A Beginner’s Guide to Owning Bitcoin, Ethereum and Solana

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Investing Cryptocurrency Share Share Close Mail Page URL https://money.com/how-to-invest-in-bitcoin-ethereum-solana/ Link copied! A Beginner’s Guide to Owning Bitcoin, Ethereum and Solana By: Gabriel O.

Rodriguez Cruz Gabriel O.

Rodriguez Cruz Associate Editor | Joined February 2018 Gabriel Rodríguez is an editor at Money who has been writing and editing crypto content for over five years. His goal is to make crypto less cryptic, helping newcomers avoid common pitfalls and scams present in the industry. Has also written: Crypto Curious? Here’s a Step-by-Step Guide to Buying Bitcoin for the First Time How to Buy Crypto Without Navigating Multiple Platforms Thinking About Buying Crypto? What First-Time Investors Should Know Before Getting Started A Simple Guide to Buying and Holding Crypto The Most Common Questions People Ask Before Buying Crypto See full bio Editor: Mallika Mitra Mallika Mitra Contributor | Joined May 2020 Mallika Mitra is a contributor to Money, where she covers investing, crypto, debt and many other personal finance beats. Her byline has appeared in the Wall Street Journal, Barrons, and USA Today. Has also written: 3 Smart Moves for Investors After the Fed's Interest Rate Cut How to Buy Stocks Nasdaq Is Reducing the Influence of Giant Tech Firms in a Popular Stock Market Index Good News for Investors: Bull Markets Usually Last Way Longer Than Bears Forget FAANG, Meet the 'Magnificent Seven' Stocks Surging in 2023 See full bio Published: Apr 24, 2026 6 min read Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services. Money; Getty Images Ads by Money. We may be compensated if you click this ad.AdBuy, sell, and hold cryptocurrencies like Bitcoin, Ethereum, and Solana on SoFi®’s easy-to-use platform. CRYPTOCURRENCY AND OTHER DIGITAL ASSETS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Crypto products and services are offered by SoFi Bank, N.A., a national bank regulated by the Office of the Comptroller of the Currency. If you've heard about crypto from a friend, on social media or via headlines and are tempted to start investing, you're not alone. Digital assets like bitcoin and ether have soared in popularity in recent years. But understanding the technology, the risks and the best ways to invest can be a challenge. The crypto world is mired in technological jargon and in many ways, digital assets don't behave like traditional assets such as stocks and bonds. Still, it's not too late to learn. Bitcoin, ether and solana are three of the most popular cryptocurrencies. Each one has a unique underlying technology and use case. Here's how they're different, and how to determine which makes sense for your portfolio. Ads by Money. We may be compensated if you click this ad.AdSponsored by: Crypto trading made simpleSoFi® lets you buy, sell, and hold crypto on a platform backed by the safeguards of a national bank. Start exploring Bitcoin, Ethereum, and more today. LEARN MORE CRYPTOCURRENCY AND OTHER DIGITAL ASSETS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Crypto products and services are offered by SoFi Bank, N.A., a national bank regulated by the Office of the Comptroller of the Currency. HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexas The basics of owning crypto When you buy crypto, you’re not purchasing shares in a company. But the asset doesn’t exactly function like money in a bank account either. Rather, you’re paying for digital assets or fractions of one which are recorded on a blockchain — a decentralized digital ledger spread across a network of computers. Many beginners start buying crypto through an exchange or trading app. Those platforms hold the crypto on your behalf, similar to how a brokerage holds stocks. It’s convenient, but it also means you’re trusting a third party to safeguard your funds. That leaves them vulnerable to cyberattacks and the platform's insolvency, like when FTX collapsed in 2022 and users were unable to access their funds. The alternative is self-custody, or moving your crypto into a personal wallet. This method gives you control of your crypto’s private key, an alphanumeric code used to authorize transactions and prove ownership of digital assets. The trade-off is responsibility. Lose that key, and your funds could be gone forever. Crypto wallets fall into one of two categories. “Hot” wallets are always connected to the internet and easier to use, making them common for everyday access. “Cold” wallets are offline devices designed for long-term storage and added security. Many investors use a mix of both, with the former used to hold and trade small amounts of crypto and the latter used to store larger amounts. Bitcoin, ethereum and solana Before choosing between bitcoin, ether and solana, it's important to understand how they differ. Bitcoin (BTC) is the original cryptocurrency, has the highest market capitalization and is viewed as a store of value primarily due to its scarcity (its supply is capped). Many investors treat it as a long-term holding, similar to how gold is used in traditional portfolios. It’s not typically used for frequent transactions or complex applications. Ether (ETH) is the native token of ethereum, a blockchain network that acts as a platform for decentralized finance applications. Owning ether lets you engage with a broad ecosystem rather than just holding a static asset. Solana (SOL) positions itself as a faster, lower-cost alternative to networks like ethereum. It’s designed to process transactions quickly and with lower fees, which has attracted developers building newer applications. That speed comes with trade-offs, including a shorter track record and technical risks. Put simply, bitcoin centers on preserving value while ether focuses on powering digital activity and solana emphasizes speed and scalability. Choosing between the three cryptos When deciding which digital asset to invest in as a beginner, a useful starting point is to think in terms of purpose rather than price. Bitcoin is one of the simplest cryptocurrencies to understand because its use is narrow: It can be held as a long-term store of value. Being the most popular crypto in the market makes it a common entry point for investors, while its longer history also provides a sense — though not a guarantee — of relative stability within a volatile market. Ether can be slightly more complicated to understand, but also has more uses. Its value is tied not just to supply and demand, but to how much activity happens on its network. Solana's appeal is faster transactions and lower costs, making it attractive for developers and users who prioritize efficiency. But because it’s a younger, less established crypto, its long-term position is less certain than bitcoin's. Beginners considering solana should be comfortable with that added layer of unpredictability. Some investors split their crypto investment across multiple assets to reflect different use cases. For example, you might hold bitcoin for its perceived stability, while allocating smaller amounts to ether or solana for growth tied to network activity. Just make sure you understand what you're actually buying. Crypto grants investors a lot of control over how they manage the assets. It can be bought, sold, lent, traded for fiat currency or other crypto, and even set aside to generate interest. But that greater freedom also means more responsibilities on your end to keep your assets safe. Ads by Money. We may be compensated if you click this ad.AdExplore crypto with SoFi®Get access to more than 30 cryptocurrencies! Build your portfolio with the convenience of one powerful app. LEARN MORE CRYPTOCURRENCY AND OTHER DIGITAL ASSETS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Crypto products and services are offered by SoFi Bank, N.A., a national bank regulated by the Office of the Comptroller of the Currency. Sponsored by: More from Money Best Crypto Exchanges How to Start Owning Crypto With a Long-Term Mindset The Basics of Owning Crypto: What First-Time Buyers Need to Know