The Bitfinex exchange has launched the “Paper Trading competition”, a contest in which traders compete to win a prize pool of 10,000 Tether.
The competition is named after Rey del Papel. The challenge is “virtual” in the sense that traders will have to prove their skills by using demo accounts, in which they will not invest real money but just simulate trading operations.
From July 15th, 2020 and until July 29th, 2020, the participating traders will compete for generated volumes and profit & loss (P&L). Volumes and P&L will be weighed equally.
In addition, Bitfinex explains that:
“‘Both volume and P&L dominance will be calculated relative to total volume and total P&L, respectively. While users can refill their PT accounts as many times as they like, a user’s overall P&L will be calculated by the internal rate of return (IRR). Bitfinex will also monitor for market abuse, such as wash trading, and ensure that users are unable to game the system to boost their P&L”.
To participate users must be at least 18 years old and have a PT account. To create a PT account simply go to the sub-account section and set it up for paper trading.
The top 10 in the standings will split the prize money. The maximum payout is up to 5,000 USDT.
What is paper trading
Paper trading is a simulated or virtual trading activity. It serves to understand how the industry works, but without investing real money. It is especially suitable for beginners.
It is called “paper” because novice traders usually write their trades on paper before initiating them.
However, Bitfinex’s paper trading competition is aimed at experienced traders, though they compete without the risk of losing money. However, they can earn up to a maximum of 5,000 Tether ($5,000) if they can prove that they are better than others.
The CTO Paolo Ardoino commented:
“Rey del Papel is a fun way for our users to improve their trading skills within a competitive yet safe environment. Our users can also take this opportunity to discover all that the Bitfinex platform has to offer. We look forward to crowning the king of paper trading”.
In fact, the challenge has been launched just days after the creation of Bitfinex’s new demo account feature.
The competition is a way to promote the new feature of Bitfinex but also to discover the many capabilities of the platform.