A few months ago, I had no idea what a prop firm was, a sector that cryptotraders like me did not have much information about. However, I found it interesting what these funding companies for traders offer.
A prop firm is a company that provides large capital to traders, but to get it, you must first pay an entry fee and go through a challenge that has a number of conditions. This is done to prove that you are profitable and capable of handling larger capital.
In my opinion, using a propping company has several advantages:
You don't risk your own capital: by trading with prop firm capital, your own funds are protected, which significantly reduces risk.
Ability to trade accounts up to +200K: Prop firms allow you to access accounts with much larger capital than you could use on your own, which increases profit potential.
Currently, I am funded at Crypto Fund Trader, a prop firm that focuses primarily on trading cryptocurrencies, but also offers other instruments such as forex, indices, commodities and stocks.
One of the things that attracted me to this firm is that they allow any trading strategy, which is critical for me, as I have a custom strategy that I wanted to keep using. They also offer 1:100 leverage and spreads from 0 pips, which allows me to comfortably trade my strategy.
It's also great that we can choose the platform we feel most comfortable with. In my case, I chose to use Crypto Fund Trader's own platform, as I find it very well optimized for my needs.
Another important aspect is the way in which we can earn our profits. The prop firm offers multiple options to withdraw our profits, such as bank transfer, credit card, PayPal, Payoneer, Revolut, Wise, Coinbase, among others.
In summary, using a prop firm has been an excellent option for me, as it has allowed me to work on what I like, which is trading, without having to risk my own money.
If you are interested in more information about the prop firm I use, you can visit their website:
https://cryptofundtrader.com/.