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Crypto Basics

How Do You Purchase Cryptocurrency? A Beginner’s Step-by-Step Guide (2025)

Want to buy crypto? Learn how to purchase cryptocurrency safely in 2025 with our beginner-friendly guide. Step-by-step instructions, tips, and common mistakes to avoid.
Token Metrics Team
8 min
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Cryptocurrency has moved from niche tech circles to the mainstream, with millions of people worldwide investing in Bitcoin, Ethereum, and thousands of other digital assets. Whether you want to trade actively, hold long-term, or explore decentralized finance (DeFi), the first step is understanding how to purchase cryptocurrency safely and efficiently.

In this guide, we’ll walk you through everything you need to know—**from choosing the right platform to securing your crypto—**so you can get started with confidence.

Step 1: Understand What Cryptocurrency Is

Before you dive in, it’s important to understand what you’re buying. Cryptocurrency is a digital asset that uses blockchain technology to enable secure, decentralized transactions. Unlike traditional currencies, crypto isn’t controlled by banks or governments.

Some of the most popular cryptocurrencies include:

  • Ethereum (ETH): A blockchain supporting smart contracts and decentralized applications.


  • Stablecoins (USDT, USDC): Pegged to fiat currencies like the US dollar for stability.
  • Altcoins: Thousands of other coins with unique use cases (Solana, Cardano, etc.).

Once you know your options, you’re ready to buy.

Step 2: Choose a Cryptocurrency Exchange

To purchase crypto, you’ll need an exchange—a platform that lets you buy, sell, and trade digital assets.

Types of exchanges:

  1. Centralized Exchanges (CEX): User-friendly and beginner-friendly. Examples: Coinbase, Binance, Kraken, eToro.
  2. Decentralized Exchanges (DEX): Peer-to-peer trading directly from your wallet (Uniswap, PancakeSwap). Better for experienced users.
  3. Brokerage Apps: Apps like PayPal, Cash App, Robinhood let you buy crypto, though withdrawals may be limited.

What to look for in an exchange:

  • Security: Two-factor authentication (2FA), insurance, and strong history.
  • Fees: Look for transparent trading, deposit, and withdrawal fees.
  • Supported assets: Ensure your chosen exchange lists the coins you want.
  • Regulation: Use platforms compliant with your country’s laws.

Step 3: Create and Verify Your Account

Most centralized exchanges require Know Your Customer (KYC) verification for security and regulatory compliance.

What you’ll need:

  • Email & phone number: For account creation.
  • Government-issued ID: Passport, driver’s license, or national ID.
  • Proof of address: Sometimes required for higher transaction limits.

Once verified, you’ll gain full access to trading and withdrawals.

Step 4: Deposit Funds Into Your Account

You can’t buy crypto without adding funds.

Common payment methods:

  • Bank transfers: Usually the cheapest option but may take 1–3 days.
  • Debit/Credit cards: Fast but with higher fees (often 2–4%).
  • E-wallets & PayPal: Convenient but may have limits.
  • P2P transfers: Directly buy from other users (on platforms like Binance P2P).


Pro Tip: Always compare deposit fees before funding your account.

Step 5: Choose Which Cryptocurrency to Buy

Beginners often start with Bitcoin or Ethereum due to their liquidity and stability. However, thousands of altcoins are available—each with unique purposes.

Factors to consider before buying:

  • Market cap: Large-cap coins are generally less volatile.
  • Project fundamentals: Check the coin’s whitepaper and team.
  • Use case & community: Active projects with strong ecosystems are more promising.
  • Volatility: Understand the risks of smaller, high-reward tokens.

Step 6: Place Your Order

When you’re ready, navigate to the Buy/Sell section of your exchange.

Order types:

  • Market Order: Instantly buys at the current price. Best for beginners.
  • Limit Order: Sets a specific price at which to buy. Great for strategic entry.
  • Recurring Buy: Automates purchases (also known as dollar-cost averaging).

Example: If Bitcoin is $50,000 and you want to buy $100 worth, your market order will instantly execute at the best available price.

Step 7: Store Your Cryptocurrency Safely

Once purchased, you’ll need a wallet to store your crypto. Leaving assets on an exchange can expose you to hacking risks.

Types of wallets:

  • Hot Wallets: Online, exchange-based, or software wallets (MetaMask, Trust Wallet). Easy to use but more vulnerable.
  • Cold Wallets: Offline storage like Ledger or Trezor hardware wallets. Ideal for long-term security.

Tip: “Not your keys, not your coins.” If you hold significant funds, transfer them to a private wallet where you control the keys.

Step 8: Stay Informed and Manage Your Investment

Crypto markets are volatile. Prices can change rapidly, so keep track of market trends and news.

Best practices:

  • Set alerts: Use tools like Token Metrics or CoinMarketCap to monitor prices.
  • Diversify: Don’t put all your money in one coin.
  • Avoid emotional trading: Stick to your plan and avoid panic-buying or selling.
  • Use security tools: Enable 2FA and avoid sharing sensitive information.

How Much Should You Invest in Crypto?

Only invest what you can afford to lose. Experts often recommend starting with 1–5% of your portfolio and increasing gradually as you gain confidence.

Common Mistakes to Avoid When Buying Crypto

  1. Skipping research: Don’t buy a coin just because it’s trending.
  2. Using unsecured exchanges: Stick to reputable platforms.
  3. Not securing your wallet: Leaving funds on exchanges long-term.
  4. Falling for scams: Avoid too-good-to-be-true offers and unverified projects.
  5. Overtrading: Excessive buying/selling leads to higher fees and losses.

FAQs: Buying Cryptocurrency

1. Can I buy crypto without an exchange?
Yes. You can use peer-to-peer platforms or crypto ATMs, though fees may be higher.

2. Do I need a lot of money to start?
No. Many exchanges let you buy as little as $10 worth of crypto.

3. Is buying crypto legal?
In most countries, yes. Always check your local regulations.

4. What’s the safest way to buy?
Use a regulated exchange and store your funds in a hardware wallet.

Final Thoughts: Getting Started with Cryptocurrency

Purchasing cryptocurrency isn’t complicated—it’s about choosing the right platform, securing your funds, and investing wisely. Whether you’re buying Bitcoin as a long-term investment or exploring altcoins for potential growth, the steps are the same:

  1. Pick a reliable exchange
  2. Verify and fund your account
  3. Select your crypto and buy
  4. Secure it in a private wallet

The crypto market is full of opportunities—but also risks. Start small, do your research, and approach your investment journey with a long-term mindset.

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About Token Metrics
Token Metrics: AI-powered crypto research and ratings platform. We help investors make smarter decisions with unbiased Token Metrics Ratings, on-chain analytics, and editor-curated “Top 10” guides. Our platform distills thousands of data points into clear scores, trends, and alerts you can act on.
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analysts, data scientists, and crypto engineers
30 Employees
analysts, data scientists, and crypto engineers
30 Employees
analysts, data scientists, and crypto engineers
Want Smarter Crypto Picks—Free?
See unbiased Token Metrics Ratings for BTC, ETH, and top alts.
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Token Metrics Team
Token Metrics Team

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Crypto Basics

How Do I Find Moonshot Crypto Projects?

Token Metrics Team
8 min

Introduction: The Alpha is in the Early Entry

Everyone wants to catch the next 100x token before it explodes. The real trick isn’t riding the hype — it’s getting in before the hype begins. That’s where the real alpha is. Early entry into promising crypto moonshots gives you a massive edge, but how do you consistently find these hidden gems before they go viral?

This guide breaks down where early-stage opportunities hide, what tools to use, and how smart investors separate real moonshots from noise.

🧭 What Does “Early” Really Mean?

Being early doesn’t mean buying after it’s on Coinbase or featured by YouTubers. It means:

  • Before centralized exchange listings
  • Before influencers mention it
  • Before 1,000 holders
  • Before mainstream Twitter threads and Reddit buzz

Getting in early usually involves doing the work—but tools and tactics can help.

🔍 Where to Discover Moonshot Projects Early

1. Crypto Twitter (X)

The fastest-moving crypto intelligence hub. Look for:

  • Threads from micro-cap hunters
  • “Low cap gems” lists
  • VCs and founders talking about new trends
2. Token Launch Platforms

These platforms often list early-stage projects before they go mainstream:

  • CoinList
  • DAO Maker
  • Polkastarter
  • Bounce
3. Reddit & Discord Alpha Groups

Subreddits like r/cryptomoonshots and r/AltcoinDiscussion are full of degens sniffing out new coins. Just beware of shills.
Private Discords like Token Metrics or paid alpha communities provide filtered insights from experts.

4. DEX Tools & On-Chain Analytics
  • Use DEXTools to track newly listed pairs.
  • GeckoTerminal and Birdeye are great for Solana and other chains.
  • TokenSniffer can help check smart contracts and detect rugs.
5. Token Metrics Platform

The Token Metrics AI tools analyze thousands of tokens and surfaces early movers based on:

  • Momentum
  • AI grades
  • Social & on-chain trends
    Perfect for filtering low-cap coins based on data, not hype.

🧠 What to Look For in an Early-Stage Moonshot

If it checks 3–5 of these boxes and you’re early? It might be worth a bet.

🔄 Early Signals That a Token May Explode

Watch out for these signals across Twitter, Telegram, and DEX listings:

  • Price up + volume surging + no CEX listing
  • New partnerships or ecosystem integrations
  • Dev activity visible on GitHub
  • Listings on Token Metrics AI indices
  • Whale wallet accumulation on-chain

Example: If you see a project listed on GeckoTerminal, surging in volume, mentioned in a Token Metrics Bullish Signal — that’s a sign to dig deeper.

🧰 Tools Every Moonshot Hunter Should Use

Combine tools to validate your picks from multiple angles.

📈 Case Study: How Early Detection Pays Off

Let’s say you spotted Bonk (BONK) on Solana in December 2022:

  • < $1M market cap
  • Listed on Birdeye first
  • Strong meme narrative (Solana’s Shiba)
  • Picked up by Token Metrics AI scanner
  • Went viral on Solana Twitter before CEX listings

If you got in pre-hype, your 10x to 50x gains were very possible.

⚠️ Red Flags to Avoid

Even if you’re early, avoid traps:

  • Anonymous devs + no roadmap = high risk
  • Too good to be true tokenomics = pump-and-dump
  • Overly hyped on day 1 = exit liquidity trap
  • Telegram full of bots = engagement farming
  • No working product = vaporware

Early doesn’t always mean safe. Do your due diligence.

📊 How Token Metrics Helps You Get In Early

With the Token Metrics platform, you can:

  • Scan coins with low market cap but high AI ratings
  • Filter coins by sector, grade, momentum, volume
  • See bullish and bearish signals before the crowd
  • Get weekly Moonshot reports from analysts
  • Track early-stage index performance for emerging themes

That’s how you go from guessing to investing.

🧠 Final Thoughts: Early Access = Edge

In crypto, timing is everything. If you can consistently find promising moonshots before they hit the mainstream, the upside is massive. But it takes strategy, tools, and a data-first mindset.

By combining on-chain signals, AI analysis, narrative momentum, and community validation, you can sharpen your edge — and maybe catch the next Shiba, Pepe, or Solana before the crowd.

Crypto Basics

What is a Moonshot in Crypto?

Token Metrics Team
6 min

What Does “Moonshot” Mean in Crypto?

In the fast-paced world of cryptocurrency, a “moonshot” refers to a crypto project or token that has the potential to achieve explosive, exponential gains — often 10x, 50x, or even 100x returns. The term originates from the phrase “to the moon,” a popular crypto meme used when the price of a coin skyrockets. Moonshots are speculative plays, typically centered around new, low market-cap projects that haven’t yet caught the mainstream’s attention.

While the rewards can be life-changing, the risks are equally significant. In this guide, we’ll explore what makes a crypto asset a moonshot, how to spot one early, the risk/reward tradeoff, and how you can approach moonshots like a pro.

What Qualifies as a Moonshot?

A moonshot crypto token isn’t just any new coin — it’s one with specific characteristics that make it ripe for explosive growth, including:

  • Low market capitalization – Often under $50 million.
  • Early-stage narrative – Not yet listed on major exchanges or hyped by influencers.
  • Strong tokenomics – Well-designed supply, utility, and incentives.
  • Community momentum – Organic engagement and growing social buzz.
  • Unique value proposition – Solving a real problem or aligning with a hot trend like AI, DePIN, RWA, etc.

In short, moonshots are asymmetric bets. You risk a small amount for the chance of a massive return.

Why Moonshots Attract Attention

Moonshots appeal to both degens and visionary investors alike for one key reason: life-changing upside. A $1,000 investment in a 100x coin could turn into $100,000. That level of ROI is hard to find in any other asset class.

And unlike large-cap coins like Bitcoin or Ethereum, where double-digit gains are celebrated, moonshots are expected to multiply in value several times over — often within months.

The Risk Profile of Moonshots

For all their upside, moonshots come with steep risks:

  • Volatility – Price swings of 30-50% in a day are common.
  • Rug pulls and scams – Many new tokens are launched with malicious intent.
  • Low liquidity – It can be hard to enter or exit large positions.
  • Lack of transparency – Anonymous teams and unverified roadmaps are frequent.

Many moonshot projects don’t have sustainable business models, and some may never deliver a product. That’s why proper research and risk management are essential.

Real-World Examples of Moonshots

Here are a few historical examples of coins that were considered moonshots before they exploded:

  • Shiba Inu (SHIB) – Initially written off as a Dogecoin clone, it reached over $40 billion in market cap at its peak.
  • Axie Infinity (AXS) – From under $1 to $165 in 2021 during the NFT gaming boom.
  • Solana (SOL) – Started under $1 and reached over $250 during the bull run.

Each of these projects had early believers who saw the potential before the crowd caught on.

🛠️ How to Evaluate a Moonshot

Here are key areas to assess when evaluating a potential moonshot:

Pro tip: Use tools like Token Metrics AI Grades to scan hundreds of low-cap tokens and detect promising moonshots early using data-driven metrics.

Moonshots vs. Traditional Crypto Investments

If you’re a long-term investor, moonshots should make up only a small percentage of your portfolio.

🧩 Why Timing Matters

Moonshots are all about timing. Catching a token before it gets listed on major exchanges or gains influencer exposure is key. Once the herd finds it, the 100x opportunity is usually gone.

Best times to enter include:

  • Right after token generation (TGE)
  • During stealth launches or fair launches
  • Post-mainnet or major partnership announcement

💼 Should You Invest in Moonshots?

Only if you’re willing to lose what you invest. Moonshots are not for the faint of heart. They are ideal for small, high-risk allocations in your portfolio — think of them as lottery tickets with better odds, provided you do your homework.

To succeed in moonshot investing:

  • Diversify across 5–10 bets
  • Use stop losses or profit targets
  • Stay updated daily
  • Leverage data tools like Token Metrics

🔎 Final Thoughts: Moonshots are the Wild West of Crypto

Moonshots are where fortunes are made and lost. While they offer some of the most exciting opportunities in crypto, they require discipline, deep research, and a healthy risk appetite. Whether you're looking to turn $500 into $50,000 or simply want to understand what drives explosive gains in the crypto space, moonshots are a critical concept to grasp.

Crypto Basics

What Is the Best Crypto Index in 2025? Top Performers and How to Choose the Right One

Token Metrics Team
8 min

With the explosion of cryptocurrencies, narratives, and sectors in 2025, the question for many investors is no longer should I invest in crypto—but how. For those looking for diversified, smart exposure, crypto indices have become the go-to option.

But what is the best crypto index in 2025?

In this guide, we’ll explore the top-performing crypto indices of the year, what makes them effective, and how to choose the best index for your goals—whether you want passive exposure, thematic investing, or AI-powered optimization.

What Makes a “Best” Crypto Index?

Before naming names, it’s important to understand the criteria that define a top crypto index:

✅ 1. Performance

Returns compared to BTC, ETH, and market benchmarks

✅ 2. Risk Management

Ability to avoid deep drawdowns and protect capital

✅ 3. Narrative Alignment

Exposure to emerging trends like AI, Memecoins, RWA, or DeFi

✅ 4. Rebalancing Strategy

How frequently and intelligently the index adjusts

✅ 5. User Access

Ease of investing, transparency, and platform reliability

🏆 Top Crypto Indices in 2025

Here are the top crypto indices dominating investor attention in 2025:

1. Token Metrics AI Memecoin Index

Type: AI-Powered
Strategy: Weekly dynamic rebalancing
Constituents: DOGE, SHIB, PEPE, WIF, BONK, FLOKI

Why It’s a Top Pick:
Memecoins dominated the first half of 2025. This AI-managed index captured upside by reallocating into trending tokens and exiting early during corrections. While risky, its weekly AI signals helped outperform most passive strategies.

Ideal For:
High-risk, high-reward investors looking to ride viral trends with smart protection.

2. Token Metrics AI DeFi Index

Type: AI-Powered
Strategy: Bullish/bearish signals per token
Constituents: AAVE, UNI, LDO, RUNE, GMX, DYDX

Why It’s a Top Pick:
DeFi remains a foundational sector. The AI DeFi Index adapts to fast-changing liquidity trends and trading volumes. It reduces exposure to underperformers and increases weight in strong, breakout tokens.

Ideal For:
Long-term crypto believers who want smarter DeFi exposure with reduced risk.

3. Bitwise 10 Crypto Index Fund (BITW)

Type: Market Cap Passive
Strategy: Holds top 10 coins by market cap
Constituents: BTC, ETH, SOL, BNB, ADA, etc.

Why It’s a Top Pick:
For conservative investors or institutions, Bitwise offers a simple, regulated way to get exposure to the largest digital assets. While it doesn’t capture emerging trends, it offers long-term stability.

Ideal For:
Traditional investors and institutions entering crypto via regulated vehicles.

4. Token Metrics RWA Index (Real World Assets)

Type: AI-Powered
Strategy: Thematic with dynamic risk adjustment
Constituents: MKR, ONDO, XDC, POLYX, CFG

Why It’s a Top Pick:
The Real World Asset narrative surged in 2025, driven by tokenized treasuries and institutional adoption. This index captured the upside while avoiding the fluff.

Ideal For:
Investors looking for exposure to crypto’s real-world utility and stable growth themes.

5. Index Coop – DeFi Pulse Index (DPI)

Type: Passive
Strategy: Weighted DeFi exposure
Constituents: AAVE, UNI, COMP, SNX, LRC

Why It’s a Top Pick:
One of the earliest thematic indices, DPI remains a favorite among DeFi-focused users who prefer full on-chain transparency and DAO governance.

Ideal For:
DeFi-native investors who want decentralized, trustless exposure.

How to Choose the Best Crypto Index for You

The best crypto index isn’t universal—it depends on your risk tolerance, time horizon, and investment goals.

Here’s a breakdown:

AI vs. Passive: What’s Better in 2025?

Passive indices work well for long-term exposure to top tokens, but AI indices have outperformed in 2025 thanks to their ability to:

  • Exit before crashes
  • Rebalance more frequently
  • Shift capital to outperforming sectors

Platforms like Token Metrics offer weekly rebalanced AI indices that are tuned to market momentum, sentiment, and volatility.

Performance Snapshot (Q1–Q2 2025)

Note: Returns are hypothetical and reflect aggregated performance snapshots.

Final Thoughts: What’s the Best Crypto Index in 2025?

The best crypto index in 2025 is the one that aligns with your goals and risk profile.

  • If you want high growth and can handle volatility, explore AI-powered sector indices like Memecoins or DeFi.
  • If you want safer long-term exposure, the Bitwise 10 or Token Metrics HODL Series are smart.
  • If you believe in AI-driven investing, Token Metrics indices lead the market with real-time rebalancing and superior data analysis.

Crypto indices take the guesswork out of investing, allowing you to benefit from market trends without managing dozens of individual tokens.

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