Crypto prop trading gives skilled traders access to firm-funded capital to trade digital assets like Bitcoin, Ethereum, and altcoins. Instead of using your own money, you trade with the crypto prop firm’s capital and share a portion of the profits, often keeping 70% or more.
When you trade with a crypto prop firm, you go through an evaluation process to prove you can hit profit targets while managing risk. Once you pass, you’re awarded a funded account, typically starting from $10,000 and scaling up to $100,000, $500,000, or even millions.
Unlike hedge funds or banks, prop firms don’t manage client capital. They take on the risk themselves, earning from challenge fees and a share of trader profits. If you consistently perform well, your account may be scaled up for larger trades and higher earnings.
Getting funded starts with a trading challenge. You pay an upfront fee, trade in a simulated environment, and aim to meet profit goals (usually between 8% and 15%) without breaking drawdown or risk limits. There’s various models, but one step or two step evaluation processes are the most common, with instant funding accounts becoming more and more popular, too.
An example of a two step challenge is:
Only traders who pass both stages receive a funded account. This system filters out reckless or lucky traders and helps firms find those with real skill.
Prop firms are selective. Their business model relies on finding consistent, low-risk performers – not gamblers. Most use a structured boot-camp-style evaluation to separate skilled traders from the rest. Challenge fees (often starting at $50 for small accounts) serve a dual purpose: generating revenue and discouraging uncommitted applicants.
Firms raise capital internally or through investors and reinvest it into funded accounts. They also build advanced trading tools and algorithms tailored to crypto volatility, giving traders the edge they need to profit in fast-moving markets.
Choosing between a crypto-only and a multi-asset prop firm depends on what you want from your trading experience, depth in one market or the ability to move across multiple.
Crypto-only prop firms are fully focused on digital assets. They tend to offer a broader range of cryptocurrency pairs, often supporting 40 or more coins, including lesser-known altcoins. Their platforms and tools are usually optimized for crypto’s unique characteristics, like high volatility and 24/7 trading. These firms may offer higher leverage on crypto positions, sometimes up to 1:10, and their support teams are typically more familiar with blockchain-specific issues.
In contrast, multi-asset prop firms offer access to a broader range of markets, including forex, commodities, indices, and stocks alongside crypto. This setup allows traders to switch between asset classes based on market conditions or personal preference. These firms often have longer track records in traditional finance, with more established risk management systems and educational resources. Their larger funding pools can also mean different scaling structures and potentially more diverse payout options.
Every crypto prop firm has its own trading rules to protect capital, and breaking them can get your challenge or funded account revoked. Common restrictions include:
Each crypto prop trading firm offers its unique advantages to traders looking to dabble with or have expertise with digital assets, from bigger leverage options, to firms offering a bigger selection of coins to trade. Below are the top ranked options from our list of the best cryptocurrency prop firms.
BrightFunded is the leading crypto prop firm, offering high leverage, over 40 crypto pairs, and scalable funded accounts. With profit splits reaching up to 100%, it provides a strong option for traders aiming to grow their accounts and maximize returns.
BrightFunded could be perfect if you prefer high-risk reward strategies and like to trade more coins aside from the bigger ones. The Trade2Earn loyalty program rewards traders with consistency through free challenges and improved terms, including higher payouts.
Tailored for crypto traders, this prop firm provides institutional-grade pricing and flexible challenge options made possible by being backed by DNA Markets.
Broker-backed liquidity: Tight spreads and high liquidity are made possible through DNA Market’s trading infrastructure.
DNA Funded is ideal for prop traders seeking professional-level spreads, liquidity, and execution. Availability of weekly payouts and transparent rules make them among the top choices for crypto trading.
The availability of class-leading profit splits of up to 95%, no commissions for trading cryptocurrencies, and strong support for algorithmic trading strategies make them stand out in crypto prop trading.
EA-driven prop traders will be at home with FundedNext. With minimal trading costs, challenges with no time limits, and the potential to scale up to $4 million, makes them a strong contender.
Blueberry Funded offers the widest range of crypto instruments available to trade. Comes with a quick 7-day challenge, consistent scaling program, EA trading support, and stable trading conditions are all factors traders are looking for, making them a top contender.
Algorithm-focused traders who look for bigger crypto trading options. Blueberry Funded also offer a 7-day challenge, with fixed 1:2 leverage to balance risk control with trading power.
While it is the exciting part, crypto prop trading is not all about chasing those big profits. Risk management is what keeps a successful prop trader in the game in the long term.
Crypto trading is known to be very volatile, where one random tweet from some tech billionaire can send prices surging or plunging within minutes, making volatility both a blessing and a curse for crypto traders. As a result, prop trading firms have developed strategies to contain the wild price swings that often come with cryptocurrencies.
These crypto-focused firms are especially strict with position sizing. Placing a big chunk of your trading account into a single trade, regardless of how sure you are of a “pump”, is not possible. Individual positions are usually capped at around 1%-2%, so you will not be wiped out even if the trade goes against your plan. In extreme times of market volatility, these firms may temporarily reduce available leverage or even restrict it altogether.
Leverage in crypto proprietary trading firms could be extremely useful, but if misused, it can also be extremely dangerous. Trading firms can offer leverage starting from 1:5 to 1:10, with some offering even higher levels, allowing you to trade positions much larger than your funded account, allowing you to trade a $100,000 position with only a $10,000 account with a 1:10 leverage. This will magnify potential gains by ten times, and also losses by ten times.
Various guardrails are being implemented to keep traders from taking full-on risks with leveraged trading. Cryptocurrency prop trading generally has drawdown limits of 5% to 10%, and risk-per-trade limits are also capped at around 1% – 2% per position to help in this.
Prop traders generally have a higher risk appetite than the average retail trader, but trading with the firm’s capital, these risk guidelines can help improve trading performance in the long term by enforcing trading discipline, which is hard to develop when trading alone.
Part of the broader risk management strategy, and depending on the trading firm, trading restrictions are in place to prevent catastrophic losses when markets go on wild swings. Many firms restrict news trading, scaling, and high-frequency trading, with some outright banning them. These are some of the most unpredictable and riskiest strategies, making these rules non-negotiable, making it crucial for you to double-check what strategies are allowed and not allowed.
Is crypto prop trading for you? The answer to that question depends on your trading goals, experience level, and your ability to manage risk properly. Here we will discuss things you need to know before jumping headfirst.
Prop trading in general is beneficial for experienced traders who have already developed working trading strategies, but do not have the trading capital necessary to have a significant impact on their desired profit levels. Here are the typical trader profiles likely to succeed with prop trading:
Before you start prop trading and purchase a challenge, it’s vital to evaluate the evaluation process, or you are risking wasting time and money
Prop trading lets you trade with a firm’s capital instead of your own. To qualify, you must pass an evaluation challenge that tests your ability to hit profit targets and follow risk rules. If successful, you’re awarded a funded account and keep a portion of the profits, often up to 90%. The firm absorbs the risk, but you must follow strict trading rules to maintain the account and qualify for scaling opportunities.
No, prop trading is legal. Many financial firms, including independent crypto prop firms, operate within regulatory boundaries. However, not all firms are created equal, traders should choose firms with clear terms, transparent policies, and a strong reputation (broker backed firms are considered the most trustworthy). Always review the firm’s rules, compliance practices, and trader reviews to avoid scams or misleading promises.
A trader passes a $50,000 challenge and gets a funded $50,000 account. They spot a trade, risk $500 (1%), and make $1,000 in profit. With an 80% profit split, they keep $800 and the firm keeps $200. The trader didn’t risk personal capital, and consistent performance could lead to account scaling. This model rewards disciplined risk management while giving traders access to larger capital than they’d typically have on their own.
Yes, prop traders can earn steady income if they’re consistently profitable and follow the firm’s rules. Success depends on your trading strategy, discipline, and ability to manage risk, not luck. Many traders turn prop trading into a full-time career, especially with firms that offer high profit splits, low fees, and scaling opportunities. However, it’s not a shortcut to wealth, long-term results require experience, emotional control, and commitment to continuous improvement.
