I’m interested in trading crypto, is there anything else I need to know?

Category: crypto-faq

Trading cryptocurrencies is much like trading any other asset class, however, there are some unique features that beginners should be aware of:

  • Crypto trades 24/7. It’s a market that never closes, so you can trade it when all other markets are closed.

The tight correlation between crypto and the US stock market in recent years, means that at times when US stock markets are closed, some investors use crypto as a proxy to express positional views related to how they believe US stocks will open once trading resumes.

  • Secondly, crypto is by far the most volatile asset class we have at the moment.

Why is this important? Because crypto’s sometimes incredible volatility acts as a natural kind of leverage. For this reason, using leverage to trade crypto is an unbelievably risky proposition.

  • Finally, since the most liquid crypto markets are priced in USD, crypto traders must pay extra attention to the fate of the US dollar. This is, of course, true of all commodities that are priced in US dollars.