Crypto trading competitions are becoming increasingly popular to test your trading skills and improve your crypto knowledge in a fun and exciting environment.
Trading competitions are conducted through derivative exchanges such as Phemex or specified trading platforms, like League of Traders. The competitions offer traders a variety of ways to Even better, there are numerous ways to earn money. They offer grand prizes that can range anywhere from $100 USD to 100 BTC (~$120,000,000). Trading Competitions also usually offer low stakes bonuses such as a $10 USD Friend Invitation Bonus or Daily Prize Draws. Because of these bonuses, along with the opportunity to gain valuable experience against peers, many traders see competitions as a way to win no matter what.
Are you a novice or experienced trader who has considered joining a crypto trading competition but don’t know where to start? Have you heard about the many rewards that come with crypto competitions but are unsure of how to compete? Well, you came to the right place.
The question is not if you should compete. The real question is: How should you compete? Due to time constraints and level of competition, trading competitions require a different approach from what you would apply to your everyday portfolio. The following tips will help you begin your competitive crypto trading journey.
Tip #1 – Manage Your Time Wisely and Evaluate Market Conditions
Proper time management is vital for successful participation in a trading competition. Since trading competitions are only open for a short period of time, it is important to acknowledge the time constraints when crafting your strategy. Maximize trading activity during the competition period and make moves based on the quickly changing market.
This contrasts to regular day to day trading strategies. For example, a common strategy for traders is to wait for when clear trends are visible in the market. However, during competitions traders should employ and test multiple strategies simultaneously to yield the most profits.
In general, it is best to trade with multiple strategies and to trade in smaller time scales rather than waiting for a major trend to emerge.
Tip #2 – Increase Your Risk Level for Short Run Profits
One basic economic principle to remember when creating your competitive strategy is that higher risk yields higher returns. In regular trading, traders usually opt for a lower risk strategy based on long-term market conditions. Their technique is to profit from sustainable growth while minimizing losses.
The goal in trading competitions is to achieve the highest return during the competition period, which is often around 20 to 30 days. In order to achieve this, a trader must be comfortable with riskier moves and accept the chance of increased losses.
If the increased risk is something that worries you, remember that in trading competitions you do not need to risk your entire portfolio. Instead, consider allocating only a small portion of your portfolio to the competition. This will make you eligible for prizes and bonuses while minimizing your overall risk.
Tip #3 – Control Your Emotions, Don’t Let Your Emotions Control You
This is a rule that should apply to your overall trading strategy, not just when entering a trading competition. It is important to approach investing from an analytical point of view and trust your analysis rather than letting your emotions guide your strategy.
It is important to remember that the market is very volatile. Just because a trader begins the competition at the top of the leaderboard does not mean that they cannot be in last place by the end, and vice versa. It is common for traders in a competition to get nervous by watching their competitors’ success and to make rash decisions that hurt their ranking.
Remember to keep a level head and focus on your own strategies rather than panicking over what others are doing. If a strategy is working, continue it. If it is not, then reevaluate but do not change strategies solely based on other competitors. The most successful competitors understand how to keep calm and stay collected through a competition, even when it is time to slow down and take safer positions.
Tip #4 – Don’t be Afraid to Watch and Copy Other Traders
This is not to be confused with Tip #3. By all means, as it was stated earlier, if your strategy is working then continue it. However, if it is time to change strategies or you are trying to pick an initial strategy, don’t be afraid to look to the tactics of experienced traders.
Copy trading is an important tool that was created for beginners to leverage the experience of wiser traders to their own benefit. League of Traders, who offers crypto trading competitions, created its platform to service the needs of beginners and advanced traders alike. They believe that novice traders can shorten the learning curve by looking to their peers. To assist this, they employ powerful copy trading options that allow traders to copy the trades of others with just the click of the button.
However, it is important to use this feature with caution. Before copy trading from a specific trader make sure that their portfolio is similar to your own and that they are engaging in a similar trading strategy.
Copy trading can be used in competitions as a way of gaining experience but should not be your primary method for increasing profits.
Tip #5 – Analyze Performance and Adjust Your Strategy to Current Conditions
Trading competitions require a concentrated and active strategy of trading. Passive trading will not be beneficial in increasing your ROI in a short period of time. Instead, to be successful in competitive trading, traders must watch the market closely and continuously analyze performance.
It is important to stress once more, trading competitions are not like regular trading. Be sure to employ different strategies. Approach the competition with more intensity and attention than you would for regular trading. Remember that your experience in trading competitions should be treated as separate from other trading methods.
Don’t rely completely on the skills that you have gained through regular trading, be reactive to short-term risky endeavors that you would normally not act on. Most importantly, be confident in your instincts.
If you think you’re ready to put your skills to the test, check out League of Traders. They offer monthly trading competitions that you can enter to both increases your skills and win big. Good luck traders!
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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.