What Are Benefits Of Fantasy Contests Over Traditional Trading?
Fantasy trading games let you tap into an additional source of income and start earning money from stock markets without the usual risk. They test many of the same stock-picking skills as traditional trading, but in a very different context. Fantasy contests have redefined trading, making it less intimidating and ruling out the stress and risk component. By breezing through stock and crypto contests, not only do the entrants get to know the basics of financial markets, but they also get cash prizes if their portfolio outshines the rival’s.
The biggest benefit of fantasy rumbles over traditional trading is that you keep your portfolio in check and control the risks.
As is known, traditional trading requires hefty investments to profit from the small price swings and entails a risk of losing money instead of profiting. Any investment increases the potential loss, which is why many young traders and investors shy away from the market after giving it a first try. No one wants to lose their money, and the financial market seems to deter beginners from trying their hand at this tricky side hustle.
On the contrary, you can catch a glimpse of how prices fluctuate without paying a penny when entering a fantasy finance contest. In this case, losing brings market knowledge unencumbered by a bitter taste of defeat. But even if you dare to plunge into cash-fee contests, you are the one having control over your winnings. You also won’t lose money because you missed an opportunity to trade or your broker failed to execute an order in time because you are competing with other players rather than making money from the market itself.
People, who have no intention of delving into trading and who are just seeking ways to make some extra cash in their free time, will hardly bother looking into traditional trading as it implies risk, stress, and a whole host of new information brought in an indigestible way.
In contrast, fantasy trading apps are designed from the ground up to be entertaining. Contests last for 5 minutes, so they don’t take up your time, but offer an invaluable trading lesson and even some gains if you beat your fellow rival.
Fantasy contests also provide a social and competitive structure in the form of tournaments that traditional trading lacks. Over the course of each match within a tournament, you will compete against a group of competitors for the top spot on the leaderboard. This not only lets you see how your skills stack up against your peers in a fair environment, but also provides the incentive to develop your skills in order to overtake your rivals.
Game of Skill
Your winning capability in fantasy finance is limited only by your stock and crypto-picking skills, not the amount of money invested in your portfolio. In traditional trading, the extent you can profit from a trade still depends on how much money you can afford to risk losing. Not to mention the stake you need to place an order. Depending on the assets you want to trade, you might need to invest as much as $10,000 or even more.
Even though you decide to enter trading with a smaller stake, this will only increase your risk, especially when shorting, as you will be forced to close your position at a loss if the cost of closing that position exceeds your stake. A small stake generally also means you will get slower order execution from your broker than their big customers.
This whole thing means that regardless of the skill involved in reducing risk in traditional trading, mitigating that risk also takes quite a lot of money. In fantasy trading, it works the other way around. Having paid an entry fee for the contest, you don’t need to rack your brain calculating the impact of the amount of money in your account on your success or failure, as there is no connection at all. The same is true for your competitors. Everyone is on equal terms and no one gets special treatment or any additional benefits to have an advantage over other participants.
With a predefined fixed entry fee for all entrants, drafting a strong portfolio is the only factor that decides whether you gain the upper hand. When it comes to crypto, you aren’t even limited by market hours, as cryptocurrency exchanges work 24/7.
Stock and Crypto-Picking Strategies
Cryptocurrencies are all the rage for both long-term trading, day trading, and fantasy trading, with its crypto-picking matches that enhance its popularity. Crypto is a high-risk investment in traditional trading but in fantasy trading, this just adds thrill to the process.
On the one hand, the high volatility of cryptocurrencies factors into bigger gains in the short periods of time, but on the other hand, it leads to bigger losses without the opportunity to retrieve them. The same ups and downs happen in fantasy trading, as all fantasy contests depend on real-time data from stock and crypto exchanges, but the difference is that you still only lose the cost of the entry fee if you make the wrong call.
Pay Attention To Current Volatility
As said earlier, volatility is what drives our gains and losses, and it should be the first metric to use when pinpointing the best assets for your portfolio both in traditional and fantasy trading. Cryptocurrencies are known for being highly volatile, but the truth is that stocks are also prone to highs and lows. Even though such fluctuations usually don’t affect long-term portfolios, day traders can suffer considerable losses. That’s why it’s important to keep your ear to the ground when it comes to volatility and check the price movements of the assets you add to your portfolio to be able to predict the direction of price with some precision.
Align Your Strategy With Types of Contests
Picking the assets that will grow the most in the next 5 minutes is different from picking the assets that are likely to go up in the next 15 minutes or an hour. You need to adapt your portfolio to the type of contests you enter according to the previous price movements within different periods. The great thing about fantasy finance contests is that there is always a winner regardless of whether your portfolio is in the red or green. That all boils down to overtaking a rival. So a lousy portfolio in traditional trading can become a winning bid in fantasy finance.
Hedge Your Picks
Fantasy contests are not actual trading, but they employ the same strategies, like hedging, for instance. Hedging is a strategy that can offset the cost of the matches you lose. After drafting a portfolio for one contest, back it up with a lower fee contest where you choose opposing players. If you win the first match, you’ll suffer inconsiderable losses, but if your theory goes down the drain, you can still recover the entry fee by winning the second contest.
Safe And Fun Alternative To Trading
Dabbling in stock and crypto markets doesn’t mean you have to jeopardize your savings or be stressed out with inevitable price movements. Everyone who wants to try their hand at trading can do that in a safe environment and with lots of fun. With no risk attached, fantasy contests provide all manner of trading experiences in conjunction with valuable knowledge and cash prizes. All these factors attract a huge audience of beginner traders who become empowered to look into actual investing opportunities after getting the hang of the market in fantasy matches.