Back in 2009, Bitcoin was the first cryptocurrency to ever hit the market. The popularity of this cryptocurrency has soared in recent years, leading to the rise of cryptocurrency trading competitions. These cryptocurrency trading competitions aim to make you more knowledgeable about bitcoin and test your trading skills. In addition, trading competitions provide you with an avenue for making money.
But if you’re inexperienced in Bitcoin trading competitions and have no idea where to start, worry no more.
Here’s an in-depth guide to everything you need to know before enrolling in bitcoin trading competitions.
- Why Should You Become A Bitcoin Trader?
Before joining Bitcoin trading competitions, even with the help of a crypto trading simulator, you must first find out your motivation for such an endeavor. This is critical since the volatility of Bitcoin allows you to make money while also risking a significant amount of money. However, Bitcoin trading is still something you should explore, and here are some compelling reasons why it may be ideal for you:
- This cryptocurrency has exhibited constant growth since its launch, despite harsh criticism and volatile movements. This is because this cryptocurrency has continued to improve its security measures and trading process.
- Bitcoin is a worldwide currency that can be invested in over 90% of the world’s countries. This makes it convenient because you can use it to purchase products and services regardless of your location.
- You can trade Bitcoin 24/7 across web-based cryptocurrency exchanges.
- Extreme market volatility presents you with the opportunity to make money from this cryptocurrency’s upward and downward movement.
But to succeed, you must know the best time to leave your current position and avoid suffering an excessive loss. Although this might sound pretty straightforward, applying it isn’t that easy when facing real-world pressures and the actual reality of losing money.
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- What Steps Should You Follow Before Entering Bitcoin Trading Competitions?
Before entering a Bitcoin trading competition, you must gather as much knowledge as possible on this subject. This will help boost your chances of success and help you learn about the laws and potential risks you might face in your crypto trading journey. Here are the steps to follow:
- Create An Account With A Crypto Exchange
Without a trading account, you cannot begin trading Bitcoin or any other cryptocurrency. Therefore, you must first open a trading account with a reputable cryptocurrency exchange.
If you live in the United States, you’ll need to provide your name, date of birth, email address, password, and Social Security Number to create an account. Once you’ve completed the registration process, you’ll receive an email with a verification code.
- Fund Your Account
Once your account has been verified, you should proceed to fund your account to start your bitcoin trading journey. You can have several options at your disposal, including wire transfer or the use of debit and credit cards.
- Start Trading
The only crypto you’ll be dealing with in Bitcoin trading competitions is Bitcoin. Therefore, you will not have to worry about picking which cryptocurrency to invest in and may begin trading immediately. However, to succeed as a Bitcoin trader, you must follow several helpful strategies, which include:
- Try out several trading techniques to determine which one works best for you. This will take time, so you need to be very patient and take advantage of the dummy accounts to hone your trading skills. After harnessing your trading techniques, only then can you move on to trade with real money.
- Maintain emotional control during the Bitcoin trading competition. This is a rule you must follow as part of your overall trading strategy since it provides you with an analytical view of the optimal move to make at any given time.
- To acquire an advantage over your competitors, continually evaluate your performance and improve your trading strategy.
- Bitcoin trading competitions are limited in duration. Therefore, you must exercise exceptional time management when formulating and implementing your trading plan in the rapidly changing market conditions.
- During the Bitcoin trading competition, if your trading approach seems ineffective, don’t be afraid to observe what your competitors are doing. You can shorten your learning curve by using the insights of more seasoned cryptocurrency traders. However, it shouldn’t be your primary strategy if you want to succeed financially.
- What Rewards Should You Expect From Crypto Trading Competitions?
One of the primary motivations for participating in a Bitcoin trading competition is that you will be rewarded for your efforts. However, the payout varies, and here are some examples of what you may anticipate receiving during a Bitcoin trading competition:
- NFTs: The democratization of asset access via Metaverse and Web3 has resulted in a surge in demand for NFTs. Typically, bitcoin trading platforms work with NFT-based businesses to award winners with a new NFT. This NFT you were given may become valuable in the future and is an excellent method to diversify your asset portfolio.
- Trading Bonuses: The cryptocurrency exchange will also provide you with either discounted trading fees or bonuses for achieving success.
- Game Items And Currencies: For Bitcoin trading competitions held in a blockchain play-to-earn space, users are rewarded with in-game items, currencies, and related things. These components you’ve won might have a significant market value, and you can sell them to earn a profit.
- Stablecoins: This is another reward you can get for winning a Bitcoin trading competition. Stablecoins are great because they’re fixed to a fiat currency, so they don’t experience much volatility as other cryptocurrencies. Therefore, you can convert these Stablecoins to reinvest in your cryptocurrency portfolio or use them in real life.
- Gift Cards: E-commerce companies are now collaborating with bitcoin exchange platforms to satisfy this target market. As a result, gift cards or coupon codes can now be given to winners of crypto trading competitions as prizes.
Here are the major benefits of mock trading platforms
- Risk-free tool to practice
- Gain expertise
- Reward-based experience instils confidence
Here are few more tips to beat competitive crypto trading
- Manage Your Time
- Increase Your Risk for Short Run Profits
- Don’t Add Emotions and Anger in Trading
- Don’t be Think Twice to Watch & Copy Successful Traders
- Keep Analyzing Performance & Adjust Trading Strategy
The competition is one of many excellent crypto trading platforms. Brokers submit applications yearly for several trading platforms’ international competitions. Brokers reward traders who take home large payouts. So without further delay, let’s get to the point. You should research websites and take part.
How novice investors may grasp cryptocurrency trading through mock trading. In addition to offering a secure paper trading tool, a mock trade ecosystem instructs users on how to begin investing, which is crucial for a novice.
To remain competitive in bitcoin trading competitions and correctly predict the price movement of cryptocurrencies, you must first understand this market. This reduces your vulnerability to fluctuating market conditions, which could cause you to incur a significant loss or lose your entire derivatives exchange investment. After reading this article, you’re now well-versed with what to do before joining a bitcoin trading competition. Following the above-mentioned suggestions will help you succeed in the highly competitive bitcoin trading market.