Those who follow the market closely know that there are various ways to earn crypto other than investing or trading. You can also participate in staking, mining or lending to earn crypto. Further, you can also sign up for airdrops, use faucets or simply learn about the different web3 projects to earn rewards in crypto or fiat.
Similarly, another terrific way of earning digital assets is by participating in a crypto trading contest. These online competitions provide investors and traders with handsome rewards. They also allow you to better your trading strategies and learn new ones too. But what is a crypto trading contest and how does it work? Read on to find out!
Crypto trading contests: What are they?
A crypto trading contest is a simple online competition that pits traders against each other to see who can earn the most profits in a given timeframe. Several popular crypto exchange platforms such as Phemex, Binance, Coinbase, and Kucoin hold such trading competitions now and then. It is a great way for these exchanges to incentivise their loyal users and keep them engaged and motivated at the same time.
What are the various types of crypto trading contests?
Crypto trading contests can come in several types and forms. Many popular crypto exchanges such as Binance or Coinbase hold trading contests that can either last for 24 hours or run for a couple of weeks.
Some of these exchanges also offer a choice between demo and live trading contests. This is because not everyone owns the amount of crypto required to enter such contests. Therefore, a demo contest enables these users to participate for free, gain trading experience and develop an understanding of the competitive ecosystem. On the other hand, live trading contests mostly deal with experienced traders who are willing to put their crypto on the line to win the grand prize.
Some of these popular exchanges may even hold contests where the best traders are offered rewards in the form of tokens or NFTs while others offer fiat rewards.
Generally, these competitions have their unique set of rules and entry requirements. To take part in certain competitions, an exchange may require participants to hold a specific number of a particular token(s). They may also require entrants to have held those tokens for a minimum amount of time, say 6 months or a year in some cases.
Some of the top crypto trading competitions are hosted by popular exchanges such as Coinbase, Binance, eToro, and others. For instance, Coinbase recently hosted the ‘NBA x Coinbase Sweepstakes’. It was a giveaway program where the rewards included a food and beverage allowance of $3,500, $3,000 worth of Bitcoin directly transferred to the winner's wallet, and a chance for the winner and 14 of their guests to watch an NBA game of their choice and much more! The competition is currently live and ends tomorrow.
Other popular crypto trading contests are the World Series of Trading (WSOT) organised by Bybit and the Futures Grand Tournament organised by Binance. The latter was held last year and offered a lofty prize pot of $1.8 million. eToro, another major crypto exchange, organised a trading challenge where the prize money consisted of $15,000 allocated for the top 10 traders.
Benefits of joining a crypto trading contest
Exposure and experience
Crypto contests provide you with a great chance to learn from other talented and skilled traders. Sure, you can read many articles on trading strategies, but there is nothing like seeing these strategies deployed in real-time.
Try different trading strategies
Demo contests allow novice investors to try new strategies, without risking any losses. If your strategies work, you can use them with confidence in the real market. Further, if the strategies are good enough to win you the demo contest, you will also earn handsome rewards. Win-win, right?
Learning risk management
Participating in trading competitions is a fun way of exploring diverse risk management strategies which you may not have been familiar with previously. Watching others using innovative strategies to mitigate risks and generate rewards can help you imbibe some great strategies.
Rewards
If you are a skilled trader and love trading, then there is nothing better than to employ your skills and earn significant rewards, and yes, these rewards can be huge. Moreover, you get the opportunity to earn such big money without investing a dime from your pocket but only your skills and time.
Conclusion
Crypto trading competitions are an excellent way of generating significant chunks of money and all through a gamified experience. You can look for multiple such exciting contests on social media platforms like Twitter or crypto forums such as Discord or Reddit. Just remember to do your own research and only put as much crypto on the line as you are comfortable losing entirely.
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