The usage of demo account in learning how to trade cryptocurrency is a very good development. It is also recommended to all the newcommers in cryptocurrency trading to use the demo account to build their confidence and learn the basics of trading before creating a real account. However, over dependent on the demo account can also affect the learner. There's a clear difference between the demonstration account and real account in terms of emotional and financial management. When there's something to lose, anxiety rises. So, while using the demo account, you can also spear some bucks to try the real version.
Yes, it's sometimes needed, but for some reason lately I haven't seen a demo account feature for some of my favorite exchanges...in fact, I've found demo accounts more often for several platforms, such as gambling platforms or casinos.
In fact, if we can also learn to demo by reducing the amount of money we use for trading, it will actually feel more real but only involves a small amount of emotion. For example, with $5 or $10... from this trading activity we will be able to find out our potential on a small scale, whereas if we already have great confidence we can increase the amount of our trading money gradually.
So, technically and mechanically, a trader will certainly understand the risks gradually. That being said, this may be why demo accounts are not available for some exchanges.