Zero to HODL: The Crypto Pre-Game

Zero to HODL is a practical, beginner-focused series designed to take you from knowing absolutely nothing about cryptocurrency… to feeling confident enough to start investing smartly and safely.

We’ve stripped away the confusing jargon, flashy hype, and unrealistic promises to give you a realistic roadmap into the world of crypto, one step at a time.

Zero to HODL Part 2:

In Part 1, we broke down cryptocurrency as digital money that lives on blockchain – a public, tamper-proof record of transactions. You learned that Bitcoin is like “digital gold,” Ethereum powers apps, and uses like cheap global transfers or digital collectibles are driving excitement. If you missed it, check Part 1 out. It’s like learning what a phone is before texting.

Part 2 is about taking your first real steps – buying cryptocurrency and keeping it safe. Think of this as setting up a secure piggy bank before adding your coins. Without these steps, you risk losing money to scams, hacks, or simple errors. In 2024, over $3.7 billion in crypto was stolen due to poor security practices. By following this guide, you’ll start smart, avoid traps, and build confidence for the journey ahead.

Step 1: Choose a Trusted Place to Buy Crypto

To buy cryptocurrency, you need a platform where you can trade your regular money (like dollars or euros) for digital coins. These platforms are called exchanges. There are two main types:

• Centralized Exchanges (CEXs): These are like online stores for crypto, run by companies. Examples include Coinbase, Binance, Kraken, and Gemini. They’re easy to use, have customer support, and follow rules to keep things safe, making them great for beginners.

• Decentralized Exchanges (DEXs): These are like online marketplaces where you trade directly with others, no company involved. Examples are Uniswap or PancakeSwap. They don’t ask for your ID, but they’re trickier to use and better for people who already know crypto.

For Beginners: Start with a CEX. Look for one with:

• Strong safety features (like locks to stop hackers).

• A simple app or website that feels clear, not confusing.

• Support for your money (e.g., dollars) and payment options like bank cards or transfers.

• Good reviews from users – check Trustpilot or X posts to see what people say.

Coinbase (super easy, great for U.S. users), Binance (tons of coins, works worldwide), Kraken (focused on safety), or Gemini (follows strict rules).

Choosing a trusted exchange is like picking a safe store to buy from. A bad one could disappear with your money, like the FTX collapse in 2022, which cost users billions. A good exchange keeps your funds secure, offers help if you’re stuck, and follows laws to protect you.

Step 2: Set Up Your Account Safely

Signing up for an exchange is very similar to opening a bank account online. Here’s how:

1. Use a secure email and a strong password (at least 12 characters with letters, numbers, and symbols, like “SunnyHill2025!”).

2. Complete Know Your Customer (KYC) – this means uploading a photo of your ID (like a driver’s license) and sometimes a selfie. It’s a legal step to stop fraud.

3. Turn on two-factor authentication (2FA) right away! This adds an extra lock, like a code sent to an app (Google Authenticator or Authy) every time you log in. Don’t use text messages for 2FA as hackers can trick phone companies to steal texts.

4. If necessary, and you’re prone to forget password, save your password in a password manager (like 1Password or Bitwarden) to keep it safe. I will not suggest chrome to save your password.

Some exchanges now let you use your fingerprint or face ID for 2FA, making it even easier to stay secure. Check if your exchange offers this and do enrol as an added layer of protection.

A secure account is like locking your front door. Without 2FA, a hacker could guess your password and take your money. KYC ensures the exchange follows laws, reducing scam risks, while a strong password and 2FA keep your account safe from intruders.

Step 3: Buy Your First Cryptocurrency

Start with a small amount, say, $10 to $50 to learn without stress. Try buying Bitcoin (BTC), Ethereum (ETH), or a stablecoin like Tether (USDT), which stays close to $1. Here’s how:

1. Add money to your exchange account using a bank transfer, debit card, or (sometimes) PayPal. Bank transfers usually have the lowest fees.

2. Pick a well-known coin like BTC or ETH to avoid risky new projects.

3. Choose a market order to buy instantly at the current price. (A limit order lets you pick a price to buy at later, but it’s more complex for now.)

4. Check the total cost, including any fees, before hitting “Buy.”

As of May 2025, buying $20 of Bitcoin on Coinbase might cost $20.50 due to a $0.50 fee. Always look at the final amount before confirming.

Starting small is like dipping your toes in a pool before diving in. Crypto prices can swing fast – Bitcoin dropped 20% in a day in 2023. A small purchase lets you learn the process without risking big losses. Sticking to major coins avoids scams. Checking fees ensures you’re not surprised by extra costs. Also, it gives you a taste of what the experience will be without any fear of any real ramifications.

Step 4: Understand Extra Costs and Wait Times

Be ready for small charges or delays when buying or moving crypto:

• Gas Fees: These are like tolls you pay to use a blockchain’s network. On Ethereum, they can be $1 to $10, but on Tron or Solana, they’re often under $0.01.

• Slippage: The price might shift a tiny bit between clicking “Buy” and the trade finishing, especially if the market is busy.

• Delays: If the blockchain is crowded (like during a big crypto price jump), your purchase might take minutes or hours to complete.

Networks like Solana or Polygon are faster and cheaper than Ethereum for many coins. Your exchange will show which network your coin uses. You should check this before buying.

Extra costs or delays can feel like paying unexpected shipping fees or waiting for a late delivery. Knowing about gas fees helps you choose cheaper networks (like Tron for USDT), saving money. Understanding slippage and delays prevents panic if a trade takes time. In 2024, Ethereum users spent approximately $2 billion on gas fees, so picking the right network can make a big difference.

Step 5: Move Your Crypto to a Safe Wallet

Don’t leave your crypto on the exchange. It’s like keeping money in a shop’s cash register instead of a safe. Move it to a wallet, which gives you control. Here are your options:

• Hot Wallets: Apps like MetaMask, Trust Wallet, or Coinbase Wallet are like digital piggy banks on your phone or computer. They’re easy for small amounts ($10-$500) but riskier if your device gets hacked.

• Cold Wallets: Devices like Ledger Nano X or Trezor Model T are like physical safes, kept offline for top safety. Best for larger amounts.

• Paper Wallets: Writing your crypto’s secret code on paper. It’s safe but easy to lose, so it’s not great for beginners.

You should Start with a hot wallet like Trust Wallet. If you hold over $500, consider a cold wallet like Ledger.

Exchanges can be hacked or go out of business. This is not exaggeration !  $3.7 billion was lost in exchange hacks from 2011-2024. A wallet gives you a private key (like a secret password) to control your crypto. Without it, you don’t truly own your funds. Hence the saying, “Not your keys, not your crypto.” A wallet keeps your money safe and yours.

Step 6: Guard Your Recovery Phrase Like Treasure

When you set up a wallet, you’ll get a recovery phrase—a 12- or 24-word code. Follow these rules:

• Write it on paper, not your phone, computer, or cloud storage.

• Store it somewhere secure, like a locked drawer or safe. Some split it between two safe places (e.g., home and a trusted family member’s house).

• Never share it, even if someone says they’re “tech support.” That’s a common scam.

Some wallets offer encrypted backups (like Ledger Recover), but double-check their safety before using.

Your recovery phrase is like the key to your house. Lose it, and you’re locked out of your crypto – $1 billion in Bitcoin is stuck in lost wallets. If someone else gets it, they can take everything. In 2025, scammers stole ~$1.9 billion by tricking users into sharing phrases. Keeping it offline and secret protects your money.

Step 7: Steer Clear of Beginner Mistakes

Avoid these common errors:

• Don’t take a photo of your recovery phrase – hackers can find screenshots.

• Don’t spend more than you can lose

• Don’t buy coins just because someone on X or TikTok says they’ll “go to the moon”. Not even your trusted influencer. Do the research on your own.

• Don’t skip app updates. They fix safety issues.

• Don’t use public Wi-Fi for crypto.

In 2025, a rather beginner investor lost $12,000 in ETH after sharing a recovery phrase in a fake “help” chat on X. Stay smart to stay safe.

Crypto doesn’t have a “call customer service” option. One mistake can mean losing everything, with almost no way to get it back. In 2024, scams cost users $1.9 billion. These rules help you avoid traps and build habits to keep your crypto secure.

Bonus Tips

• Taxes: Buying or selling crypto is taxable in many countries. Use apps like CoinTracker or Koinly to track your buys for tax time.

• Scam Alerts: Fake websites or apps pretend to be real exchanges (e.g., “c0inbase.com” instead of “coinbase.com”). Always check the web address and download apps from official stores.

• Stablecoins: Try Tether (USDT) or USDC to hold steady value while learning, avoiding price swings.

What’s Next in Part 3?

You’re now ready to buy and protect your crypto! In Part 3, we’ll dive into reading charts, understanding market cap, and spotting trends (no, not the trends on X).

It’s like learning to read a map before a road trip. Stay tuned!

FAQs

Q: How much should I spend on crypto as a beginner?
A: Start with $10-$50 to learn without worry. Only use money you’re okay losing.

Q: Are exchanges safe in 2025?
A: Trusted ones like Coinbase or Kraken are safe but can be hacked. Move crypto to a wallet for extra protection.

Q: Why move crypto off an exchange?
A: Exchanges control your crypto’s keys. A wallet gives you ownership, keeping your money safe if the exchange fails.

Q: What happens if I lose my recovery phrase?
A: You’ll lose access to your crypto forever. Store it safely and never share it.

Q: Can I buy crypto without giving my ID?
A: DEXs don’t require ID, but they’re harder to use and riskier for beginners. Stick with a CEX for now.