Newbies should not start trading right away.

In coming to crypto, one must first learn how to secure their wallets and keeping their coins secure. This will prevent a lot of problems in later on when they are actively trading.

Once that is done, they should start with reading charts and learning how market movements occur and see if they are able to predict movements. This is where dummy trading comes into play like some other members have suggested. Without having done that for at least half a year one can end up making the most horrible mistakes that every newbie does in the real field. If you make those mistakes on paper, you will learn quickly.

Capital is in my opinion not a important constraint. If you are a bitcoin trader, your capital does not change much. It starts making sense to allocate capital only when you are into shitcoin trading and newbies should defenitely not do that.