Making sense of crypto in 2025

If you’re anything like me, the idea of “crypto” might have started as something you heard here and there. Something about Bitcoin, some people losing their savings, and a lot of buzzwords. Fast forward to 2025, and crypto is no longer just an internet thing, but it’s a something that is talked about everywhere. In the financial markets, social media platforms, or small talk with strangers we are trying to meet and learn about. Crypto is everywhere, Crypto.com even purchased the naming rights to the Staples Center in Los Angeles for $700 million back in 2021. So, if you’re still scratching your head, wondering what it all means, trust me, you’re not alone.

But here is the thing, you don’t have to be a tech nerd or an investor with millions to understand or even benefit from crypto and digital assets. Let’s break it down together.

What even is crypto?

At its core, crypto (or cryptocurrency) is just digital money. Think of it as the cousin of the dollar sitting in your bank account, but it only exist online and isn’t controlled by any government or central bank. Bitcoin, Ethereum, and others like them are the big players. But unlike your regular cash, crypto runs on a blockchain, which is a fancy word for a secure digital ledger that keeps track of transactions. The beauty of the blockchain? No middlemen, like banks, taking a cut of your money when you send it to someone. You’re in control.

Why are people so obsessed with it?

There are a few reasons:

Control over your money: Imagine a world where you don’t need to wait for a bank to approve your transfer or charge you fees. That’s the promise of crypto.
Potential for growth: Yes, crypto can be risky, but it has also been an avenue for people to grow their wealth. Some folks invested $100 in Bitcoin many years ago and now own enough to buy a car or even a house.
Financial inclusion: In places where banking systems are limited our unreliable, crypto is giving people access to financial tools for the first time.

But it’s not all sunshine and rainbows. There’s volatility in crypto. The prices (or value), whatever you want to call it, go up and down wildly. There are also scams, and to date, confusion about regulation.

Wild card of crypto

When most people think of crypto, their minds go straight to Bitcoin or Ethereum. But the world of crypto is much bigger than just Bitcoin and Ethereum. You’ve probably heard of coins like Dogecoin and Shiba Inu. They’re what the crypto world calls memecoins – cryptocurrencies born from internet jokes or memes. At first glance they might see like a joke themselves, but they’ve made waves in the financial world.

Memecoins are fungible digital assets that typically start as community-driven projects rather than with a serious technical purpose, meaning they often have no specific use case or underlying utility. For example, inspired by the Shiba Inu “Doge” meme, Dogecoin (DOGE) started as a joke but became widely recognized cryptocurrency and has been used for tipping and donations. There is also Shiba Inu (SHIB), dubbed a “Dogecoin killer,” this token also was created to capitalize on the Doge meme’s popularity. This month, Donald J. Trump himself announced the launch of his new memecoin, calling the token $Trump, selling it with the slogan, “Join the Trump Community. This is History in the Making!”. Make no mistake, memecoins are risky.

Here’s what sets them apart:

Hype-driven: Their value often depends on social media buzz or a tweet from someone like Elon Musk.
Volatile: Prices can skyrocket overnight or plummet just as fast.
Limited utility: Unlike Bitcoin and Ethereum, most memecoins don’t have significant technical features or widespread applications.

So, should you invest? Only if you’re okay with taking a gamble. Memecoins can be fun and even profitable during their hype peaks, but they’re highly speculative and not a reliable long-term investment. Think of them like buying a lottery ticket—exciting but uncertain. If you’re curious about memecoins, approach them with a lighthearted attitude and a small budget. They might not make you a millionaire, but they can be a fun way to dip your toes into crypto.

Digital assets beyond crypto

Beyond cryptocurrencies, there are also non-fungible assets in this space called NFTs (non-fungible tokens). In 2025, they’ve grown from overpriced monkey pictures to a legitimate way to prove ownership of everything from digital art to real estate. Imagine buying a piece of land, and the proof of ownership is tied to a digital token. That’s happening now. Companies like Propy are using NFTs to streamline real estate transactions. Artists are also leveraging NFTs to ensure they get royalties every time their digital work is resold.

Then there’s tokenized assets. These are real-world things (like gold, stocks, or even a share of a company) represented digitally on the blockchain. You don’t need to own an entire share of Apple anymore; you can own a fraction of one. Platforms like tZero lets you own fractional shares of real estate or high-value stocks, making investing more accessible for everyone.

Where does crypto fit in personal finance?

Here’s the truth, crypto isn’t a magic ticket to wealth. It’s a tool. And like any tool, you need to know how to use it. For most people, this means starting small and investing only what you’re willing to lose.

For me, for the past several year, I’ve decided to buy in $25 increments Dogecoin, XRP, and Bitcoin. To date, it’s not much and have made gains in those investments, but I wanted to learn by doing. I’ve watch prices swing wildly, and I’ll be honest, at one point, I though I’d made a huge mistake. But over time, I got used to the ups and downs. The point? It taught me patience, how to research, and to keep my expectations realistic.

Crypto can also help you diversify your investments. You don’t have to go all in, but having a small percentage of your portfolio in digital assets can be a smart move.

Tips for navigating crypto in 2025

Start small: Don’t bet all your money. Begin with an amount you’re comfortable losing, even if it’s $10.
Educate yourself: Watch YouTube videos, read blogs, and follow trustworthy sources. The more you know, the less scary it feels, and the more risky digital assets you can avoid.
Use secure platforms: Not all crypto exchanges are created equal. Stick with reputable ones like Coinbase or Binance.
Beware of scams: If something sounds too good to be true, like guaranteed profits, it probably is a scam.
Think long term: Crypto isn’t a get-rich-quick scheme. Treat it like any other investment and give it time.

Final thoughts

Whether or not you dive into crypto, understanding it is quite important. It’s like learning to use the internet in the ‘90s or learning how to invest in financial markets. it might seem optional now, but it’ll soon be part of daily life. From paying bills to earning income to saving for retirement, digital assets are shaping the way we manage money. And here’s the kicker: it’s okay to feel intimidated. I still find myself Googling terms, asking dumb questions, and second-guessing decisions. The important thing is to start. Learn, grow, and take small steps forward.

Crypto and digital assets aren’t just for tech nerds, tech bros, and billionaires anymore. They’re for people like you and me, folks trying to save a little more, invest smarter, and keep up with a world that’s moving faster than ever. So, take a deep breath, dip your toes in, and remember, you don’t have to understand everything to get started. You just need curiosity and a willingness to learn.