What Are Crypto Trading Tournaments?
The Crypto industry has always been a fiercely competitive one, with several platforms and service providers trying to gather as many customers as possible. The problem isn’t a lack of customers or innovations, but rather that the crypto space already offers even passive users so many options to earn money.
From yield farming to mining, there is an abundance of innovations that profit the crypto user; crypto platforms and service providers continue to find new ways to make their customers happier and wealthier. Especially when they use crypto ecosystems is where trading tournaments come in.
Trading Tournaments are precisely what they sound like, exclusive trading events prepared by crypto platforms to inspire users new and old to win spectacular prizes like tokens and hardware like phones. These competitions come with unique conditions and varying forms, designed to hone the user’s skills and lead them to new trading strategies and tactics.
Benefits of being the apex predator of a crypto trading jungle
Several platforms and crypto exchanges have similar contests planned and are beginning to focus on these tournaments that benefit both the average trader and the crypto space, providing incentive and innovative trading experiences.
The potential rewards to trading tournaments are more than reasonable. Prizes can be earned by individuals or shared among teams, ranging from coin rewards to hardware rewards like merch and even shares of pooled competition funds.
The trader also stands to gain significantly in the area of expertise. By participating in competitive trading, they learn to adapt to new strategies and ways of thinking. The experience acquired can help their traditional trading activities. Some more recent lucrative tournaments are discussed below
- ByBit, Bigger is better:
Bybit is a crypto platform launched in 2018 and is rising rapidly to the top. Earlier in the year, they announced they would hold a tournament this April. The trading competition would run for seven consecutive days every three weeks, with winners gaining access to a weekly prize pool ranked by profit and loss. However, a participant must fulfill the trading volume requirement before the competition ends to become a winner.
Starting from April 2nd and running in series till July 2nd, each series has its registration period to help new investors and traders join up whenever they feel ready. Registration commences seven days before starting each series and goes on till two days before the end of the current series. Each interested participant must have an existing Bybit account with a Net Equity of 0.01 Bitcoin or any blockchain equivalent. And any currency pair offered on the ByBit network can be traded; there are no restrictions on that.
- KuCoin BTMX Classic Grid Trading Competition, take a dip in the pool:
KuCoin is a crypto exchange platform that recently released a native KuCoin Trading Bot that allows users to access various features, especially the titular trading bot. Trading bots are automated programs that users can create and configure using KuCoin’s platform, to earn passive income from trading.
To incentivize users, they announced the KuCoin BTMX classic grid trading competition in partnership with AscendEX (formerly BitMax) that gave users of the KuCoin Trading Bots who traded BTMX using the traditional grid trading method access to a prize pool of 5000 BTMX (about $15,000). The competition started April 19th, 2021, and ran till April 25th, 2021, and it is divided into three activities; all three carry different prizes and conditions and are to be judged at the end of each day.
- Binance, Trade the money of tomorrow:
Binance recurrently holds a Binance Futures Trading Tournament, with an ROI pool that sometimes wades into the millions. Binance’s massive customer base supports the contest, and the trading tournament is unarguably one of the largest in the world.
Binance futures are a part of the Binance exchange, the futures contract allowing investors to place buy or sell orders on cryptocurrencies to be executed later.
The features of the trading contest include a doubling of the ROI from contest contracts when the final ROI is being calculated. And although the number of contestants decides the size of the prize and bonus pools, the pool max is $1.5 million.
- Phemex, Battle for glory in the Trader’s Arena:
The Phemex crypto ecosystem is a revolutionary platform started in 2019; the Singapore-based company, Phemex Financial, provides a very user-friendly environment with low-cost fees and no KYC model. However, Phemex also has a Phemex Crypto Trading Competition with a prize pool of about 50 Bitcoin split 78% for teams and 22% for individuals.
The Phemex Trading competition follows general tournament rules; though there are unique conditions, participation requires at least 0.005 BTC in a Phemex trading account. Teams must have at least ten members, and winners will be determined by average ROI and PnL. However, API trading, batch account registration, reverse transactions amongst teammates, amongst several others, are banned.
- OKEx, expansions East and West:
OKEx is a leading cryptocurrency derivative exchange platform; the Seychelles-based crypto giant was founded in 2017 and had a long and decorated history of providing reliable spot and derivative trading. A feature they will be bringing to Pakistan soon, heralded by the #OKExSalamPakistan trading contest.
The #OKExSalamPakistan trading competition is designed to incentivize Pakistanis to join the OKEx platform, with a 5000 USDT prize pool at stake. The tournament started on April 15th, 2021, and will end on May 12th of the same year. This competition isn’t OKEx’s first rodeo. The platform has held several tournaments in the past, including a 150,000 USDT trading competition designed to incentivize users to their new Unified Account feature in December 2020.
These are just a few of the lucrative opportunities investors can get behind; with nearly every crypto platform offering their version of trading competitions, earning money in the crypto space these days is akin to shooting fish in a barrel.
However, traders must remember that traditional trading is nothing like tournament trading, and the strategies and conditions innate to one do not always resemble the other. So the knowledge and techniques gained from competitive trading must be adapted for traditional trading.
A Beautiful Strategy Shall Lead To Handsome Results.
Crypto trading can be an exhilarating and fruitful pursuit for those willing to invest. However, participants must remember that trading for profit and trading in tournaments are two very different scenarios. The requirements and conditions governing trading competitions are very different from normal market circumstances. Participants need new strategies and tricks if they intend to get ahead and win the match.
This list of requirements and strategies that are to be considered for success are as follows.
- Participants must remember the two most vital factors in tournaments: time and market condition, maximizing profit during the time they have available instead of waiting for favorable market conditions.
- In tournaments, the conditions for winning often involve increasing high ROI, amassing substantial profit compared to their loss. Participants who wish to win must have high enough leverage because they have to take higher risks if they hope to win.
- ByBit’s tournament shall not allow a participant to lose their entire portfolio; instead, a specific amount traded during the contest is announced before registration.
- It is important to remember that the tournaments are impersonal affairs. Participants must master their emotions, and it is essential to remain calm during gain or loss. Emotion is often the reason why traders lose money; getting excited or angry over trading almost always leads to defeat.
- Teamwork and support are often overlooked, despite their strong effect on a winning strategy. An excellent support system, like trading tips from news sites and collaboration, sharing information amongst friends, is invaluable to the winning participants.
Final thoughts on crypto trading tournaments
Trading, though exciting, can carry significant risk to the unwary and ignorant investor, which is why crypto platforms like Bybit offer learning opportunities to investors, especially alongside the launch of their tournaments, in the hopes that it’ll motivate investors towards trading on their platform. Contests like these serve as a great proving ground for fledgling investors and a source of profit and reward for established traders.
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