1. What Is Cryptocurrency? (Major vs Altcoins)
Cryptocurrency is digital money secured by cryptography and decentralised networks. Unlike Forex, crypto is not issued by governments, but operates on blockchain technology.
Every crypto trade involves buying one token with another, often paired with USD, stablecoins, or BTC/ETH.
Major Cryptocurrencies
- BTC (Bitcoin)
- ETH (Ethereum)
- USDT (Tether)
These coins tend to have higher liquidity and are widely accepted on exchanges.
Altcoins / Smaller Tokens
- ADA, SOL, DOT, DOGE, etc.
- Lower liquidity, more volatile, higher spreads
Understanding which coins dominate volume is essential because the market moves in smaller tokens that often follow BTC/ETH trends.
2. How the Crypto Market Works (Spot, Futures, Exchanges)
Crypto is unique because it trades 24/7, globally, on centralised and decentralised exchanges.
Popular Exchanges:
- Binance, Coinbase, Kraken, Bitfinex (spot & derivatives)
Trading instruments:
- Spot: direct ownership of crypto
- Futures / Perpetuals: leveraged contracts, often without delivery
High activity periods often follow macro or crypto-specific news (e.g., regulatory announcements, network upgrades).
3. What Fundamentals Move Crypto Markets?
Crypto markets respond to a mix of factors that are often unstable and infrequent, making it much harder to place your finger on.
Here are some fundamentals to pay attention to:
3.1 News & Sentiment
- The crypto market is solely driven by news and sentiment, as crypto has no intrinsic value.
- Government bans/approvals
- Tax policy changes
- DeFi / CEX legal actions
eg. Trump Names Cryptocurrencies in U.S. Strategic Reserve
BTC/USD
2nd March 2025 – 1-hour TF
Before: Before DT announcement
eg. Trump Names Cryptocurrencies in U.S. Strategic Reserve
BTC/USD
2nd March 2025 – 1-hour TF
Before: After DT announcement
3.2 Interest Rate Decisions
The reason is the indirect impact it has on crypto. The stock markets are closely tied to the crypto industry, and when interest rates are hiked, stocks usually fall.
- The stock market in general
- We have already covered interest rates due to the stock market. However, the market in general has a powerful impact on the crypto market.
eg. 20th November 2025 – 1 hour TF
Nasdaq100
eg. 20th November 2025 – 1 hour TF
BTC/USD
3.3 Supply & Demand
This is important in the sense that many cryptocurrencies will have a total supply and a max supply limit. As a trader, you will want to understand the feasibility of the price and the supply. For example, if a coin’s max supply is 10 billion, then the likelihood that the coin will reach $10 may not be feasible.
Unlocking period = more supply
eg. Aptos/USD
12th Jan 2025 – 1-hour TF
Supply increase: ~$104.2M
Before: Before/After unlocking period
14.2% drop in price
