Over-the-counter derivatives are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone and may result in you losing substantially more than your initial investment. You do not own, or have any rights to, the underlying assets. You should only trade with money you can afford to lose.

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Cryptocurrency Trading Fundamentals

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Course overview

1. What are cryptocurrencies?2. What is cryptocurrency trading?3. Self-custody versus custodial wallets4. Crypto market cycles5. Analysing altcoin fundamentals6. Advantages of cryptocurrency trading with Axi7. Conclusion

4. Crypto market cycles

Understanding market cycles, among other things, can be beneficial for crypto investors. Crypto is a volatile emerging market, so managing risk is crucial.


In any market, trading with the trend can be a more successful strategy in the long run, but identifying trends accurately is challenging.


The Bitcoin cycle is punctuated by halving events, which roughly every four years reduce the block reward for miners. In April 2024, the reward went down to 3.125 BTC from its original 50 BTC in 2009.


Altcoin season is a period in the cryptocurrency market when altcoins experience significant price increases relative to Bitcoin. Investors rotate their holdings, anticipating higher returns. Altcoin seasons are known for historical volatility, unpredictable outcomes, and potential bubbles and crashes fuelled by hype and speculation.

Quiz

1/1

What is a Bitcoin halving event?

A) A period of high volatility in the Bitcoin market. 

B) A reduction in the number of Bitcoin that are mined.

C) A significant increase in the price of Bitcoin.

D) A technical upgrade to the Bitcoin blockchain.

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