use. Its current price is $3,250, and it is extensively used in DeFi and NFT ecosystems.

Approval of spot ETFs is expected to attract large institutional funds, with industry forecasts predicting rises to $8,000 by year-end. Inclusion in multiple cryptocurrency reserves is also a positive signal.

Solana(Solana): Competitor in High-Performance Blockchains

Solana features fast processing speeds and low transaction fees, rising as a top market cap asset. Its current price is $138.18.

Increasing collaborations with major institutions and being considered as a candidate for spot ETFs are noted. Some analysts suggest potential rises to $200.

Cardano(Cardano): Blockchain with an Academic Approach

Led by Ethereum co-founder, Cardano was developed based on scientific methodology. Its current price is $0.41, with a circulating market cap of approximately $31.4 billion.

Since announcing plans to include government assets, it has risen over 60%, and breaking resistance could see it rise to $16. It is expected to remain bullish long-term.

Binance Coin(BNB): Core Asset of Exchange Ecosystems

Binance Coin offers various benefits within the Binance exchange ecosystem, such as trading fee discounts and staking. Its current price is $908.20.

Depending on the success of regulatory agreements, it is forecasted to rise to $630 in 2026 and $760 by 2030. The value linked to exchange growth is highly likely to increase.

Common Trading Mistakes Beginners Should Watch Out For

Overtrading: Frequent trading increases fee costs and reduces profitability. Avoid impulsive decisions.

Underestimating Market Risks: Underestimating the complexity of the cryptocurrency market can lead to significant losses. Thorough research and staying updated are essential before investing.

Lack of Stop-Loss and Take-Profit Strategies: Not setting stop-loss levels can lead to unexpected losses when the market moves unfavorably. Pre-setting profit/loss targets is crucial.

Emotional Trading: To avoid mistakes like buying at peaks and selling at lows, patience and careful judgment are necessary. Maintaining a balance between fear and greed is key.

Final Advice for Successful Cryptocurrency Investment

The cryptocurrency market is a dynamic environment capable of delivering both dramatic gains and losses. Before making investment decisions, it is essential to have a basic understanding of blockchain technology, market structure, and the unique features of each asset.

While consulting expert opinions, making cautious decisions aligned with personal investment goals and risk tolerance is vital. This approach can reduce unnecessary errors and minimize losses. Following the fundamental principles of the Bitcoin guide, consider adding cryptocurrencies to your investment portfolio to explore profit opportunities.