Beginner's Guide: Understand how to invest in Crypto in 3 minutes.

Crypto (Cryptos) is, in simple terms, a virtual currency based on cryptographic principles to ensure transaction security. Unlike the currencies we use daily, Crypto has no actual physical form, which leads many people to believe it is merely a bubble with no real value. But is this really the case?

In the past five tumultuous years for Hong Kong and US stocks (from February 2020 to February 2025), the largest global market cap cryptocurrency, Bitcoin, has accumulated an increase of nearly 9 times, far exceeding the Nasdaq Composite Index, S&P 500 Index, and Hang Seng Index during the same period.

If you are attracted by the rise of Crypto and wish to invest but don't know how to start, take three minutes to continue reading, as the following content can quickly get you started.

1. Does cryptocurrency really have long-term investment value?

Many people have such doubts: Why can cryptocurrency rise so much? Does it really possess long-term investment value?

Taking Bitcoin as an example, if we apply the logic of stock investment, a stock that can maintain an upward trend for 5 or even 10 years likely has its unique investment logic. So what is the investment logic behind Bitcoin? It mainly reflects in the following three aspects:

1. Scarcity

The total supply of Bitcoin is set at 21 million, and a "halving" occurs every 0.21 million blocks (approximately every 4 years), reducing the output by 50% each time. Each halving further drives tension in Bitcoin supply, stimulating the price of Bitcoin to rise. The most recent halving occurred on April 19, 2024, and as of March 2, 2025, the cumulative increase is 47.27%.

2. The characteristics of decentralization

Bitcoin operates without relying on central institutions, thus avoiding restrictions from human factors like governments or financial institutions.

Imagine you have a banknote - its value is determined by the central bank's issuance, anti-counterfeiting technology, and it may depreciate due to policy changes. Bitcoin, on the other hand, is different; it is not controlled by a central institution (like a central bank or government) but is maintained by a 'distributed ledger' shared by hundreds of thousands of computers globally. It's like a group of people keeping accounts together; no one can alter the data alone, nor do you need to trust a specific person or institution.

At the same time, Bitcoin also has anti-inflation characteristics. While fiat currencies (like HKD, USD, etc.) may depreciate due to excessive issuance, Bitcoin's total supply is limited and retains value like Gold, hence it is referred to as 'digital gold.'

3. Acceptance and recognition by the market and regulatory agencies

In recent years, Bitcoin has gradually transformed from an 'underground asset' to an official member of the mainstream financial system. With technological advancements, Bitcoin's practicality and value have been increasingly accepted and recognized: JPMorgan, Fidelity, and other well-known investment banks have established Crypto trading desks; regulatory measures related to virtual assets have been issued in the USA and Hong Kong, allowing multiple Bitcoin or Ethereum spot ETFs to be listed for trading; Trump announced plans to include Bitcoin and other cryptos in strategic reserves... These events have further enhanced Bitcoin's intrinsic value.

II. Things to Know Before Investing in Cryptos (Using Bitcoin Spot as an Example)

There are various ways to invest in Bitcoin, the most common of which include Bitcoin spot, Bitcoin futures, Bitcoin ETF, and Bitcoin concept stocks. The most direct way is to trade Bitcoin spot. So, how to trade Bitcoin spot on Futu?

1. Preparatory work for the first trade.

If this is your first time trading Bitcoin spot, you need to first activate your Crypto Account, complete a risk assessment, and then allocate funds from your securities or futures account to the Crypto account. The steps are as follows:

2. Execute the trade.

You can find the latest Quote by searching for 'BTC' or 'Bitcoin'. However, to actually trade Bitcoin spot, you need to select the trading pairs 'BTC/USD' or 'BTC/HKD' in the ' tradable currencies' section.

Is it necessary to have nearly 0.65 million HKD to invest in Bitcoin? In fact, Bitcoin spot does not require buying and selling one by one. Taking Futubull as an example, you can buy a minimum of 0.0003 BTC, which, based on the Quote at the time of the screenshot, is approximately 192.96 HKD.

Moreover, Bitcoin spot is traded 24/7, with the Hong Kong and US stock market closing times and holidays not affecting the market.

In addition to Bitcoin spot, investors in Hong Kong can also choose Other ways to invest in Bitcoin.

3. The risks of investing in Cryptos.

Policy risk: The attitude of regulatory agencies, represented by the USA Securities and Exchange Commission, towards cryptocurrency regulation may still affect the global Crypto market.

Volatility is relatively high: Compared to most Bonds, Stocks, and Funds, the price fluctuations of Cryptos are larger; within the Crypto market, the prices of mainstream coins like Bitcoin and Ethereum are more stable than most Altcoins (tokens other than Bitcoin and Ethereum).

Technical security: Fraud and hacker theft are the most common security issues. Common fraud methods include fake websites, phishing, extortion, and fraudulent ICOs.

Market bubble: Some Altcoins lack practical applications and should be carefully avoided if they rely solely on marketing to inflate prices.

Overall, the development of Crypto has gradually matured and has become an indispensable asset class in the digital age. Similar to the Internet revolution 20 years ago, blockchain technology is reshaping the global financial system. Through scientific risk management and a long-term holding strategy, novice investors can fully share in the economic dividends of this emerging field.