Why a crypto demo contest is both brilliant and terrifying

Dedicated to providing a transparent, innovative and high-end trading experience, leading forex broker Blackwell Global has recently expanded its product offering with the launch of 15 new cryptocurrency CFDs. To coincide with this bold move, they have also decided to run a contest which is designed to put trading skills to the test in return for prizes – including substantial cash rewards.

 

The Crypto July Demo Trading Competition will be held from the 1st-28th July 2018 and will offer traders the perfect opportunity to trial their crypto CFD strategies in a safe ‘demo’ environment. Those taking part will go head-to-head with other like-minded people and have access to a platform similar to the highly regarded Metatrader 4 platform offered by Blackwell Global.

 

In a reveal-all interview, Blackwell Global UK CEO, Patrick Latchford, provides behind-the-scenes information about the upcoming contest:



 

  1. Whose idea was the crypto demo contest and why?


I would take credit for such a great idea but it wouldn’t be fair. In this case it was Rupert Hadlow, my Marketing Director. He loves a demo and I must admit that it’s a simple yet exciting way of introducing clients not only to Blackwell Global as a brokerage but also to our platform and our products on a ‘no consequence’ basis. Also, from a marketing point of view it’s a great way to showcase our new crypto CFD offerings which we’re all really excited about. Demos are usually very popular and some of the contestants are both interested and suitable to open a live account with us – that’s the cherry on top of the cake, of course.

  1. What was your initial reaction and why?


Go for it! We’ve already been courageous and determined enough to pursue the crypto space, so we may as well generate as much interest as possible by running a crypto demo contest. Cryptocurrencies are a relatively new asset class in the finance sector and we all know how volatile the markets can be – that’s what makes crypto trading so exciting. Essentially, we want people to understand what we’re offering and get to grips with how CFD trading works. We also encourage them to trial out CFD trading strategies that could potentially cut the mustard in the live markets.

  1. How is a crypto contest different from a forex one in terms of management/risk?


From a CEO’s perspective I always have risk management in mind. All traders should be aware of crypto volatility but with regards to this competition there is no risk on a demo account – just like there would be no risk if we were using a demo account for a more forex-related contest. The whole point of a demo account is to give traders the freedom and flexibility to put their knowledge to the test and make trading decisions based on extensive research – without the fear of losing out.

Both crypto and forex demo contests can be managed in a similar way. If after the demo, traders choose to open a Blackwell Global live account we’d of course highlight all the specific crypto risks and point them towards our Crypto Zone which is packed with articles, webinars and more all to do with the world of crypto trading. Our goal is to ensure we’re a multifunctional broker from whom traders can gain valuable insights. But for now, the demo contest is a fun way to attract potential new clients.

  1. Are you the first big broker to be offering it? Why do you think that is?


There are much bigger brokers out there that already offer crypto trading in one form or another, but we’re firmly focused on the derivative CFD, no wallet, no exchange, just back to basics economic exposure to a movement of ‘something’ one way or another. The reality is that most people are looking to make money for the ‘action’ not the ‘ownership’ which is where CFD trading comes into its own. When you trade CFDs you are simply making price speculations and can benefit from upward and downward market movements. As you don’t actually own the underlying asset, you don’t have to worry about exchange or wallet hacks.

As for the demo contest, the terms and conditions associated with the competition are unique to Blackwell Global. Our rules are very specifically laid out and our cash prices offer an attractive reason to take on the demo trading challenge. Essentially, those with the highest balance at the end of the competition will be crowned winners and there are four winning positions and prizes available.

  1. Do you think forex traders will naturally excel at crypto trading?


Perhaps! With both forex trading and crypto trading there are sure to be success stories and tales of ‘the trade that got away.’ Both markets are highly volatile and therefore those with experience in forex may be more geared up to expect market changes than those who are new to the trading world.

With forex trading, however, there’s so much data as well as historical trading patterns which helps put technical analysis into motion. Crypto trading on a mainstream level is still relatively new which, of course, is what makes it so attractive to those looking for new opportunities.

  1. What would be your strategy if you were entering (which of course you are not!)


That’s an interesting one. Well, the gearing is low on cryptos just 1:2, so I’d probably pick three cryptos that I had a strong view on, put on a position and ignore it for a week or two. Before implementing any kind of strategy even on a demo account, it’s essential to understand what’s going on in the world and what may have an effect on specific tokens. Look at regulatory issues, look at how countries are responding to different cryptos and be sure to understand the ecosystem of your chosen coins. All of these things will help you to assess and possibly predict the markets.

  1. Do you think it’s hard to succeed in crypto trading with the leverage rules set by ESMA?


No, it’s just going to make your returns less volatile and your investment window a lot longer. There are very few experts in this field so it’s a level playing field at the moment, just remember that you are probably in for a bit of a bumpy ride. But again, if you decide to enter the demo contest there is absolutely no risk. It’s all a bit of fun and you can decide whether or not to enter a live account with Blackwell Global later down the line.

If you want to be in with the chance of winning a cash prize and like the idea of honing your crypto CFD trading skills without risk, enter the Crypto July Demo Trading Competition today.