Every year, the crypto market attracts more and more traders and investors, turning into an increasingly competitive environment. If we look back at the situation a few years ago, educational courses were one of the main tools for attracting users. Webinars, online courses, and training programmes helped traders learn the basics of working with cryptocurrencies.
However, over time, the market became saturated, and gradually more and more traders began to offer educational content, claiming that their programme was the most effective. As a result, courses took a back seat to interactive and dynamic learning methods such as trading tournaments. Instead of passively studying theory, tournaments motivate traders to act in real conditions. But why did exchanges rely on such competitions?
Traders’ competitions in tournaments are aimed at achieving maximum profit over a certain period, where each participant uses different strategies and tools for successful trading. The winner is usually the one who demonstrates the highest trading volume or achieves the highest rP&L.
Trading tournaments can vary significantly in format and conditions, depending on their purpose and target audience. In particular, the main ones include the following:
- Time-limited. Most tournaments have a clearly defined period of time during which participants try to achieve the maximum result.
- Profit-oriented. In such competitions, the main thing is to reach a set level of profit. Usually, it is expressed as a percentage of the starting capital, and the winner is the one who reaches this goal first.
- For algorithmic trading. This format was created for developers of trading algorithms, and the winner is the one whose automated strategy will bring the most profit.
- World Championship. It is considered to be the highest level of competition, in which only traders with a proven history of stable profits and high results are allowed to participate.
Such tournaments provide many benefits for both participants and the platforms themselves.
- Rewards. Participants not only earn profits thanks to their trading skills, but also receive additional bonuses for participating in tournaments, especially the winners.
- Experience. Trading competitions help participants go beyond theoretical knowledge. Real trading in a competitive environment provides a much better understanding of the market than even the best training courses.
- Risk management skills. Tournaments force participants to think carefully about their decisions, as each trade affects the overall result. As a result, it helps traders improve their risk management skills.
- An incentive to learn new strategies. High competition in tournaments encourages traders to improve their strategies, learn new methods, and adapt to the rapidly changing market. This leads to the professional growth of participants and improves their ability to make optimal trading decisions.
- Improved reputation. Successful traders gain recognition in the crypto community, opening up new career opportunities. And exchanges that organise tournaments strengthen their positions in the market by attracting more users.
Trading tournaments are not a new phenomenon in the crypto industry, and most exchanges regularly organise such competitions. For example:
- Binance runs a variety of tournaments, both for a broad audience and more localised competitions, to stimulate activity in the futures market and increase trading volumes.
- Other exchanges, such as OKX, also have similar initiatives, but their tournaments are often targeted at their affiliate users, which adds to their exclusivity but also serves as a limitation for a wider audience. Therefore, such tournaments can both positively influence the activity of traders and limit the attraction of new participants.
At the same time, it is worth mentioning the tournament organised by WhiteBIT, which recently impressed traders with its format. In particular, the first stage has now taken place, which will determine the winner who will take part in a large-scale championship that will be held in live mode. This innovation has become a significant step forward in the development of trading competitions and has aroused great interest among participants.
On most cryptocurrency exchanges, traders can find tournaments of various formats and compete for impressive prizes. Trading tournaments have become a powerful tool for attracting new users, major players, and active market participants. As a result, the participation of experienced traders in tournaments not only strengthens the exchange’s reputation among other market participants and contributes to the growth of trading volumes, but also has a positive impact on its liquidity and overall capitalisation. For example, if we look at the capitalisation formula based on Coinbase’s market value ($43.35 billion as of 4 April), we can assume that after the tournament, WhiteBIT’s virtual capitalisation could increase to $27 billion, up from $23 billion in February 2025. Moreover, participants who win prizes can stay on the exchange and use its tools in the future, whether it is a market-making programme or other business offers. Imagine the financial benefits this can bring to a company?
To better understand the impact of such tournaments, I reached out to leading traders on the TradingView platform, and their opinions were divided. When discussing the impact of competitions on exchange liquidity and token prices, Candle_Styx said the following: ‘Crypto exchange tournaments artificially inflate liquidity for featured tokens through incentivized trading — but this is a temporary illusion. While we see short-term volume spikes and price pumps during events, both typically collapse afterward.’
At the same time, according to AdvancedPlays: ‘For something like Bitcoin with a large market cap liquidity, I don’t think liquidity is affected by trading competitions. However, if it’s a smaller market I think it could be impactful if the competition is large enough, though I have never witnessed it.’
Opinions are also divided on how tournaments affect the credibility of exchanges. Candle_Styx believes that ‘these competitions are primarily profit engines disguised as marketing. Every trade generates fees for the platform, while traders gamble with capital chasing unsustainable rewards. So I do not really give them any attention anymore because I have seen enough crazy stories involving FTX, Binance, Bybit, MEXC, BitMEX and KuCoin to make me understand this is not my cup of tea.’
In contrast, AdvancedPlays, based on its experience, notes: ‘I think they can increase credibility if it’s a legitimate competition that is run well and has significant prizes. It may inspire more confidence leading to a larger cap as well, assuming it goes off without a hitch.
I have competed in some competitions on TradingView and personal challenges I do publicly. It definitely helps me focus and take trading more seriously when I know the results are public and many are watching. I find it easier to be more disciplined in my trading decisions and follow my own rules that I sometimes forget or ignore. Overall, it makes me less likely to gamble and stick to strategies I know work.’
trading tournaments are not just a competition for rewards, but a way to hone skills, test strategies in real conditions, and gain a foothold in the cryptocurrency community. And while some traders see them as a temporary hype, exchanges are already using them as a powerful mechanism for growth and attracting new players.
