Are you a crypto trader looking to generate high income but don’t have enough capital?

Imagine having access to up to $100,000 in trading capital without risking your own money. Imagine the freedom to trade with confidence, knowing that you can keep up to 90% of the profits you generate. With Prop Trading, these possibilities become your reality.

Consider this: a trader with a $100,000 funded account who achieves just a 10% annual return could potentially earn $10,000 monthly, while risking nearly $0 of his own capital.

The more successful trades you make, the more you earn. Imagine the financial freedom and lifestyle improvements that come with such earnings.

Crypto prop trading platforms give traders an opportunity to generate high earnings without using their own money. To access these benefits, aspiring traders must first pass an audition; a structured evaluation that tests their skills and strategies.

This article will outline everything you need to know to understand if this opportunity is for you.

Crypto prop trading firms are an appealing option for traders seeking high earnings with minimized personal risk. These firms provide capital for traders to use, sharing profits in return. Candidates must pass an initial evaluation to access funding.

What is a Crypto Proprietary Trading Firm?

Crypto proprietary trading firms are companies that provide traders with capital to trade cryptocurrencies, while sharing the profits earned. These firms have become popular among traders because they allow them to access larger amounts of trading capital without risking their own money, making it easier to earn bigger profits.

They also often provide education, access to trading exports and support. Traders prove their skills in a demo environment before getting real money to trade.

How Such Firm Work?

Crypto prop trading firms, like HyroTrader, provide traders with capital to trade cryptocurrencies in exchange for a share of the profits. Traders are typically required to pass a rigorous evaluation process, proving their skills and risk management before receiving the firm’s capital.

These firms often offer a scaled model where successful traders can manage increasingly larger amounts of capital based on their performance. The firm’s business model profits from the trader’s success and the fees charged during the evaluation process.

3 Steps to Getting Funded.

1. Sign up and pay upfront fees for trading challenges. Prop trading firms offer multiple options for traders that typically cost $100 to $1000 for taking a trading challenge. If the trader passes the challenge (i.e. generates profit with limited risk), he then gets access to firm’s capital from $5K to $100K or more.

2. Pass a trading challenge. You have to prove your trading skills during a trading challenge, which simply means generating certain profit goals with minimal losses along the way. Prop trading firms provide capital to traders, but they want to make sure they select profitable traders. Here are some common rules that trading challenges include:

a. Trading period
b. Minimum trading days
c. Stop loss order use
d. Maximum trade size
e. Daily drawdown
f. Maximum loss
g. Profit target

It’s important that you understand the challenge rules and trade accordingly. If you break a rule, you will not get funded (capital) and lose the fees you paid to take the challenge.

3. Get funded. Yay! You passed the challenge and now you’re about to earn some serious mullah! OK, hold your horses! Be sure to still follow the trading conditions. You can’t just go haywire and take excessive risks. Prop trading firms want you to make money so they can share in your profits and they want to protect their capital. You will still have some restrictions on daily drawdown and maximum loss, among other things.

Pros of Crypto Proprietary Trading

• A shot at gold! Trading with a cryptocurrency proprietary trading company gives traders the chance to trade with much more money than they could by themselves. This opportunity lets traders make bigger trades and possibly earn more money, all using the company’s funds.

• No capital risk. The prop firms bear the losses, as long as traders follow the rules for managing risk. So there’s no risk to your own capital, because you’re not trading your own capital (duh!).

• Learning opportunities. Some cryptocurrency prop trading companies provide training, education and continuous assistance to aid traders in enhancing their techniques and boosting their results.

Cons of Crypto Proprietary Trading

• Crypto is volatile and often experience big price swings, which can result in quick profits or losses. These quick price movements can make it hard to control risk, particularly in a trading situation where a lot of money is borrowed.

• Share profits. Prop trading companies take a share of trader’s profits, which reduces the trader’s final earnings.

• Payouts risk. If the prop trading firm becomes insolvent, it may not pay out traders’ earnings.

• Upfront fees. If you don’t pass the trading challenge phase, you’ll lose out on the fees you paid. You have to decide if paying a small upfront fee is worth a shot at making large earnings with zero risk to your capital.

How to Pick the Right Prop Trading Firm?

When picking a crypto prop trading firm that provides funding, you need to think about a few important things to make sure you’re working with a dependable and successful company.

1. Reputation. Start by checking the firm’s reputation and history in the business, since a firm with a good track record and positive feedback from traders is more likely to provide a secure and reliable setup. You don’t wanna generate big earnings only to find out that you don’t get paid out!

2. Challenge process. Be sure you understand the rules of the trading challenges and how they compare among the prop trading firms. Obviously, you should pick the one with the easier challenge rules or at least rules that fit your trading style and strategy, which gives you a realistic chance of passing.

3. Education and support. Look for firms that offer mentorship, webinars, and other learning opportunities to support your growth as a trader. The quality of the trading platform is crucial; it should be user-friendly, reliable, and equipped with advanced tools for analysis and execution.

4. Profit sharing. You will not find many differences in this criterium. Most prop trading firms pay out 80-90% of profits to traders. More important is whether they will actually pay out those profits.

5. Check the fees and costs involved relative to the size of capital funded. Again, the differences are relatively small here.

Leading Crypto Prop Trading Firms

When looking for leading crypto prop trading firms, it’s important to find those that offer competitive advantages, robust trading tools, and supportive environments. Here are three notable firms that specialize in cryptocurrency trading, each offering unique features to traders.

• HyroTrader: HyroTrader is a crypto prop trading firm offering unique advantages to traders. Traders start on demo accounts and, after proving profitability, are moved to real funded accounts, unlike most firms that only use simulated accounts. They trade on the ByBit platform with access to over 500 crypto pairs, including futures and spot trading. HyroTrader offers up to 1:100 leverage, no swap fees, and refunds the challenge fee after the first profit split, making it a compelling choice for serious crypto traders.

Get Funded

• BrightFunded: BrightFunded is a funding firm offering traders a unique simulated trading environment with up to a 100% profit split and access to 35+ crypto pairs. The firm operates on a fee-based enrollment model, where traders demonstrate their skills in a Challenge to join. BrightFunded emphasizes transparency, innovation, and education, providing in-house learning resources and a gamified trading experience.

• CryptoFundTrader: Crypto Fund Trader is an evaluation services firm that offers traders the opportunity to trade various financial instruments, including cryptocurrencies, forex, indices, commodities, and stocks using virtual funds, with the potential to earn real profits. Traders must complete an examination process to access up to $200,000 in virtual funds and are eligible to receive 80% of the profits they generate. The platform provides competitive conditions, such as spreads from 0 pips, low trading fees, no trading restrictions, and high leverage of 1:100.

Learn more in this in dept review article!

Final Thoughts on Crypto Prop Trading Firms

Crypto prop trading firms offer a unique opportunity for traders to access substantial capital, reduce personal financial risk, and benefit from professional training and support. These firms can be highly rewarding for skilled traders, providing the potential for significant earnings as they trade with larger amounts of capital. However, it’s important to recognize the risks involved, such as market volatility, profit-sharing agreements, and reliance on the firm’s stability. Before joining a crypto prop trading firm, it’s crucial for traders to conduct thorough research, carefully evaluating the firm’s reputation, fee structure, and support resources to ensure it aligns with their trading goals and risk tolerance.

FAQ

Are there any fees involved with crypto-funded firms?

Most crypto-funded firms charge a fee for the evaluation process or require a subscription fee to access their trading platforms and educational materials. However, these fees are generally used to maintain operational standards and ensure only serious traders apply.

How is profit divided between the trader and the crypto prop trading firm?

Profit-sharing terms vary by firm but generally, traders can expect to keep a significant portion of the profits (often around 70% to 90%), with the remainder going to the firm. This ratio is agreed upon at the onset of the funding agreement.

What kind of risk management rules do traders have to follow?

Traders are usually required to adhere to strict risk management protocols which might include maximum drawdown limits, loss limits per day or per trade, and restrictions on trading certain volatile assets.

Can a trader use any strategy while trading with a crypto prop trading firm?

While traders are encouraged to apply their strategies, they must align with the firm’s risk management guidelines. Some firms might restrict trading styles that are considered overly risky, such as scalping or the use of high leverage.

How do crypto prop trading firms handle withdrawals and payouts?

Firms typically have a set schedule for profit withdrawals (e.g., monthly or quarterly). Traders must submit a request, and after approval, funds are transferred to their designated bank accounts or digital wallets.