More prop firms offer crypto CFDs - Bitcoin, Ethereum, altcoins. We examine the rules, limits, and risks specific to prop accounts with cryptocurrencies.
Just in 2022, cryptocurrency trading on prop accounts was a marginal phenomenon. Today most major firms - FTMO, FundedNext, BrightFunded, FxiFy - offer crypto CFDs as part of their offering. The reason is simple: the BTC and ETH markets generate volume and volatility that attracts a new generation of traders.
But crypto on a prop account isn't the same as crypto on a regular account. The differences are significant.
FTMO: Selected crypto pairs (BTC/USD, ETH/USD, LTC/USD, XRP/USD). Trading available 24/7 except during specific technical maintenance windows. Crypto spread significantly higher than forex - BTC/USD spread can be $30-$50 equivalent vs. $0.10-$0.50 on EURUSD.
FundedNext: Similar crypto CFD offering. Note leverage conditions - on crypto often lower than forex (1:2 to 1:5 vs. 1:30 on major pairs).
BrightFunded and FxiFy: Check current offering on firm website - crypto is being expanded at both firms and conditions may change.
Key difference: Firms offer crypto CFDs - not actual cryptocurrencies. You don't "own" BTC on a prop account, you trade a contract on its price. No crypto withdrawal possible, no private keys.
1. Volatility vs. Drawdown
Bitcoin moves 5-10% within a single day during normal volatility. ETH can do 15-20% in response to major news.
With standard prop limits (5% daily drawdown, 10% max drawdown), one bad BTC position can eliminate the entire daily buffer within one hour.
Example: $100K account, long BTC 0.1 BTC (value ~$7,500 at BTC=$75,000). BTC drops 8% = $600 loss = 0.6% of account. Safe. But long 0.5 BTC = $3,000 loss = 3% of account. One move = 60% of daily loss limit.
2. Price Gaps
Crypto doesn't sleep. Weekends often bring the largest moves - and many prop firms calculate drawdown continuously, 24/7. A trader holding a large BTC position Friday evening risks hitting a weekend gap with no ability to react.
3. Higher Spread and Swap
Transaction costs on crypto are many times higher than forex. For an active crypto trader on a 100K account, monthly spread+swap costs can consume 5-8% of the account - before generating any profit.
4. Market Manipulation and Whale Moves
Cryptocurrencies - especially outside the top 5 - are susceptible to deliberate price moves by large players. On a traditional account this is an acceptable risk. On a prop account where the margin for error is limited by drawdown rules, a "whale dump" can end an account in an hour.
Swing trading with wide stop losses Instead of short-term scalping, positions held 2-7 days with wide stop losses adjusted to BTC/ETH volatility. Fewer trades = lower spread costs.
Correlation with traditional markets BTC increasingly correlates with NASDAQ and geopolitical risk. A trader understanding macro markets has analytical edge in timing crypto entries.
Avoiding altcoins On prop accounts, stick to BTC and ETH. Altcoins have drastically higher spread, lower liquidity, and more manipulation - disproportionate risk for an account with limited drawdown.
Position size - conservative Rule: maximum 0.5% of account per crypto trade (vs. 1-2% on forex). Crypto volatility is 5-10x higher than major pairs - position sizing must account for this.
The answer depends on the trader's experience and strategy. Crypto on a prop account can generate high profits with proper risk management - but the margin for error is significantly smaller than in forex.
If your crypto strategy is proven on your own account with a performance history, transferring it to a prop account may be justified. If you're new to crypto or don't have a proven strategy - forex remains the safer space for prop accounts.
Want us to manage your prop trading account?
See PropGate packages