April 29, 2025 
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or legal advice.
At Troon, we’ve been deeply involved in the Web3 space for many years. Through building solutions for blockchain and crypto companies, we’ve gained direct exposure to a wide variety of crypto projects, platforms, and digital assets. Over time, we’ve often received coins or tokens as part of the compensation for our development work which gives us firsthand experience in dealing with crypto assets in the real world.
This unique position has allowed us to see how crypto operates beyond just headlines or speculation. We’ve engaged with different types of crypto investments, from stablecoins to altcoins, and have navigated both the practical opportunities and the risks.
Because of that experience, we’re often asked by clients, partners, and other business owners:
“Where do we even begin with crypto?”
This guide is designed to answer that question, clearly and practically, without the hype. Whether you’re a business owner, investor, or just crypto-curious, we’re sharing what we’ve learned, organized by risk level, to help you understand whether (and how) crypto might fit into your broader investment approach.
Further reading: Learn how cryptocurrency is impacting the payment landscape and why it matters for businesses today.
Looking to Accept Crypto as Payment?
At Troon, we help businesses move beyond investing, by integrating crypto payments directly
into your operations. Whether you want to offer digital currency checkout, support international customers, or build Web3-native products, we’ve got the expertise to make it happen.
Get in touch to explore crypto integration for your business.
How This Crypto Investment Guide Works
We’ve broken crypto investment strategies into three levels of risk, from conservative to speculative:
Low-Risk
Real experts work directly with you to understand your unique challenges and opportunities.
Medium-Risk
Established crypto assets with higher growth potential (and some volatility).
High-Risk
Emerging projects, altcoins, and advanced crypto strategies.
Before diving in, here are a few key terms to get familiar with.
Key Terms You Should Know
| Term | Definition |
|---|---|
Centralized Exchange (CEX) |
A company-run crypto exchange where individuals can buy, sell, and hold crypto assets. The exchange acts as an intermediary. Examples: Coinbase, Kraken. |
Decentralized Exchange (DEX) |
A peer-to-peer platform where trades happen directly between users without intermediaries. Often requires more technical understanding. Example: Uniswap. |
Wallet |
A tool (software or hardware) used to store crypto assets securely. Hot wallets are online, cold wallets are offline. |
Staking |
Locking up crypto assets in a blockchain network to help validate transactions and earn rewards (similar to interest or dividends in traditional finance). |
Stablecoin |
A cryptocurrency pegged to the value of a stable asset like the US dollar. Examples: USDC, USDT. |
Fiat |
Traditional government-issued currency, such as USD or CAD. |
LOW-RISK CRYPTO INVESTMENT (Closer to Traditional Finance)
If you’re new to crypto and prefer to start with options that feel more like traditional investments, these are for you. They offer exposure to the crypto world without diving into self-custody or unregulated platforms. Think of this tier as the “training wheels” phase, it’s regulated, familiar, and relatively low volatility.
1
Publicly Traded Crypto ETFs & Funds
- What it is: Exchange-traded funds that track the performance of cryptocurrencies like Bitcoin and Ethereum.
- How it works: Purchased through traditional brokerage accounts and often eligible for tax-advantaged accounts like RRSPs or TFSAs (in Canada).
- Why It’s Considered Lower-Risk: These funds are regulated by financial authorities and held in standard brokerage accounts, removing the need for crypto wallets or technical know-how.
- Examples: Purpose Bitcoin ETF (BTCC), CI Galaxy Ethereum ETF (ETHX)
2
Stablecoins & Interest Accounts
- What it is: Digital assets pegged to fiat currencies (like USDC to USD) used for earning interest.
- How it works: Convert fiat to stablecoins, then deposit them into interest-bearing accounts on platforms like Crypto.com or Kraken.
- Why It’s Lower-Risk: With lower volatility and a 1:1 peg to fiat, stablecoins offer a more predictable way to gain crypto exposure, especially when paired with reputable interest-bearing platforms.
- Examples: USDC on Crypto.com Earn, Kraken Staking for stablecoins
MEDIUM-RISK CRYPTO INVESTMENTS (Higher Growth Potential)
Ready to step a little deeper into the crypto space? Medium-risk investments offer more upside potential, but they also come with increased complexity and market swings. These strategies still have a solid foundation but require a bit more patience and knowledge.
1
Major Cryptocurrencies (Long-Term Exposure)
- What it is: These are well-established digital assets with large market capitalizations and significant global adoption. They form the foundation of the crypto ecosystem and are widely viewed as the most credible long-term plays.
- How it works: Buy and hold in crypto wallets or platforms like Coinbase, Kraken, or Binance.
- Why it’s medium-risk: More volatile than ETFs but less risky than emerging tokens due to strong historical performance. These assets have established market presence and liquidity, making them popular for long-term holding strategies.
- Examples: Bitcoin (BTC), Ethereum (ETH)
2
Staking Assets for Passive Income
- What it is: Staking is a way to earn income by participating in the security and operations of a blockchain network. It involves locking up cryptocurrencies that use a proof-of-stake (PoS) or similar consensus mechanism.
- How it works: Platforms offer staking options where you commit coins (like ETH, ADA, or SOL) for a set time and receive payouts.
- Why it’s medium-risk: Rewards fluctuate, and funds may be locked up; however, the process is typically straightforward and tied to proven networks.
- Examples: Kraken, Crypto.com Earn
HIGH-RISK CRYPTO INVESTMENTS (Speculative Strategies)
These options come with high potential rewards, but also high volatility, complexity, and risk. These investments are often unregulated, rapidly evolving, and harder to predict. They’re best approached by experienced investors or those who’ve done significant research. If you’re comfortable experimenting and know what you’re getting into, this is where innovation (and speculation) lives.
1
Altcoins & Emerging Projects
- What it is: These are cryptocurrencies beyond Bitcoin and Ethereum. Many are designed to serve specific niches (like decentralized finance, gaming, or interoperability between blockchains). While some aim to be the next big breakthrough, others are experimental or unproven.
- How it works: Bought through major or niche exchanges; often have smaller market caps and thinner liquidity.
- Why it’s high-risk: High volatility, regulatory uncertainty, and often incomplete ecosystems.
- Examples: Solana (SOL), Avalanche (AVAX), Chainlink (LINK)
2
DeFi Yield Farming & Liquidity Pools
- What it is: Yield farming is a strategy where investors lend or stake their crypto in decentralized finance protocols to earn interest or token rewards. Liquidity pools, on the other hand, allow users to deposit tokens into decentralized exchanges to facilitate trading and earn a portion of transaction fees.
- How it works: You deposit pairs of tokens into liquidity pools or stake assets to earn rewards—often at variable, high-interest rates.
- Why it’s high-risk: Complex mechanisms, potential for smart contract bugs, and market shifts can quickly wipe out gains.
- Examples: Uniswap, Aave, Curve Finance
3
NFTs & Metaverse Tokens
- What it is: Non-Fungible Tokens (NFTs) are unique digital assets representing ownership of art, music, collectibles, or virtual items. Metaverse tokens are cryptocurrencies used to power virtual economies in digital worlds or games. Both are deeply tied to culture, gaming, and the evolution of digital ownership.
- How it works: Bought via NFT marketplaces (like OpenSea) or acquired in-game; value is speculative and largely driven by community demand.
- Why it’s high-risk: High price swings, low liquidity, and unpredictable future value.
- Examples: NFTs (artwork, PFPs), Metaverse tokens like MANA (Decentraland), SAND (Sandbox)
Further reading: Blockchain and the Digitization of Real World Assets: Reshaping the Financial Ecosystem
How to Buy Crypto: Pathways to Consider
There’s no single “right” way to get started with buying crypto—it depends on your goals, comfort level, and how hands-on you want to be. In this section, we break down the main options, from beginner-friendly platforms to more advanced decentralized tools, with a quick look at the relative risk and complexity of each method.
| Method | Description | Risk/Complexity |
|---|---|---|
Centralized Exchange (CEX) |
User-friendly platforms for buying/selling crypto. Examples: Coinbase, Kraken, Crypto.com. |
Low |
Brokerage Apps |
Apps that offer crypto purchases alongside stocks. Examples: Wealthsimple (Canada) and Robinhood (US). |
Low |
Peer-to-Peer (P2P) Platforms |
Direct transactions with other individuals. Platforms include Paxful and LocalBitcoins. |
Medium |
Decentralized Exchanges (DEX) |
Peer-to-peer crypto trading platforms. Often used by more experienced investors. Example: Uniswap. |
High |
Crypto Exchange Comparison (Including Fees, Staking Requirements, and Setup Costs)
Not all crypto exchanges are created equal. Some offer a smoother user experience, while others provide advanced tools, lower fees, or unique earning opportunities like staking. Here, we compare three well-known platforms: Coinbase, Kraken, and Crypto.com, across key factors that matter to both new and experienced users.
| Exchange | Pros | Cons | Fees (Trading/Other) | Staking/Setup Costs |
|---|---|---|---|---|
Coinbase |
|
|
Trading Fees: ~0.5% spread + flat fee (basic trades) Advanced Trading: 0.4% maker / 0.6% taker Deposit Fees: Free ACH; credit/debit card ~3.99% |
No account setup fees Optional staking (ETH, ADA, etc.) with no lockups required |
Kraken |
|
|
Trading Fees: 0.16% maker / 0.26% taker Deposit Fees: Free for bank transfers Withdrawal Fees: Low fixed fees, varies by coin |
No account setup fees Optional staking available with yields between 4%-20%, depending on the asset No token lockups required for basic staking |
Crypto.com |
|
|
Trading Fees: Up to 0.075% maker/taker with CRO stake Without CRO stake: 0.4% maker/taker Deposit Fees: Free bank transfers; credit/debit card ~2.99% |
No account setup fee Optional CRO staking: $400 USD CRO stake = 1% cashback $4,000+ USD CRO stake unlocks higher cashback and benefits Crypto Earn rates improve with CRO staking |
How to Sell & Spend Crypto
Once you hold crypto, the next question is: what can you do with it? Whether you’re looking to cash out, shop with crypto, or send it to someone else, there are multiple ways to turn your digital assets into real-world value. Explore your selling and spending options, from exchanges and payment cards to ATMs and peer-to-peer transactions.
| Action | How It Works |
|---|---|
Sell for Fiat (USD/CAD) |
Through centralized exchanges (Coinbase, Kraken, Crypto.com). Withdraw to a linked bank account. |
Spend Directly |
Via Crypto.com Visa Card or with merchants who accept cryptocurrencies like Bitcoin and Ethereum. |
Peer-to-Peer Sales |
Sell directly to other individuals through platforms such as LocalBitcoins and Paxful. |
ATMs |
Crypto ATMs allow conversion to cash in certain locations. |
Turning Crypto Back Into Fiat
At some point, you may want to convert your crypto assets back into traditional currency—whether to lock in gains, pay expenses, or simply reduce your exposure. This process is known as “off-ramping.”
The most straightforward method is to sell your crypto on a centralized exchange like Coinbase, Kraken, or Crypto.com. These platforms allow you to convert digital assets into fiat (such as USD or CAD) and withdraw the proceeds to your linked bank account. Transaction times and withdrawal fees vary, but the process is generally intuitive and well-documented.
If you’re not ready to fully exit the market, another option is to convert your crypto into stablecoins like USDC or USDT. This gives you a way to “park” your funds in a less volatile asset while deciding whether or when to re-enter the market. Stablecoins can often be held on the same platform or transferred easily between wallets.
At Troon, we help companies navigate this process with confidence. From handling large-volume conversions to simplifying multi-country operations, we make sure your off-ramping is compliant, secure, and efficient.
Businesses around the world are already preparing for a financial revolution powered by decentralized technologies and the ability to move value across borders is becoming essential.
Thinking beyond investing?
If your business is exploring how to accept crypto as payment, Troon can help you integrate solutions that are secure, compliant, and tailored to your operations.
Reporting Crypto for Taxes (US & Canada)
No matter where you live, crypto activity likely comes with tax responsibilities. While tax laws are still evolving, both the United States and Canada treat crypto as a taxable asset—meaning your transactions could trigger capital gains or business income.
United States
The IRS classifies cryptocurrency as property. This means that selling, trading, or spending crypto (even for goods and services) is considered a taxable event. Capital gains taxes apply based on how long you’ve held the asset and your overall income.
You’re required to report each taxable event on your annual tax return, and this includes crypto-to-crypto trades and purchases made using crypto.
Helpful tools for U.S. taxpayers:
Canada
The CRA treats cryptocurrency as a commodity. Profits made from selling, trading, or spending crypto may be taxed as either capital gains or business income, depending on the frequency and intent of your transactions. Occasional personal investments may fall under capital gains, while frequent trading or earning crypto as income could be considered business activity.
Canadian taxpayers must report the value of each transaction in CAD and maintain accurate records of all crypto-related activity.
Helpful tools for Canadian taxpayers:
Five Assets That Are Common Starting Points (Low to Medium Risk)
If you’re new to crypto and want a short list of assets to research first, these five are widely held, relatively established, and often recommended for beginners exploring their first investments. They span different use cases—from digital money to decentralized infrastructure.
Commonly Considered Assets:
Bitcoin (BTC)
The original cryptocurrency, known for its fixed supply and “digital gold” narrative.
Ethereum (ETH)
Powers most of the decentralized applications in Web3 and supports smart contracts.
USD Coin (USDC)
A stablecoin pegged to the U.S. dollar, used for lower-volatility holdings and transfers.
Solana (SOL)
A fast, scalable smart contract platform used in DeFi and NFTs.
Chainlink (LINK)
A key infrastructure project that provides real-world data (oracles) to blockchain applications.
Note: This list is for informational purposes only. As with any investment, do your own research and assess your risk tolerance before making a decision.
How to Explore Crypto: A Simple 5-Step Framework
If you’re new to crypto and wondering how to take your first steps without getting overwhelmed, you’re not alone. The good news is: you don’t have to dive in headfirst. This simple five-step framework offers a practical, measured approach to exploring the space.
1
Determine Your Investment Budget
- Before anything else, decide how much you’re willing to invest—and more importantly, how much you’re willing to lose. Crypto markets can be highly volatile, and even well-established assets can fluctuate significantly in value. Many investors start by allocating only a small percentage (e.g. 1–5%) of their total investment portfolio to crypto, treating it as a high-risk, high-reward asset class.
Tip: Define your risk tolerance in advance. Are you looking for long-term growth, or are you simply crypto-curious and experimenting with a minimal amount?
2
Select a Reputable Exchange
To buy and sell crypto, you’ll need to choose a secure and trustworthy exchange. Each platform has its strengths, so your choice may depend on your preferences around fees, ease of use, and available features.
| Preference | Exchange |
|---|---|
Simplified experience |
Coinbase |
Lower fees & robust security |
Kraken |
Mobile-first with rewards system |
Crypto.com |
Note: Start with a centralized exchange (CEX) for a smoother onboarding experience. These platforms also offer fiat on- and off-ramps, allowing you to connect a bank account and withdraw when needed.
3
Create and Verify Your Account
Once you’ve chosen an exchange, the next step is to create an account and complete basic onboarding.
- Go through the KYC (Know Your Customer) process, which may involve uploading ID and verifying your address.
- Link a bank account, debit card, or other preferred payment method.
- Enable two-factor authentication (2FA) for added security—this is essential.
Think of this as setting up your digital wallet and bank account in one. It’s worth taking a few extra minutes to get the security right.
4
Make an Initial Purchase
Now you’re ready to dip your toe in. Most people start with a small amount of a well-known asset—typically Bitcoin (BTC), Ethereum (ETH), or a stablecoin like USD Coin (USDC).
One widely used method is Dollar-Cost Averaging (DCA), where you invest a fixed amount at regular intervals (e.g. weekly or monthly). This helps mitigate the risk of entering the market during a price spike and smooths out the effects of volatility over time.
5
Decide on Custody and Storage
Where you store your crypto depends on your investment size, timeframe, and security needs.
- For small balances or short-term holding, leaving funds on the exchange may be fine—especially if the platform is reputable.
- For larger balances or long-term strategies, consider moving your assets to a private wallet:
Hot wallets
(like MetaMask or Trust Wallet) are connected to the internet and offer convenience.
Cold wallets
(like Ledger or Trezor) are hardware devices that store your crypto offline for maximum security.
Security rule of thumb: If you don’t control the private keys, you don’t fully control the crypto.
Optional Next Steps
If you’re comfortable with the basics, here are a few additional ideas to explore as you gain confidence:
Stake your assets: Some coins (like ETH, ADA, and SOL) offer passive income opportunities through staking.
Use tax-advantaged accounts: In Canada, certain crypto ETFs are eligible for RRSPs or TFSAs.
Track your transactions early: Even simple crypto activity should be recorded for tax purposes—especially when converting between assets or withdrawing fiat. Tools like Koinly or CoinTracker can automate this.
Crypto is just one part of a larger shift, emerging technologies like AI, blockchain, and decentralized finance are redefining what’s possible across industries.
Is Your Business Crypto Ready?
If you’re thinking about crypto as an individual, there’s a good chance your customers or competitors are too. Whether it’s payments, tokenized products, or a future-proof financial stack, having a crypto strategy isn’t just a trend anymore, it’s a smart move.
At Troon, we help businesses explore what crypto means for them—from integrating payments to building blockchain-based platforms.
Let’s talk about what’s possible for your business.
Connect with us to explore your strategy.
