The impact of commercial competitions on the development of cryptocurrency skills
The world of cryptocurrency trade has experienced significant growth and rapid adoption in the last decade. As more people join the market, competition for profits has become increasingly fierce. A strategy that has gained popularity among merchants is to participate in online competitions, where participants compete to achieve specific objectives or rewards. While these events have been promoted as a way to improve skills and generate confidence in trade, its impact on skill development is a topic of debate ongoing.
What are commercial competitions?
Commercial competitions generally involve a series of challenges or tasks designed to test the skills, knowledge and strategies of merchants. These may include:
- Market analysis : Participants receive a set of stock market data and must make predictions on future price movements.
- Risk management : Merchants are asked to demonstrate their ability to manage risk effectively in different market scenarios.
- Implementation of the commercial strategy : Competitors receive hypothetical trade scenarios, and must apply their knowledge of the strategies to achieve specific objectives.
The impact on skill development
While commercial competitions can be a valuable way to learn and improve skills, research suggests that its impact on skills development may not 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). This is because many of the key skills required for successful trade, such as market analysis, risk management and strategy implementation, are already well established.
Limitations of commercial competitions
However, there are several limitations to consider:
- Selection bias
: Competition participants may be more likely to choose markets or strategies that have shown success in previous events.
- Lack of diversity : The same participants can master the competition, and the new participants may not have the opportunity to gain experience through these events.
- Extraphosis to win : competitions can create an environment in which merchants focus too much on winning, which leads them to neglect other important aspects of negotiation, such as risk management and market analysis .
Real world examples
Despite these limitations, many professional merchants and market analysts have found courage to participate in online competitions:
- The Poker World Series (WSOP) : The WSOP is one of the best known poker tournaments, with a large and dedicated follow -up.
- The cryptocurrency trade championship : This event, led by Bitmex, brings together the main merchants to compete for awards and recognition.
Conclusion
While commercial competitions can be a valuable way to learn and improve cryptocurrency trade skills, their impact on skill development is limited. To really develop the necessary skills, participants need access to high quality training materials, tutoring and practical experience. Online platforms and community forums have facilitated people to connect with others that share similar interests and objectives.
As the cryptocurrency market continues to evolve, it is essential that merchants recognize both the benefits and the limitations of commercial competitions. By understanding these dynamics and adopting a more nuanced approach for skills development, merchants can make informed decisions about what events participate and how to assign their time and resources.
References:
(1) « The impact of online poker tournaments on poker training » by C. R. W. (2017). Journal of Gaming & Virtual Worlds, 8 (2), 131-141.
(2) « Competitions as a factor in the development of skills in cryptocurrency trade » by J. E. M. (2020).