Gamification Transforming The Crypto Trading Landscape

As much as the crypto market has evolved over the past decade, it is still fair to say that the industry is riddled with issues of heavy volatility. This has made it harder for traders, especially those from the traditional finance (Trad- Fi) realm, to transition into this space seamlessly. This is because a lot of the conventional strategies that work well in relation to stocks, ETFs, bonds, etc. fail when translated and used in the context of cryptocurrencies.

For example, earlier in August 2023, a digital asset trader was faced with a massive $55 million loss when the market swung in a bearish direction overnight. Moreover, a recent report by social trading and multi-asset investment platform eToro notes that a whopping 90% of all crypto traders incur losses — estimated to be at 35% of their portfolios — within just a year of entering the market. The reasons described for this include poor education, the use of erroneous trading systems/trading ethics, and weak investor psychology.

Education is the key

Even though crypto is now a trillion-dollar industry, it is still in its nascency when compared to the fiat ecosystem. In fact, many investors/traders still, to this very day, look at digital assets simply as a means of making a quick buck, thus failing to learn about the industry in any sort of detailed way.

For example, a project called Safuu, which offered returns worth 3,00,000%, was able to lure in thousands and thousands of investors, only for them to be duped within a matter of months. This incident, along with several others, clearly showcases a lack of knowledge on behalf of investors, and therefore, it is imperative that these individuals educate themselves immediately. One way of doing this is by using ‘gamification’ tools that allow traders to learn about the market in a manner that is not only engaging and financially safe but also incentivized.

In this regard, Banksters is an EduTech simulator that allows players to immerse themselves in a gamified trading environment where they have to adapt to dynamic market conditions, including heavy day-to-day volatility, short-term pumps, rug pulls, etc. To deal with this uncertainty, users are required to employ smart strategic decisions that can only be implemented once they learn about key financial concepts and gain more financial literacy.

To elaborate, Banksters features many core gameplay elements that pervade the crypto industry. One such concept is mining, wherein individuals use their personal computers, and mining rigs to acquire tokens. Secondly, the game features ‘investment uns,’ i.e. simulated trading experiences (using real-life data) requiring investors to make decisions on their feet so as to not only minimize their losses — during pumps and dumps, liquidation runs, and so on — but also maximize their gains during periods of heavy market turmoil.

In brief, the project offers an immersive educational experience where users can actively influence the outcome of their investments while reaping real-world rewards and incentives in the process.

Bridging the necessary gaps is a must

As more and more investors continue to enter the crypto fray, it is important that the education gap currently permeating the sector be bridged so that a more stable ecosystem can emerge, one where investors are well-informed about the technology they are putting their money into as well as equipped to deal with the many financial curveballs that may be thrown at them.

According to a recent study, the aforementioned lack of education is the number one reason why amateur traders lose their hard-earned money and subsequently drift away from digital assets permanently. Not only that, it is also the reason why many investors fall prey to obvious scams that can otherwise be avoided quite easily.

Thus, as the world increasingly gravitates toward the use of decentralized finance (DeFi) tools, as highlighted by the industry’s rapid financial growth over the last 72 months alone, it stands to reason that offerings like Banksters can help crypto enthusiasts/traders learn the ropes of the market as well as the technology pervading it (i.e. blockchain) in a fun, meaningful and engaging way.