ā Crypto Trading Mastery
Day 2 of 33
Bitcoin, Ethereum & the Majors
Bitcoin ā Digital Gold
Bitcoin was created in 2009 by the pseudonymous Satoshi Nakamoto. It's the original cryptocurrency and still the benchmark ā when BTC moves, everything else follows.
Key properties:
⢠Fixed supply: only 21 million BTC will ever exist
⢠Decentralised: no company, government, or person controls it
⢠Store of value: increasingly treated like digital gold by institutions
⢠Halving cycles: every ~4 years, the mining reward halves. Historically this triggers bull markets 12-18 months later.
For trading: BTC is the most liquid, has the tightest spreads, and is least susceptible to manipulation. Start your trading here.
Ethereum ā The Smart Contract Platform
Ethereum is programmable money. It's not just a currency ā it's a platform for decentralised applications (dApps), DeFi protocols, NFTs, and more.
Key properties:
⢠Smart contracts: code that executes automatically when conditions are met
⢠ETH is 'gas': you pay ETH to use the network
⢠Deflationary mechanism: since EIP-1559, ETH is burned with each transaction
⢠Staking: ETH holders can earn yield by staking (~3-4% APR)
For trading: ETH often lags BTC in bull markets then catches up fast. It's the second most liquid pair and a great trading vehicle.
Bitcoin Dominance ā Your Market Compass
BTC Dominance (BTC.D on TradingView) measures Bitcoin's share of total crypto market cap.
How to read it:
⢠BTC.D rising = money flowing INTO Bitcoin, often out of altcoins. Risk-off signal.
⢠BTC.D falling = money flowing OUT of Bitcoin into altcoins. Risk-on. This is when altcoins outperform.
A typical bull market cycle:
1. BTC rallies, BTC.D rises
2. ETH catches up, BTC.D starts falling
3. Altcoin season ā small caps explode
4. Everything dumps, BTC.D rises again
Watch BTC.D daily. It tells you where capital is flowing.
š” Pro Tip
Before trading any altcoin, know where BTC.D is trending. Trading alts when BTC.D is rising is swimming against the current.