Crypto trading challenges and competitions held in the crypto-exchange platforms motivate traders to indulge in trading practices. When crypto challenges are fixed along with limitless cash awards, the traders become enthusiastic. One fascinating feature of these crypto trading challenges is that the rate of the crypto exchanges will be improved in the platform thereby establishing liquidity.
The conducting of the trading challenges fosters a community-driven approach among the participants to share their experiences and thoughts on the social media platforms. The trading challenges when conducted at regular intervals enhance the demand for a particular crypto-exchange platform. This blog helps in knowing about the benefits of involving the trading challenges in the exchange platforms to grow the customer strength.
Why trading challenges are important for exchanges
The involvement of trading challenges is necessary for a crypto-exchange platform to keep traders interested and engaging in using the crypto-exchange platform. The contests and challenges help traders to invest in their skills and prove themselves efficient in trading. It helps traders implement their one trading strategies without investing any money and falling into risk. The competitions and challenges bridge the people to connect regarding the trading opportunities and market conditions in the crypto industry. In all, new users tend to use the platform along with the improvement in the brand.
Real-world examples
There are successful crypto-exchange platforms like Binance that have attained a massive reputation among traders.
Binance conducts trading challenges through trading options like margin trading, futures trading, yield farming, and so on. It also allows users to join freely to some extent. It makes the traders highly curious to challenge other traders for a specific period. When traders win, they are gifted with promotion levels and crypto coins like NFTs to showcase their skills. By continuous participation in the challenging trading environment, efficient trading strategies will be cultivated in the traders’ minds so they can use them in the future. Binance also uses a ranking system to know the scorecards of every trader participating in the trading platform.
How has Binance enhanced user engagement through trading challenges?
After incorporating the feature of trading challenges in the crypto-exchange platform, Binance was able to attract a wider customer base.
Improved brand visibility
When different competitions are held in the trading platform, the brand and the online presence of that specific trading platform are improved. It seeks the attention of several traders who are even new to the crypto market. They get inspired to start their own trading business after attaining experience in challenging trading by building competition with others.
Rewards and promotions
Binance sets up several rewarding opportunities for traders to achieve high-quality trade within a specific period. Binance is a platform that conducts challenges daily and rewards great achievers. The rewards and recognitions inspire the traders to achieve more by using the platform more and more.
Gamification features
The platform incorporates gaming elements such as leaderboards, levels, and challenges, which help traders achieve an efficient trading activity. These gaming features are likely to attract many traders to the platform.
OKX
OKX is another trading platform that has attained success in attracting more customers to use the platform.
It uses certain trading challenges to increase its customer base. Here is the break-down of it’s list:
Incentives:
Traders are awarded incentives when they attain specific trading points. Incentives usually motivate traders to engage in trading activities.
Diversified trading challenges with prize pools:
The trading platform is gifted with diversified trading challenges that enable traders with different skill sets to participate in the trade. In addition, the traders are exposed to prize pools to receive rewards for winning cash prizes.
Allow copy trading
OKX allows traders to follow the successful trading practices used by other traders. By implementing those trading practices, they can also attain rewards if their trading ranks go higher.
Key features of effective trading challenge
Customizable leaderboards:
The customizable leaderboards are used to rank the traders in the display board when they win a competition with their co-trader. These leaderboards also express the credibility of the trader and their efforts in attaining a successful trade.
Flexible reward system:
There are a variety of reward systems available to reward traders for their performance. They are designed based on the toughness level of the trading challenges set by the owner of the trading platform. When flexible reward systems are enabled, the growth of the traders using the platform will be also enhanced.
Referral integration:
Referral integration is a process in which traders can earn money while referring other traders to a specific crypto-exchange platform. It provides opportunities for traders to earn high commissions by referring their trading partners toward the trading zone.
How to Launch a Trading Challenge on a Crypto Exchange
Launching a crypto-exchange platform with trading challenges requires advanced matching engines with essential features. They include:
Research and planning
Initially, for designing a crypto-exchange platform with trading contests, a proper plan should be initiated as per the target audience. The customer requirements need to be gathered first. A plan is necessary to be made over the requirements of the customers on the setting of the trading contests based on their skill set and trading experience.
Choosing the right technology
It is essential to choose the right technology like an advanced matching engine. An advanced matching engine performs a high number of transactions in seconds. It has also a high throughput time along with high latency. It uses advanced risk management strategies like a stop-loss order mechanism.
Including the core features
Core functionalities can be included in the trading platforms like multiple currency support and order book management. The demo contests are also held along with effective competitions to attract many users.
Developing a rewarding mechanism
This step forms the crucial step in which certain reward levels are designed to motivate the traders. The contestant levels are framed to test the trading skills. As a part of winning the challenges, the traders are rewarded with cash prizes.
Security and risk development
Security and risk development features need to be essentially incorporated to ensure a secure trading environment for the users. Two factor authentication and know your customer security strategies are used. The security tools can be used to secure the trader’s credentials.
Why Choose CoinsQueens as Your Preferred Crypto Exchange Development Company?
Out of several crypto-exchange development companies, Coinsqueens takes pride in developing a cost-effective and reliable Crypto Exchange Development Company. Our concept of including trading challenges has inspired our traders to access our services. We have designed plenty of rewarding mechanisms to satisfy the thirst of the traders. Our motto behind the holding of competitions is to motivate a trader to achieve a certain trading volume within a stipulated period. Through our effective services, we offer a wonderful chance to beginners who don’t have prior trading knowledge. We take the risk of losing money by simply allowing traders to participate in the trading competition without investing any money.
Final thoughts
Conducting crypto-trading challenges is a new way of enhancing user engagement in the crypto-exchange platform. It helps traders to get trading experience without any capital investment. Even though the crypto world is competitive due to liquidity factors, trading challenges set up a space for winners who come up with effective trading strategies. The blog resonates with the aspect of investing in crypto-trading platforms that include competitive features. If you like to access affordable crypto-exchange development services, just connect with us!
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