The difference between futures and spot trading competitions impacts the entire way of trading because every element depends on this type of contest; it includes the level of risk you can afford, how quickly you are going to lose your leaderboard position, and whether one liquidation may kill the entire process for you. Both formats provide a space for showing all skills; however, different types of skills earn you points in each. Here are the features of each kind of contest, what kind of scoring model can be successfully applied, and how BuyCrypt runs both events considering that the performance is simulated but the payouts are real.
A spot trading competition makes you buy and hold an asset. The outcome of the trade is simply correlated with the movement of the price in one way, so if you make a profit at 5% move to your way, you`ve got a 5% gain. Everything is rather simple and straightforward, and there are no fundings, no borrowing, or liquidations. People, who participate in spot trading contests, mostly apply their skills and patience; they monitor the situations and control their moves.
The futures trading competition represents perpetual futures- leveraged instruments that allow you to take both short and long positions. Thus, if you do a 5% move within a futures contract, you have a real swing of 50%. There is an important feature of futures- liquidation- that becomes available in any leveraged position: when contract closes, you lose the margin. This difference between spot and futures formats is crucial.
It should be mentioned that no format is the best; a spot competition is like a long-term investment activity, while a futures competition is closer to the game. Therefore, if the leaderboard is based on spot format, you understand you need to be less risky while in futures, you can afford to be more aggressive.
Leverage is an integral part of leveraged contests. People, who manage to guess the direction using a leverage; they become successful at the leaderboard. Those, who fail, face liquidation before the contest ends. Besides, liquidation alters the psychology of the competition, and it changes the entire strategy of a futures competition. Thus, it is an important aspect of the tournament.
If you participate in a futures contest, you can discover all the important aspects, while your balance is virtual. You don`t risk your money; instead, you lose your position.
Having selected an appropriate scoring model, you may look for the observance of the rules. The scoring system relies mostly on the type of contest- if it is a spot one, you will use ROI and PMC scoring, while futures related contests use pure PnL.
In the spot trading competition, the manager of the tournament thinks about allocation and timing; everything is limited by the amount of balance. In a futures trading competition, people risk more and think about survival first.
The platform has two types of tournaments and you do not buy any crypto, you just get the payouts, which are real USDT. There are a number of tournaments organized each week- up to 54 events. The main goal of the platform is to gain a reputation and thus, to earn the money.
Choose spot if you want to demonstrate skills and do not want to be restricted by your downside. Spot competitions are good for you if you prefer long-term investments.
As for the futures contests, you can choose it if you want or if you need to have an opportunity to short and to earn more.
Spot trading tournament has one to one price tracking with no margin or liquidation meaning loss per trade is limited. Futures competitions employ margin and leverage while allowing both long and short positions, with liquidation coming into the game - that's why futures tournament have faster leaderboards but spot tournaments don't.
Spot trading tournament has one to one price tracking with no margin or liquidation meaning loss per trade is limited. Futures competitions employ margin and leverage while allowing both long and short positions, with liquidation coming into the game - that's why futures tournament have faster leaderboards but spot tournaments don't.
Yes, but at the same time, all tournaments on BuyCrypt use demo account - it means no risk whatsoever for your funds.
Raw Profit and Loss system benefits from futures tournament because of higher numbers with leverage but ROI and PMC (Position Movement Change) systems work well with low variance spot tournaments and keep futures competitions differentiated and skill-based.
Yes, because the platform offers unique trading platform for both formats at the same time, thus providing every trader with ways to start from free spot tournaments.
No, because BuyCrypt features free competitions without deposit requirements and has low-cost involvement in the competition via 'The Ladder' winning strategy.
No, it is a simulation.
