Crypto Gets Competitive: Is Gamified Trading the Future?

Crypto Goes eSports: Gamification a Risky Trend?

Korea Blockchain Week recently hosted Perp-DEX DAY, a live, competitive crypto trading event. Think eSports, but with real money on the line, as traders battled it out on decentralized exchanges (DEXs) trading perpetual futures.

But is this gamification of finance a revolutionary step forward, or a risky gimmick?

What is a Perp-DEX?

A decentralized exchange (DEX) allows peer-to-peer crypto trading, bypassing traditional intermediaries. A perp-DEX facilitates the trading of perpetual futures on-chain, using smart contracts to manage trades automatically.

High Stakes, High Entertainment, High Risk

Perp-DEX DAY saw teams of traders compete for the top spot on the leaderboard, their profit and loss displayed in real-time to a live audience. Commentators added to the excitement. While entertaining, this high-pressure environment may not be conducive to sound investment decisions.

The Double-Edged Sword of Gamified Investing

The trend towards gamifying finance, with features like leaderboards and copy-trading, aims to attract new investors and encourage engagement. Gamification can:

• Lower the barrier to entry for new investors.
• Encourage saving through automated contributions.

However, the same features can also lead to:

• Addictive trading behaviors.
• Increased risk-taking.
• Reduced due diligence.

Key Takeaways

• Competitive crypto trading events are emerging, but carry significant risks.
• Gamified investing apps can be beneficial but also encourage impulsive decisions.
• Financial literacy is crucial to avoid the pitfalls of gamified trading.
• Consider consulting a financial advisor to develop a long-term investment strategy.

Remember, most day traders lose money. A buy-and-hold strategy remains a sound approach for many investors.