Career Definition of a Cryptocurrency Analyst
In general, a cryptocurrency analyst is responsible for analyzing and predicting trends, pricing, demand, and trading volumes of any number of cryptocurrencies currently available. This may entail analyzing the cryptocurrency market as a whole or analyzing specific currencies. The cryptocurrency biome continues to grow rapidly, as individuals and companies look to profit from the rise in popularity cryptocurrency has gained over the past several years.
A career in cryptocurrency could involve working for a more traditional financial institution as part of a cryptocurrency division, for example, or at a smaller start-up firm. An analyst may be responsible for directing a firm's investment of capital or its client facing outlooks on the cryptocurrency markets.
|Educational Requirements||Bachelor's degree for entry level analyst positions; master's level education for career advancement and higher salaried positions|
|Job Skills||Research and critical-thinking skills, math skills, teamwork and presentation skills, applicable knowledge of cryptocurrencies and their various markets|
|Median Salary (2019)*||$81,590 per year (financial analysts)|
|Job Outlook (2019-2029)*||5% (financial analysts)|
Source: *U.S. Bureau of Labor & Statistics
Most financial analyst positions require a minimum of a bachelor's degree. Some financial institutions prefer to hire analysts with a master's degree; however, junior analyst positions are not uncommon. Due to the specialized nature of cryptocurrency analysis, knowledge and expertise in this field will primarily be self-taught or gained from experience in the cryptocurrency markets themselves.
A bachelor's degree in finance would be a logical start for folks interested in pursuing a career in cryptocurrency; an understanding of supply and demand, primary and secondary markets, as well as economics in general will be applicable to even the newest financial trends within cryptocurrency.
Given the relatively unregulated nature of the cryptocurrency universe, there is a lack of widely recognized licensures or training courses comparable to those found in more traditional finance (e.g. the licenses offered by the Financial Industry Regulatory Authority (FINRA), which oversees and enforces securities regulations).
That said, there are a small number of institutions beginning to offer training and certifications in blockchain, Bitcoin, and other cryptocurrency topics. For instance, the Crypto Currency Certification Consortium offers such certifications as Certified Bitcoin Professional and Certified Ethereum Developer. Whether these types of certifications will be widely recognized and accepted, especially within the traditional finance industry, remains to be seen.
A cryptocurrency analyst will need to have excellent research and analytical skills, as one of the main functions of the job is collecting data and creating usable recommendations. Skills in mathematics, such as the ability to chart data, plot graphs, and calculate price points, are also required. It is likely an analyst will work as part of a team, so communication skills are a big plus, as well as being able to concisely and accurately present findings, either directly to other individuals or within a document or deck.
Career Outlook & Salary
Much like cryptocurrency itself, there are a lot of variables and unknowns in the world of cryptocurrency careers. Individuals wishing to pursue a career in cryptocurrency may be well advised to take a measured approach and pursue transferable knowledge and expertise.
That said, the fledgling industry is recognized as having a great deal of potential growth, and analysts able to accurately provide insight, information, and analysis could be in high demand, both by individual and institutional investors.
The median salary of financial analysts was $81,590 as of May 2019, according to the U.S. Bureau of Labor Statistics. This career path is expected to grow faster than average, with a 5% growth projected for financial analysts during the 2019-2029 decade.