Crypto Fantasy Trading: How to Use a Play-to-Earn Approach to Make Extra Income with Cryptocurrency

Bitcoin launched in 2009 as the first cryptocurrency available to the world. Who would have thought that the crypto market would have such a massive expansion in the following years?

Today, everyone seems interested in this industry. The majority has a single goal – making money. But that’s easier said than done. In this article, the focus will be on fantasy trading. This is a new option to earn extra income by participating in crypto-based competitions. You’ll also discover how to develop a play-to-earn approach that could get you a step closer to that additional revenue!

Why Is Fantasy Trading an Attractive Way of Earning Extra Income with Crypto?

You have various chances to profit from cryptocurrencies. The old-school way is buying a currency and waiting for its value to rise. You can also earn dividends from some coins or even run master nodes. All of these methods require patience, effort, and enough market knowledge.

Now, tell me how this sounds:

• Learning about crypto basics, such as volatility, price graphs, etc.
• Having fun by participating in competitions and testing your skills against other players.
• Getting a chance for an extra income if you win contests.

These are all features delivered by fantasy contests, the new trend to hit the crypto market. Instead of trading on actual markets, you participate in competitions based on real-life crypto events. This allows you to learn about these currencies and get ready for actual trading. And if you outsmart the opponents, you take the prize pot home.

How Does Fantasy Trading Work?

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Fantasy trading contests are tournaments where you compete against other participants. You can join head-to-head competitions where the winner takes the entire prize pot. The alternatives include leagues where the top-ranked participants qualify for rewards when the competition finishes.

Your task is to choose assets for your portfolio from the available ones. The competitions are time-sensitive and they can last anywhere from 15 minutes to several weeks. Whatever the duration, you need to choose assets that will perform better during that time. The real-life crypto market serves to monitor the performance of chosen assets. Many fantasy finance sites allow live scoring, which adds to the thrill of the competition.

Once the competition finishes and the official results appear, the platform awards the prizes to those who win them. You can participate in as many competitions as you want and pick from different stakes required to join. That ensures impressive versatility and makes fantasy trading suitable for casual and high-roller users.

Crucial Tips to Develop a Play-to-Earn Approach for Fantasy Contests

The great thing about crypto fantasy contests is that they aren’t games of chance at all. You might need a little luck, but it’s more about knowing how to create a winning portfolio. That’s why your goal is to develop a play-to-earn approach.

While participating in fantasy trading competitions, you don’t want to pick currencies randomly or because you like their name. It’s necessary to make informed decisions and choose a crypto portfolio with the highest chance of winning. Here are some tips to help you with the selection!

Rely on the Tools Available

You should find a fantasy finance platform that provides useful information while choosing currencies for your portfolio. For example, if you choose StockBattle, the following information will be available for each crypto.

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You can see its 24-hour volume and market cap, as well as price changes over different timeframes. That will help you understand how that asset value changed recently. It’s an important indicator that can help to find the right currencies for your portfolio.

While we are on the topic, let’s mention that these tools have an educational factor, too. Although this is fantasy finance, the asset price fluctuations are real. That will teach you about different crypto assets, but also their volatility. You’ll better understand how volatile currencies work, which helps when choosing them for short-term performance. All that will get you ready for the actual trading market if you ever wish to try it.

The Importance of Staying Informed

Cryptocurrencies are extremely volatile, and each event and news relevant to them can affect their value. For example, when Mel B announced that fans could use Bitcoin to buy her single in 2013, its value increased. If you picked BTC for your fantasy trading contest when that news first appeared, it would have been a smart choice.

Here are some sources where you can be informed about the crypto market:

• Reputable exchanges publishing crypto industry news
• Official websites of the assets
• News platforms and social media

Staying informed about all the events related to the crypto industry is mandatory for all crypto fantasy traders. If you want a play-to-earn approach, you can’t afford to miss a single important piece of news. That’s mostly because the currency value often changes minutes after the news goes public.

Develop the Right Strategy

The play-to-earn approach will require adapting your tactics to the competition you are joining. It’s like when coaches in football matches change their strategy based on the opponent. So, if you play tournaments that last for months on TradeOff, you’ll need a specific strategy. But the methods for choosing your portfolio change if you move to 15-minute fantasy contests on StockBattle. That being said, here are some approaches you can use when selecting the assets for the competition!

Go with or Against the Trends

You checked the charts for a particular crypto. It had steady growth over the last couple of hours or days. From here, you have two approaches. You can follow the trend and predict that the asset will continue growing. That can be a suitable tactic for short-term fantasy contests.

On the other hand, no asset can grow indefinitely. At some point, the trend will change, and it will start losing value. If it seems like the price increase has been unusual, perhaps the trend will change soon. This option is worth trying, especially if you play competitions that last longer and observe the price changes on a weekly or monthly basis.

Analyze the Previous Fantasy Contests to Learn Something

A reputable finance fantasy platform will store information about the previous contests in its archive. You should analyze each competition you joined, whether you won or lost it. If possible, try to see what you did right and where you can make improvements. That information could help you to tailor the approach for upcoming fantasy contests of the same type.

Use Hedging If It’s the Right Option

Hedging can be a smart strategy if the situation calls for it. Let’s say you picked a portfolio for the fantasy trading contest and invested big. However, you only chose five assets, and there are more that seemed like a good choice.

Hedging involves joining another tournament where you pick currencies you left out from the first competition. The trick is that you invest just enough to return your total stake or control your losses. If the better scenario happens, you still profit by winning the first competition. But even if you only win the second tournament, there won’t be any losses, or they would be minimal.

Final Thoughts

Crypto fantasy trading is incredibly attractive for its multiple benefits. For starters, you will surely have a fun experience participating in fantasy contests against other users. While you are competing, you’ll discover more about the crypto market. That includes understanding graphs and charts, as well as learning about asset volatility.

Last but not least, you’ll have a chance for extra income. If you choose your portfolio wisely and have enough luck, you could come out as a competition winner. And if you choose fast-paced fantasy contests on StockBattle, it means you’ll almost double your stake in only 15 minutes. Don’t hesitate to give fantasy trading a shot, and make sure to apply the play-to-earn tips from this article!