The topic of cryptocurrency investing has been hotly debated in recent years. There are various controversial ideas connected with investing in cryptocurrency, whether it is safe or not, where you should start with, and more. Some people may think that it is very risky to invest in cryptocurrency, and others may think it is profitable to invest in it. Today we will reveal which group of people is more likely to be right.
What is cryptocurrency, and how it works?
So, cryptocurrency (or crypto) is a digital form of money. It exists only online and is not tangible. Banks do not play a role in cryptocurrency processes. It means that transactions can be approved without a middleman (in this case, without banks).
There are no geographic restrictions when it comes to making or receiving cryptocurrency payments, thanks to the peer-to-peer network. Cryptocurrency, as a unique payment type, exists as a digital record on online ledgers. When a payment is made, the record is updated, and the payment is logged in a public blockchain. The payment is accessible as a digital wallet.
*Blockchain is a type of online record book where the system safely and clearly stores transactions so everyone can see them.
How is cryptocurrency different from traditional money?
Cryptocurrencies and traditional money function as a medium of exchange. However, cryptocurrency and traditional money are not the same in many other aspects. This comparison table shows all the core differences between cryptocurrency and traditional money.
| Traditional Money | Cryptocurrency |
| Physical (cash, coins) and digital (bank accounts) | Only digital, no physical form |
| Controlled by governments and central banks | Not controlled by one person or group (decentralized) |
| Banks or payment companies approve and record payments | Verified by many computers using cryptography |
| Can be increased by governments | Often limited (e.g., Bitcoin capped at 21 million) |
| Bank transactions are private and managed centrally | Crypto transactions are public on the blockchain |
| Linked to your real identity (e.g., ID, bank account) | Linked to wallet addresses (not real names) |
| Requires a bank account or financial service | Open to anyone with internet and a crypto wallet |
| Limited to banking hours and holidays | Works 24/7, worldwide |
After taking a look at this comparison table, we understand that cryptocurrencies are transparent, they offer global accessibility, and continuous availability. But they also have some problems. The prices of crypto are unstable and the use of it is limited.
The most popular cryptocurrencies in 2025?
In 2025, even though more than 10,000 cryptocurrencies exist, only a few are well-known. Many people are not interested in other types of cryptocurrencies because of many reasons. Below, you can see what are the top cryptocurrencies in 2025.
- Bitcoin (BTC) – It is the first and the most popular cryptocurrency. Even people who are not involved in crypto, will definitely recognize this one by its name.
- Ethereum (ETH) – Ethereum serves as the leading platform for achieving smart contracts.
- Binance Coin (BNB) – This is among the biggest cryptocurrency exchanges globally.
- Ripple / XRP (XRP) – This cryptocurrency specializes in affordable and quick cross-border money transfers. Ripple supports banks and financial institutions in transferring funds efficiently across countries.
- Solana (SOL) – Solana is a high-speed and low-cost blockchain network. Because of its speed and lower fees it is a strong opponent to Ethereum.
- Cardano (ADA) – Cardano is a cryptocurrency that cares about safety, long-term use, and scientific research. This one is used for sending money, running smart contracts, and supporting decentralized apps (dApps).
- Tether / USD Coin (Stablecoins) – The value of these stablecoins is the same as the U.S. dollar. This means that 1 USDT or 1 USDC consistently holds the value of 1 US dollar.
The risks of cryptocurrency investing
The debate about whether investing in crypto is risky continues to be actual in 2025. Many investors lost money because of scams, hacks, mistakes in the system, and big changes in prices. These problems make crypto an investment that is hard to predict.
Some of the common risks are that:
- prices may quickly increase or decrease
- thanks to hacks, fraud, or losing private keys can lead to losing money forever
- cryptocurrency rules differ between countries and are constantly changing
- errors or malfunctions can occur in blockchain networks
- cryptocurrency transactions cannot be reversed or canceled as soon as they are sent
- most platforms don’t offer insurance or protection for lost funds
- scams and fake tokens can trick inexperienced users
- emotional investing can result in bad financial decisions
As we can see, cryptocurrency is very risky in many aspects. Because of these risks, it is very important to learn how crypto works before we start to invest in it.
In the next section, let’s also look at what makes crypto attractive to many people and what are the rewards.
The rewards of Crypto investing and why people invest in it
Despite the above-mentioned risks, there are also potential rewards in investing in cryptocurrency that you need to understand.
- Diversity: Cryptocurrency is different from regular stocks. It doesn’t always go up or down when the stock market does. Having some crypto can help protect your money no matter what happens
- Protection from Inflation: Bitcoin is a type of money that can help protect your savings when regular money like the US dollar loses value
- Support from major companies: Big companies and even governments are starting to trust crypto
- Durability: Bitcoin and Ethereum have lasted for many years. And, they’re still strong today
- Quick money transfers: Crypto apps enable users to transfer money almost instantly for very low fees
- More crypto communities: Younger generations are beginning to invest in crypto. This could mean continued growth for the future
So, these benefits help explain why many people are still interested in crypto, even with the risks. These rewards of investing in cryptocurrency are different from those that offer traditional investments. For some people crypto is a way to protect their money against economic changes.
We agree that crypto has disadvantages, but you need to be well-informed and educated about it to turn it into a real profit.
How much money should I start with?
Once you decide if crypto is risky for you, the most important question comes up “How much money should I start with in crypto?”
To the question “How much money should I start with in crypto?” is not that easy to answer. It has a lot of factors that you must consider before stepping into crypto world. You must take into consideration your financial position, level of risk you can face to, and, of course, your goals for the investment. Let’s see what you must do understand the answer to that question.
Give yourself these critical questions and try to answer them one by one.
- What is my investment goal? – Here you should understand what you expect from investing in crypto
- How much money am I ready to lose? – This is an important question because the crypto market can be very unpredictable. You should only invest an amount that will not harm your financial stability if things go wrong.
- Do I understand how cryptocurrency works? – First understand what the blockchain is, how wallets work, and how to buy and sell crypto.
- What is my risk tolerance? – Here consider how much ups and downs you’re comfortable with because crypto prices can change very quickly.
- How to keep crypto safe? – Keeping a crypto-investment safe involves safe password practices and being careful with your private keys.
Should I invest in crypto in 2025?
As we already mentioned in the previous section, it is necessary to consider your personal situation and goals before you decide to invest in cryptocurrency in 2025. Crypto offers various opportunities, but you should learn about crypto a lot. Before taking a step do research about investing in crypto, choose a secure platform, and always stay updated.
Now more and more big companies (and even governments) are starting to get involved, which adds some trust to the space.
Moreover, it is a must to remember that crypto can be unstable and complex. Prices in cryptocurrency can rise and fall unexpectedly. Besides, there are many risks like scams, hacks, and changing regulations as we already said. Before investing in crypto, make sure you fully understand how it functions. Additionally, only invest money you are ready to lose, and have a plan to keep your assets safe.
Always be careful, stay informed, and investing in crypto could become a valuable part of your financial investment in 2025.
Conclusion & final thoughts
So, the future of crypto remains uncertain and unpredictable. Some people see it as a revolutionary technology that could transform finance, and others argue that it is too risky and unstable. What is really clear is that cryptocurrency has grown into a global financial phenomenon in 2025, and understanding its fundamentals is essential before deciding to invest in it.
I hope you enjoyed the reading process and found the necessary answers to your questions and you can now make right decisions before starting your cryptocurrency investing journey in 2025.
I also recommend reading about the top 5 investment strategies for your long-term growth and saving vs. investing in order to understand the difference and make only smart decisions.
