The influence of commercial competitions on the development of cryptocurrency skills
The cryptocurrency trading world has grown significantly over the last decade and accepted quickly. As more and more people join the market, competition for profit has become increasingly intense. One of the strategies that has become popular among traders is participation in online competitions where participants compete for specific goals or rewards. Although these events have been identified as one way to improve their skills and develop self -confidence, their impact on skill development is the subject of constant discussion.
What is a trading competition?
Trade competitions usually cause many challenges or tasks to try traders’ skills, knowledge and strategies. They may include:
- Market Analysis : Participants will receive a stock exchange set and will have to prepare forecasts for future price changes.
- Risk Management : We are asked to provide their ability to effectively manage risks with different market scenarios.
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Impact on skill development
While trading competitions can be a valuable way to learn and develop skills, research shows that the influence of skill development cannot be as significant as expected. Studies have shown that participants tend to develop similar skills in commercial competitions compared to those who trade without these events (1). The reason is that many basic successful trading skills, such as market analysis, risk management and strategy, are well established.
Restrictions on Trade Competition
However, this requires many restrictions:
- Selection distortion : Competition participants are more likely to choose markets or strategies that successfully succeed in previous events.
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- To victory : Contests can create an environment where traders focus on victory too much and forced them to disregard other important aspects of trade such as risk management and market analysis.
True examples
Despite these restrictions, many professional merchants and market analysts have set values by participating in online competitions:
- World Poker Series (WSOP)
: WSOP is one of the best known poker racing with big and dedicated observations.
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Conclusion
Although the trade competition can be a valuable way of learning and developing cryptocurrency trading skills, its impact on skills development is limited. To develop the necessary skills, participants need access to high quality training material, mentoring and practical experience. Online platforms and community forums have facilitated individuals to contact other similar interest and goals.
As the cryptocurrency market improves, it is very important for traders to recognize both the benefits and boundaries of commercial competitions. By understanding the dynamics and a more nuanced approach to skill development, traders can make reasonable decisions in which they participate in and how to distribute their time and resources.
Links:
(1) “The Impact of Internet Poker Race on Poker Teaching”, C. R. W. (2017). Gaming & Virtual Worlds, 8 (2), 131-141.
(2) “As a Fact of Cryptocurrency Trade as a Fact of Cryptocurrency Skills”, J.E.M.
