- It could be argued that you do not have to know absolutely everything to begin or master the art of trading cryptocurrency
- However, newcomers are advised to have at least some fundamental knowledge of the crypto-asset market to navigate it safely
With the growing interest in cryptocurrency trading, you might feel the urge to hop in on the fun as soon as possible. However, it can be unwise to enter this field without performing your due diligence because cryptocurrency trading involves many new concepts and terms and is an incredibly volatile asset. You have come to the right place if you find yourself wondering how much of the cryptocurrency space you need to understand before you start trading.
It could be argued that you do not have to know absolutely everything to begin or master the art of trading cryptocurrency. For example, it is probably not all that pertinent that a trader know the history and mystery surrounding Satoshi Nakamoto (the moniker used by the inventor/s of Bitcoin). Similarly, is it not necessary to have an in-depth knowledge about the algorithms that govern the different blockchains. However, newcomers are advised to have at least some fundamental knowledge of the crypto-asset market to navigate it safely. Below is a list of topics that a trader should be cognizant of if they want to maintain a long career as a crypto trader.
What you should know:
- The history of cryptocurrency.
- How cryptocurrency trading can differ from forex trading.
- The trading conditions for cryptocurrency CFDs.
- The use case of a cryptocurrency you want to trade.
- The fundamental events that could affect the price of a cryptocurrency.
- Where to get breaking news concerning cryptocurrencies.
- Who are the media personalities and organisations that can drive price action.
In addition to the above, you should be cognizant of the risk management strategies that apply to the trading of all instruments, and appropriately apply them to your crypto trading.