Crypto Markets Overview

Crypto markets share DNA with traditional markets but have unique characteristics every trader needs to understand.

Key Differences from TradFi

| Feature | Traditional | Crypto | |---------|------------|--------| | Hours | Market hours (9:30-4 EST) | 24/7/365 | | Settlement | T+2 days | Instant (on-chain) | | Custody | Broker holds | You can self-custody | | Volatility | 1-3% daily | 5-20%+ daily | | Listing | Regulated process | Permissionless (DEXs) |

Market Types

Spot Markets

Buy the actual asset at the current price. You own it.

• CEXs: Binance, Coinbase, Kraken
• DEXs: Uniswap, Jupiter, Raydium

Futures / Perpetuals

Contracts that track an asset's price with leverage. You don't own the underlying asset.

• Perpetual contracts (no expiry) are the most traded instrument in crypto
• Up to 100x leverage available (dangerous for beginners)

Options

Right (not obligation) to buy/sell at a specific price. Growing market in crypto (Deribit, Aevo).

Market Cycles

Crypto follows pronounced boom-bust cycles, often tied to Bitcoin halving events (every ~4 years):

1. Accumulation — Bear market bottom. Smart money buys.
2. Markup — Bull market begins. Prices rise steadily.
3. Distribution — Euphoria. Everyone's a genius. Smart money sells.
4. Markdown — Crash. 70-90% drawdowns common for altcoins.

Understanding which phase you're in shapes everything: position sizes, timeframes, and risk tolerance.

Key Takeaway

Crypto is traditional trading on hard mode — more volatility, more opportunity, more risk. The skills from this academy apply directly, but the stakes are amplified.