A crypto trading competition is an event, usually hosted by major exchanges, where a crypto trader could win prizes when that trader earns the highest profit among other participants within the competition period.
Basically, a crypto exchange will give the same amount of crypto to all the participants. But take note, these crypto are intended to be used for the event only and cannot be withdrawn or converted to local fiat.
The event has a time limit, usually a week, and participants should trade as much as they want to try to make more profit than other participants. After the time limit, the participant who made the highest profit wins.
Getting Started: How to Participate in Crypto Trading Competitions
Some crypto trading competitions are free to join, while others may require an entry fee or a minimum deposit.
Some of the known exchanges that have it are Binance, where you can win prizes such as BNB, NFTs, or physical items; Bybit, where you can win prizes such as USDT, BTC, or ETH; CEX.io, where you can win up to $5,000; PrimeXBT, with a prize pool of $100,000; and even GCash’s GCrypto, with a prize pool of ₱80,000, so choose wisely which exchange you would join.
After choosing the right exchange for you, go to its trading competition section and fill-up the information needed. Make sure to read the rules and terms of the event and check for any restrictions, such as trading pairs, leverage, order types, or trading strategies that you can use. Most exchanges require your account to be fully verified before joining.
Strategies for Success: Tips and Tricks for Crypto Trading Competitions
Once you receive the crypto that should be used in the competition, you may start trading according to your comfort. Stay away from pressuring yourself. You could use the exchange’s available tools, such as charts and market analysis, to create your trading decision.
If you are just a new trader in the space, you could also enhance your trading skills and knowledge by analyzing market trends, testing different trading strategies, and gaining experience without the risk of losing real money.
You may also want to observe the strategies of some of the most skilled and experienced traders in the industry. Study their approaches and adapt them to your own trading style.
Lastly, since competitions like this often attract the most skilled and experienced traders, make sure to establish connections with them.
Playing Safe: Understanding the Risks of Crypto Trading Competitions
While these competitions could be fun and exciting as they let you experience the thrill of the game, they can still be risky as crypto trading tournaments somehow involve a lot of luck and skill.
If you join competitions that require an entry fee to be able to qualify, and you made bad trades due to being inexperienced and unknowledgeable enough with the crypto you are trading, you could lose your money. So make sure to study the market movement of the crypto that the exchange will use as the tournament’s token.
You might also face some technical problems or unfair rules that affect your performance, which could also be the reason to lose your money. So, you should always be careful and responsible when you join these competitions.
Lastly, set realistic goals and strategies to make sure that you do not waste your time and resources. It could be sad if your trading competition performance resulted in a loss than a profit. So, clarify your goals, did you join to learn some trading strategies or just to enjoy?
In summary, joining crypto trading competitions just not make you earn free crypto, but you could also earn some knowledge, learn new trading strategies, and expand your connections. It is an opportunity that truly accelerates your crypto portfolio and personal growth as a crypto trader, which will soon open further opportunities in this industry.
This article is published on BitPinas: How to Earn Free Crypto Through Trading Competitions in 2023
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.