Are There Prop Firms For Crypto? Your Complete Guide to Crypto Funded Trading

If you're wondering are there prop firms for crypto, the answer is a resounding yes. The cryptocurrency market has exploded in recent years, and with it, a new breed of proprietary trading firms has emerged to fund skilled crypto traders. These firms offer traders the opportunity to trade digital assets with substantial capital without risking their own money.

But here's what most traders don't realize: crypto prop trading operates quite differently from traditional forex or stock prop trading. The opportunities are unique, the challenges are specific, and knowing how to navigate this landscape can mean the difference between securing a funded account and wasting time on unsuitable platforms.

In this comprehensive guide, we'll walk you through everything you need to know about crypto prop firms, how to find legitimate ones, and the exact steps to get funded.

What Are Crypto Proprietary Trading Firms?

Crypto prop firms are companies that provide capital to traders specifically for trading cryptocurrencies like Bitcoin, Ethereum, and other digital assets. Unlike traditional prop firms that focus on forex, stocks, or futures, these firms specialize in the 24/7 crypto markets.

Here's how they work:

• You complete an evaluation or challenge (usually by meeting profit targets while following risk rules)
• Once you pass, the firm funds your trading account with their capital
• You trade cryptocurrencies and keep a percentage of the profits (typically 60-90%)
• The firm takes on the financial risk while you provide the trading skill

The cryptocurrency derivatives market has grown to handle billions in daily volume, making it attractive for prop firms to deploy capital through skilled traders.

Why Crypto Prop Firms Are Different From Traditional Prop Firms

Before diving into how to join crypto prop firms, you need to understand what makes them unique:

Market Hours: Crypto markets never close. This means more opportunities but also requires different risk management strategies than traditional markets.

Volatility: Cryptocurrency price swings can be significantly larger than forex or stocks. A 5-10% daily move isn't uncommon for major cryptocurrencies.

Asset Variety: You're not limited to major pairs. Many crypto prop firms allow trading of 50+ cryptocurrency pairs, DeFi tokens, and derivatives.

Platform Options: While traditional prop firms often use MetaTrader, crypto firms typically offer specialized platforms or even allow popular crypto exchanges.

Important Note: Due to regulatory considerations, many traditional prop firms (including TradersYard) focus primarily on forex, indices, and commodities rather than cryptocurrencies. Always verify what assets a firm offers before beginning any evaluation.

Step-by-Step: How to Find Legitimate Crypto Prop Firms

Finding legitimate crypto prop firms requires due diligence. The crypto space has its share of scams, so follow these steps carefully.

Step 1: Understand the Prerequisites

Before searching for crypto prop firms, ensure you meet these basic requirements:

• Trading Experience: Most firms require at least 6-12 months of crypto trading experience
• Technical Setup: Stable internet connection, suitable computer, and familiarity with crypto trading platforms
• Capital for Evaluation: You'll need $100-$500 to purchase a challenge or evaluation program
• Risk Management Knowledge: Understanding of position sizing, stop losses, and drawdown limits
• Market Knowledge: Familiarity with cryptocurrency fundamentals and technical analysis

Step 2: Research Available Crypto Prop Firms

Start by creating a list of potential firms. Here's how to research effectively:

Create a Comparison Spreadsheet with these columns:

• Firm name
• Evaluation cost
• Funding amounts available
• Profit split percentage
• Maximum drawdown allowed
• Daily drawdown limits
• Tradeable cryptocurrencies
• Platform requirements
• Payout frequency
• Verification status

Check Multiple Review Sources:

1. TrustPilot and similar review platforms
2. Reddit communities (r/CryptoCurrency, r/Daytrading)
3. Trading forums and Discord servers
4. YouTube reviews from verified traders

Red Flags to Watch For:

• No verifiable payout proofs
• Extremely difficult evaluation rules
• Unclear terms and conditions
• No responsive customer support
• Recent establishment with no track record
• Suspiciously low evaluation costs

Step 3: Verify Regulatory Status and Legitimacy

This is critical. Many crypto firms operate in regulatory grey areas.

Check These Elements:

1. Company Registration: Look up the firm's business registration in their claimed jurisdiction
2. Physical Address: Legitimate firms have verifiable business addresses
3. Team Transparency: Real companies have identifiable team members on LinkedIn
4. Payout Proof: Look for verified payout screenshots with transaction IDs you can check on blockchain explorers

Key Questions to Ask:

• How many active funded traders do you currently have?
• Can you provide verifiable blockchain transaction proofs of payouts?
• What platform do funded traders use?
• How are funds secured (cold storage, insurance, etc.)?
• What happens if the platform experiences a technical issue during my trades?

Step 4: Analyze the Evaluation Requirements

Once you've shortlisted 3-5 firms, deeply analyze their evaluation requirements.

Compare These Factors:

Factor	What to Look For	Why It Matters
Profit Target	8-15% is reasonable	Too high suggests few traders pass
Max Drawdown	10-15% is standard	Too tight makes passing extremely difficult
Daily Drawdown	5% minimum	Crypto volatility requires breathing room
Trading Days Required	5-10 days	Ensures you're not lucky, but skilled
Holding Over Weekend	Should be allowed	Crypto is 24/7, restrictions are artificial
Maximum Position Size	5-10% per trade	Prevents excessive risk

Calculate Your True Cost:

Don't just look at the evaluation fee. Calculate:

• Evaluation cost × Expected attempts to pass (be realistic - many traders need 2-3 attempts)
• Monthly subscription fees (some firms charge these)
• Profit split percentage impact on your earnings
• Withdrawal fees and minimum payout thresholds

Step 5: Test With the Smallest Account First

Never start with the largest evaluation. Here's the smart approach:

Start Small:

1. Purchase the smallest evaluation available (usually $10,000-$25,000 account size)
2. This minimizes your financial risk while testing the firm
3. You'll learn the platform, rules, and firm responsiveness

During Your First Evaluation:

• Test customer support with questions
• Note platform stability and execution speed
• Verify rules are clearly explained and enforced consistently
• Check if the firm provides adequate trading data and analytics

Pass the Evaluation, Then Verify:

• Complete the verification process
• Make a small profit on your funded account
• Request your first payout (even if small)
• Verify the payout process works smoothly

Only after successfully receiving your first payout should you consider scaling up to larger account sizes with that firm.

Common Crypto Prop Firm Models

Understanding the business models helps you choose the right fit.

Challenge-Based Model

This is the most common model for crypto prop firms:

• Pay upfront for a challenge/evaluation
• Meet profit targets within risk parameters
• Pass evaluation and receive funded account
• Keep 60-90% of profits

Best For: Traders who are confident in their strategy and can handle evaluation pressure.

Instant Funding Model

A newer model gaining popularity:

• Higher upfront cost
• Receive funded account immediately
• Must follow strict rules or lose access
• Usually smaller profit splits initially

Best For: Experienced traders who want to skip evaluations.

Profit-Share Only Model

Rare in crypto, more common in traditional markets:

• No upfront cost
• Extensive vetting process
• Lower profit splits (30-50%)
• More like employment than independent trading

Best For: Traders with strong track records but limited capital.

What to Expect During the Evaluation Process

Understanding the evaluation process helps you prepare mentally and strategically.

Phase 1: Purchase and Setup (Day 1)

What Happens:

• Purchase your chosen evaluation level
• Receive login credentials (usually within 24 hours)
• Access to trading platform and account dashboard
• Review full trading rules and requirements

Action Items:

• Save and print all rules and guidelines
• Set up tracking spreadsheet for your trades
• Configure your trading platform and indicators
• Set calendar reminders for key metrics (drawdown levels, profit targets)

Phase 2: The Trading Evaluation (1-4 Weeks Typically)

Daily Routine:

1. Check account status before trading
2. Review overnight crypto market movements
3. Plan trades based on your strategy
4. Execute trades following risk parameters
5. Document each trade's rationale
6. Update tracking spreadsheet
7. Calculate current drawdown levels

Critical Metrics to Monitor:

• Current account balance vs. starting balance
• Distance from maximum drawdown limit
• Daily profit/loss percentage
• Number of trading days completed
• Progress toward profit target

Pro Tip: Most traders fail crypto prop evaluations due to overtrading during high volatility, not lack of skill. Bitcoin's sudden 10% move can tempt you to overtrade. Stick to your position sizing regardless of opportunity size.

Phase 3: Verification (1-3 Days)

Required Documentation Usually Includes:

• Government-issued photo ID
• Proof of address (utility bill, bank statement)
• Sometimes: proof of trading experience
• Tax documentation (W9, W8-BEN, etc.)

During This Phase:

• Firm reviews your trading behavior for consistency
• Checks for strategy that's sustainable long-term
• Ensures no rule violations occurred
• Verifies your identity

Phase 4: Funded Account Activation (1-7 Days)

What Changes:

• New account credentials for live funded account
• Same rules apply, but you're trading real capital
• Profit splits activate
• Access to payout request system

Troubleshooting Common Issues With Crypto Prop Firms

Even with legitimate firms, issues can arise. Here's how to handle them.

Issue #1: Evaluation Failed Due to Technical Error

Problem: Platform glitches, connectivity issues, or incorrect rule violations flagged.

Solution Steps:

1. Screenshot everything immediately (error messages, account status, trade history)
2. Record exact times and dates
3. Contact support via email (creates paper trail) and urgent channels
4. Reference specific rule sections from their terms
5. Request review by senior management
6. If unresolved, request refund or free retry

Prevention: Always trade with stable internet, keep backup connection, and save daily account screenshots.

Issue #2: Payout Delays or Issues

Problem: Approved payouts not received or indefinitely "processing."

Solution Steps:

1. Check payment method provided is correct
2. Verify identity documents are approved
3. Confirm minimum payout threshold met
4. Review payout schedule in terms (some pay bi-weekly, monthly)
5. After 48 hours past stated timeline, escalate to management
6. Document all communication
7. As last resort, post factual account of delays in public reviews (often accelerates resolution)

Prevention: Request small first payout to test system before accumulating large balance.

Issue #3: Unclear Rule Violations

Problem: Account closed or evaluation failed for vague rule violations.

Solution Steps:

1. Request specific trades and timestamps that violated rules
2. Review exact rule language in original terms
3. Cross-reference with regulatory guidelines for financial trading
4. If legitimately unclear, request arbitration or appeal process
5. Share factual experience in trader communities to warn others

Prevention: Before each trade, review key rules. When in doubt, ask support before trading rather than apologizing after.

Issue #4: Platform Execution Problems

Problem: Slippage, requotes, or platform freezing during high volatility.

Solution Steps:

1. Document with screenshots and trade ticket numbers
2. Compare execution with independent price sources (TradingView, CoinMarketCap)
3. Calculate financial impact of poor execution
4. Request compensation or adjustment to account
5. If pattern continues, consider it a red flag about firm legitimacy

Are There Alternatives? Traditional Prop Firms With Crypto Capabilities

While dedicated crypto prop firms exist, many traders don't realize that some traditional prop firms are expanding into crypto-related instruments.

At TradersYard, we focus on providing funded accounts for forex, indices, and commodities trading. While we don't currently offer direct cryptocurrency trading, we do offer:

• Crypto-correlated instruments: Trade indices and commodities that correlate with crypto market movements
• Flexible challenge programs: Our 1-Step and 2-Step evaluation programs with no time limits
• Up to $200,000 in funding: Scale your trading with substantial capital
• 80% profit splits: Keep most of what you earn
• Industry-leading support: Get help when you need it

Many skilled crypto traders use traditional prop firms to diversify their trading and income sources. The evaluation skills transfer between markets, and the risk management principles remain the same.

Expected Outcomes: What Success Looks Like

Let's set realistic expectations for what happens when you successfully join a crypto prop firm.

Timeline for Typical Successful Trader:

Month 1:

• Purchase evaluation ($200-500)
• Complete evaluation in 2-3 weeks
• Pass verification
• Receive funded account
• Investment: $200-500

Month 2:

• Generate first profits on funded account ($500-2,000 typical for $25k account)
• Request first payout
• Receive payment (your split: $300-1,600)
• Net Position: Breaking even to slightly profitable

Month 3-6:

• Consistent monthly payouts
• Scale to larger account sizes
• Build track record
• Average Monthly: $1,000-5,000 depending on account size and skill

Month 6+:

• Multiple funded accounts (many firms allow this)
• Established reputation
• Potential for six-figure funded accounts
• Potential Monthly: $5,000-20,000+ for top performers

Reality Check: These numbers assume consistent skill and discipline. According to industry data, only 10-15% of evaluation participants become consistently profitable funded traders. This isn't due to scams—trading is genuinely difficult.

Key Takeaways: Your Action Plan

So, are there prop firms for crypto? Absolutely, and they're growing rapidly. But success requires the right approach.

Your immediate next steps:

1. Assess your readiness: Be honest about your crypto trading experience and consistency
2. Research thoroughly: Spend at least 1-2 weeks investigating firms before purchasing evaluations
3. Start small: Test with minimum account sizes first
4. Document everything: Keep records of all trades, communications, and account states
5. Plan for multiple attempts: Budget for 2-3 evaluation attempts as you learn the specific requirements
6. Consider diversification: Don't put all focus on crypto—traditional markets via firms like TradersYard can diversify your income

Remember: The prop firm model is about proving consistency, not hitting home runs. Crypto's volatility makes this challenging but not impossible.

Ready to Start Your Funded Trading Journey?

While crypto prop firms offer exciting opportunities for digital asset traders, the fundamental skills of risk management, emotional discipline, and strategic consistency apply across all markets.

At TradersYard, we've helped hundreds of traders secure funding and build sustainable trading careers. Our challenge programs focus on developing the exact skills that translate to long-term profitability—whether you're trading forex, indices, or considering crypto markets.

Why TradersYard Traders Choose Us:

• No time pressure on evaluations—trade at your pace
• Transparent rules with responsive support
• Fast payouts when you're profitable
• Scale up to $200,000 in funding

Ready to prove your trading skills and get funded? Explore our challenge programs and join a community of serious traders building real trading careers.

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Frequently Asked Questions

Do crypto prop firms require KYC verification?

Yes, legitimate crypto prop firms require identity verification to comply with financial regulations. This typically includes government ID and proof of address. Firms that don't require KYC may be operating illegally or could be scams.

Can I trade NFTs or DeFi tokens with crypto prop firms?

Most crypto prop firms focus on established cryptocurrencies like Bitcoin, Ethereum, and major altcoins. NFT and obscure DeFi token trading is usually restricted due to liquidity concerns and risk management requirements.

What's the average pass rate for crypto prop firm evaluations?

Industry estimates suggest 5-15% of participants pass evaluations on their first attempt. Crypto evaluations tend to have lower pass rates than forex due to higher volatility making drawdown management more challenging.

Can I use trading bots with crypto prop firms?

This varies by firm. Many prohibit fully automated trading or high-frequency strategies. Always check specific terms, as bot trading that violates rules will result in account termination without refund.

How long does it take to receive payouts from crypto prop firms?

Legitimate firms typically process payouts within 1-14 days, with most averaging 3-7 business days. Cryptocurrency payouts are often faster than traditional banking transfers. Delays beyond 14 days without explanation are red flags.