Poker players who’re crossing over to cryptocurrency trading are seeing astounding success, lately. For instance, a trading team comprising of poker players, led by poker star Mike McDonald landed themselves in the top 3 list in the recently concluded World Series of Trading (WSOT). A total overlay prize pool of $1.27 million in cryptocurrency was paid out to the winners of the inaugural edition of the global crypto trading competition powered by Bybit, in which 135 teams and 12,368 participants joined from across the globe.
The WSOT is one of the fastest growing cryptocurrency derivatives exchanges, with more than a million registered users. The gobal event is open to traders worldwide where Bybit’s platform is available. The ranking system of WSOT is based on the profit/loss ratio, regardless of trading volume, thus paving a level playing field for all participants.
As we all know, poker is a game that tends to reward strategic thinking, metal endurance and emotional resilience – traits that happen to work equally well for crypto trading. Practiced with discipline, these traits can very well generate excellent results in both fields. And here we’ve mentioned some common traits of winning poker players and crypto traders as well:
- +EV Decisions – Trading strategy deals with risk/reward ratio, similar to how poker players make expected value calculations for each hand when they consider whether to bet, check, call, raise or fold.
- The Tilt Factor: The calm and imperturbable demeanour which is synonymous with poker players helps them to avoid tilt, same goes for traders, when they are able to think and trade without giving in to impulses.
- Choice of Hands: In poker, just like crypto, you can’t play your cards randomly. You have to gauge your surroundings, understand the situation, process the chances of winning and then decide whether you want to fold or play further. Read the charts like you would interpret the body language and tells of your opponent, and plan your steps based on what is better suited for you.
- Bankroll Management: Even the best poker player or crypto trader can go through a lean spell. Knowing how to manage your finances is essential, to ensure that you always have funds available to trade effectively and securely.
Bybit CEO Ben Zhou states, “If you’re a beginner in crypto trading, the gurus will advise you to research thoroughly about the types of crypto assets, not putting all your eggs in one basket, and trading per your risk appetite and bankroll management needs. It’s similar to how a beginner in poker would typically study the game: up skill, start with low-level stakes and take calculated risks while devising strategies that suit them best. Similarly, we have been putting a lot of our energy into educational content where we show our clients how to properly manage risks and perform technical analysis.”
Mike McDonald also comments on the same, “A lot of poker players are good at making financial decisions while limiting the role that emotion plays – that would be one of the skills that transfers particularly well to trading. There will be times when crypto prices will hit the roof or post massive dips. Do you follow the herd or stick to your own strategy? Just like in poker, the choice is yours. Jump tables or stick to yours and play the game skillfully.”