The reason why the crypto trading contest regulations exist is to guarantee that the most skilled trader wins and not the luckiest person, the quickest bot, or the one with multiple accounts. When you enter a competition where virtual balances can result in an amount of actual money, knowing all of the rules matters just as much as knowing the market. The purpose of this guide is to go through the crypto trading competition regulations — types of eligibility, limits in positioning, scoring time, anti-collusion policy, disqualification, and payout eligibility.
Any contest must begin with the same question — who may participate and under what conditions. At BuyCrypt, in order to make sure that you compete on a virtual balance but yet have an opportunity to get real USDT, eligibility is established and rigorously enforced. Free entry contests require you to deposit nothing at all because you just need to register, receive a balance that is equal to other contestants and start competing. Paid contests start with only $5 of participation fee to make sure that winning does not depend on the amount of funds.
Generally speaking, the crypto trading contest eligibility process boils down to a few simple points: one person has one verified account; one registered user agrees to the terms in accordance with which he/she participates with a balance that is identical to all other participants. It is rare that a person registered with a new account and trading with his/her own funds has any issues with eligibility.
Position limits are conditions that determine whether a contest measures trader’s skills or has just become a game of chance. Depending on the competition format, the contest may have a position limitation on the maximum position, restrict leverage and even state what instruments are allowed to be traded. At BuyCrypt, we use one platform across all of the exchanges that are operated by the company.
Position limit regulations matter because they influence trading strategies. Position caps imply that you cannot just play-the-market with all possible leverage; at the same time tournament may include PMC. Do not forget to check the limitations before making your first trade because they differ from contest to contest.
Every contest has a specific scoring time window that starts and finishes within certain time frames. Trading positions that are initiated before the start of the contest or left open after the contest finishes depends on the specific rules of the contest; this means that the results reflect your real performance only during the time of the contest.
Scoring is a transparent process. Most of the tournaments include other ranks like PnL and ROI and some add PMC to the ratings. Since participants start off with identical balances and trade on the same simulated market, the scoring does not depend on anything else.
Remember that you should finalize all the trades as close to the end of the window as possible. The best results will be achieved by traders who constantly keep track of the closing time.
A competition can be fair only if there are no collusions among the participants in the competition. The most important violations in the contest are collusion and multitasking (i.e. using multiple accounts to get to the top of the leaderboard). Anti-collusion oversight includes shared deposit details, general withdrawal patterns, and shared trading strategies.
There also exists exploitation of automation technology and tactics to win by any means. If you keep trading from one account only, there will be no fairness issue.
The disqualification policies provide a clear understanding of certain factors that render an outcome invalid. Some of the main disqualifying points mentioned include creation of multiple accounts, engagement in collusions, usage of restricted automation, breach of position size and leverage limits and exploitation.
It's important to note that all disqualifications are based on evidence. In other words, if you have assigned wallets from multiple accounts or get linked to trading activities, there will be proof of collusion.
So, you should not worry since anything that can lead to disqualification never occurs by itself. Just keep to the limits stated in the regulations, and they will never be useful to you.
Winning a competition and receiving payouts.
The same sets of rules apply to the paths that exist in the mechanism of prop-firm for positive trading results during all the tournaments. To access the funded evaluation of prop-firm you need to pay $5 to enter or to take The Ladder path for free. Note that 127 funded accounts provided in total.
Learning the rules and understanding them helps to get the funded evaluation stage for free via The Ladder or by funding your account for $5.
BuyCrypt is an environment for virtual competitions based on either trading or skills where the results completely depend on your performance. However, in case you choose to understand all the mechanisms of success, you may probably win.
Basically, you need to have a single verified account, to accept the tournament rules and to have a balance equal to any other participant. In the case of free competition – you do not need to deposit any money, whereas in the paid tournaments, you have to pay $5 to start or win your entry for free via The Ladder. Your own, honest operations on your account mean your participation eligibility.
Indeed, there are rules that set limits for every single competition, where it is prohibited to leverage beyond the allowed limits and to open a position larger than what has been set. It helps to ensure that competitions remain the competition of skills instead of one big bet. Remember to check limits of every competition card prior to executing orders.
A scoring window means that a beginning and an end of the competition are set and all the trades made during such a period of time serve as the basis for ranking. Generally, it is based on realized success (PnL and other indicators) and some competitions adopt usage of position movement change as well. Try to score closely as if it was a chart.
Disqualification may happen in case of multi-accounting, collusion with other players, unacceptable use of automated programs and bots, breaching the limits, or using bugs instead of using a market itself. Disqualifications are based upon certain evidence and they are not caused by accident, which happens.
Fair-play rules allow everyone to work independently. This is a shared system that controls shared deposits, related accounts, and synchronized timing of trades. Fair-play principles help to protect serious and ambitious players.
You will receive your winnings only after finishing your competition properly with compliance to all the rules. The payments are processed afterwards on-chain and they are also trackable.
