Trade Crypto

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 form 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 movements of the US dollar. This is also true of all commodities priced in US dollars.

Rather than thinking of decentralization as being opposed to centralization, or bitcoin and crypto being against our global institutions, it may be helpful to think of them as a counterbalance.

When you look at crypto dispassionately, it’s simply an attempt to prevent power from concentrating in fewer and fewer hands, often in the form of unaccountable (and unelected) organizations that have come to hold an incredible amount of power and influence.

The network is entirely permissionless. Anybody can participate, either as a miner, or as an account holder, without needing to ask, undergo a credit check, or even reveal their identity. The complex sets of rules that govern how bitcoins are mined and distributed ensure that it’s incredibly costly to cheat the system because the cost of cheating is far greater than the cost of playing fair.

The point of a permissionless network is that in a world where you can have your accounts frozen, nobody can prevent you from accessing them. On a global scale, this means that bitcoin can fill the role of a truly global asset, that no single country can control.