Investing in Crypto for beginners in 2025

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The crypto market has entered a new phase in 2025: from wild experimentation to mature opportunities. More and more people are considering investing in crypto, but for beginners, it can still feel like a leap into the unknown. What are the options? What are the opportunities and where are the risks hiding?

In a time of economic uncertainty, high inflation, and global political tensions, more and more people are looking for alternative ways to grow their wealth. For beginners, investing in crypto can feel like a major hurdle, perhaps even intimidating. However, 2025 might just be the ideal time to get started, provided you approach it wisely. This blog explains why, outlines the current state of the market, and explores the options available for beginners who want to get off to a strong start.

Table of contents

The state of the crypto market in 2025

After years of volatility, the crypto market has repositioned itself in 2025. While many prices remain below the peaks of 2021, we’re seeing clear signs of recovery. The Bitcoin price, often viewed as a barometer for the entire market, is a strong example. In the updated chart below, you can see that BTC recently surged past $90,000. A rise driven in part by positive news around trade agreements and recent geopolitical developments.

Major blockchain projects have refined their technology, regulations have become clearer, and institutional investors are entering the space in increasing numbers. Still, the crypto market remains highly volatile: prices can swing rapidly, sentiment shifts quickly, and global events continue to have a direct impact.

For seasoned investors, none of this comes as a surprise. But for beginners, it can be difficult to figure out where and how to start. The market seems attractive due to the relatively low entry levels, but the complexity of trading, keeping up with the news, and assessing risks can quickly become overwhelming.

Recent price action of Bitcoin (24-04-2025)
Recent price action of Bitcoin (24-04-2025)

What are the options for beginner investors?

If you’re looking to start investing in crypto in 2025, one of the first key decisions is whether to manage everything yourself or to let a professional party handle it for you. Below are eight different ways to get involved in the crypto market:

What are the options for beginner investors?

Actively trading yourself

Actively trading yourself means independently buying and selling in the crypto market through platforms such as Binance, Bitvavo, or Coinbase. You decide which coins to invest in. You can choose well-known coins like Bitcoin and Ethereum, or smaller, more speculative tokens like Solana, Cardano, or meme-coins such as Dogecoin. This requires closely following the market, reading charts, and using tools like RSI (Relative Strength Index) or Fibonacci sequences to perform technical analysis. The goal is to enter or exit the market at the right time for maximum return.

Although this method gives you full control, it demands a lot of time, knowledge, and discipline. Beginners risk making mistakes due to impulsive decisions, for example entering during a hype or selling during a temporary dip. Without experience and a clear strategy, it’s difficult to trade profitably on a consistent basis.

Crypto staking

Staking involves locking up certain cryptocurrencies to support the network and receive rewards in return. Staking is often compared to earning interest on a savings account, as you receive compensation on your staked crypto. This makes it seem like an attractive way to generate passive income. However, in reality, this income is highly dependent on market fluctuations. If the value of your coins drops, your returns can be completely negated. Therefore, this method can’t truly be considered passive income. True passive income is predictable and stable, where you receive a fixed amount at regular intervals, independent of external factors like market prices.

Investing in DeFi projects

Decentralized Finance (DeFi) refers to financial products and services built on blockchain technology, without the involvement of banks or other intermediaries. Think of lending, borrowing, or swapping through smart contracts. Investing in DeFi projects can be appealing due to high interest or returns, but also carries risks such as hacks, bugs in smart contracts, or project failure.

DeFi operates entirely on blockchain technology without central authorities. Instead, platforms use smart contracts to execute transactions automatically. Examples include lending and borrowing on platforms like Aave or Compound, trading on decentralized exchanges (DEXs) such as Uniswap or SushiSwap, or providing liquidity to protocols in exchange for returns (e.g., via Curve Finance or Balancer).

Investing in DeFi projects can be attractive because they often offer higher yields than traditional savings or investment products. Many users earn interest on stablecoins or receive rewards in the form of governance tokens like UNI or CAKE.

Copy trading

Copy trading is a form of investing where you automatically mirror the trading strategies of experienced traders. This can be done via platforms like Bybit, eToro, or Zignaly. The idea is simple: you select a trader whose performance you trust, and your account automatically follows their buy and sell actions.

This method is popular among beginner investors or those who lack the time to trade actively. You don’t need to perform technical analysis or constantly monitor the news. By riding along with the decisions of experienced traders, you increase your chance of returns, provided you choose the right trader.

However, it’s important to realize that the trader’s risk is also your risk. If they incur losses, you do too. That’s why it’s essential to research the trader’s performance, strategy, and risk profile. Some platforms offer insights into historical results, risk scores, and follower counts, helping you make a well-informed choice.

Investing in ICO’s

An Initial Coin Offering (ICO) is a form of crowdfunding where new crypto projects sell their own token before it officially hits the market. It’s somewhat similar to investing in a startup before it goes public. As an investor, you get in at an early stage, often at an attractive price, hoping the token’s value will rise significantly if the project succeeds.

ICOs are appealing because they can yield enormous profits. Well-known projects like Ethereum and Solana started with an ICO, where early investors saw massive returns.
But there are also significant risks:

  • Many projects are still in the concept phase and ultimately fail to deliver.
  • Some ICOs turn out to be scams or disappear once they’ve raised funds.
  • There is often little to no oversight or regulation, leaving you with minimal protection as an investor.
  • Market conditions or regulations can suddenly change, impacting the project’s success.

NFT investments

NFTs (Non-Fungible Tokens) are unique digital assets on the blockchain, such as artwork, collectibles, music, or in-game items. You can buy them via platforms like OpenSea, Blur, or Magic Eden, often in the hope that their value will increase. Well-known examples include Bored Ape Yacht Club and CryptoPunks.

An NFT’s value depends on rarity, community, hype, and the creator. Some increase explosively in price, while others plummet just as fast. Knowledge of the market and trends within Discord communities, for example, is essential. NFTs can be profitable, but are also risky and highly driven by hype and demand.

HODL strategy

NFTs (Non-Fungible Tokens) are unique digital assets on the blockchain, such as artwork, collectibles, music, or in-game items. You can buy them via platforms like OpenSea, Blur, or Magic Eden, often in the hope that their value will increase. Well-known examples include Bored Ape Yacht Club and CryptoPunks.

An NFT’s value depends on rarity, community, hype, and the creator. Some increase explosively in price, while others plummet just as fast. Knowledge of the market and trends within Discord communities, for example, is essential. NFTs can be profitable, but are also risky and highly driven by hype and demand.

Invest in crypto trading companies

Want to take advantage of opportunities in the crypto market but you don’t have the time or knowledge? Then consider partnering with a company that handles everything for you. We explain the difference between two types of providers: crypto investment funds and quantitative trading companies.

A crypto investment fund invests your money in a portfolio of crypto assets, usually following a fixed strategy with a long-term vision. In contrast, a quantitative trading company actively trades using intelligent algorithms that respond to market movements 24/7. You don’t need to do anything, no stress about timing, analysis, or technical details, while your investment is managed automatically.

Pro’s and con’s by investment method

Investment method Pro’s Con’s
Actively trading yourself ✅ Complete control✅ Potentially high profits ❌ Requires a lot of time, knowledge and experience❌ High probability of error for beginners
Crypto staking ✅ Passive return✅ Easy to start ❌ Depending on market rate❌ ‘Passive’ income is not stable or guaranteed
DeFi Projects ✅ High potential returns✅ Full decentralization ❌ Risk of hacks, bugs or bankruptcy❌ Complex for beginners
Copy trading ✅ No technical knowledge required✅ Easy entry through platforms ❌ Dependent on choices of other traders❌ Risks remain
Invest in ICO’s ✅ Possible extremely high profits✅ Early entry points ❌ Often unregulated❌ High probability of failure or scams
NFT-investments ✅ Potential for high value in rare objects✅ Community-driven ❌ Highly dependent on hype❌ High volatility & low liquidity
HODL-strategy ✅ Low effort✅ Suitable for long-term vision ❌ Large fluctuations in value❌ No active protection against market losses
Invest in crypto trading companies ✅ Fully automated✅ Both in rising and falling markets profitable ❌ Less control than when acting on your own❌ Depending on the performance of the algorithm

Why choose a quantitative trading company as a beginner investor?

For those just starting out in crypto investing, the market can feel overwhelming: price fluctuations, technical jargon, and a constant stream of news make it difficult to make informed decisions. Instead of trading on your own or betting on trends like NFTs or DeFi, investing through a quantitative trading firm like Yieldfund offers a much more accessible and potentially more profitable solution.

How Yieldfund relieves beginner investors

Yieldfund understands that the crypto market is complex and rapidly changing. That’s why we’ve developed a platform that fully automates trading in both rising and falling markets. Our strategies use intelligent algorithms that are active 24/7, without making emotional decisions.

While many investors only profit when the market rises, Yieldfund also takes advantage of downturns. By using both long and short positions, we can respond flexibly to any market situation. The result? Returns of up to 60% per year.

For beginner investors, that’s a game-changer. No stress about entry points. No hours spent behind screens or panic during price drops. We take care of everything, so you can benefit from crypto opportunities

But what about risks?

At Yieldfund, everything revolves around protecting your investment. We believe that smart investing starts with minimizing risks, without losing sight of growth. That’s why we use intelligent technology and carefully developed strategies. Our approach is built on three strong pillars: active risk management that continuously adapts to market volatility, a growing guarantee fund as a safety net, and trading via long and short strategies. This way, we aim for stable returns without taking unnecessary risks.

From doubt to action?

The crypto market in 2025 offers unique opportunities, especially now that prices are still relatively low and the sector is gradually recovering. For beginner investors, it’s important to make a choice: trade actively yourself or hand it over to a reliable party. Yieldfund makes it possible to profit from crypto opportunities stress-free, thanks to smart algorithms and active risk management. This way, you can start investing without technical knowledge or experience.

Want to learn more about our strategies and how Yieldfund takes the worry out of investing? Feel free to contact us. Discover how we invest in the future.

Disclaimer: This text is for informational purposes only and does not constitute investment advice or a recommendation

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Version: October 2024

 

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