What Is Crypto Prop Firm Trading? (Everything You Need to Know)

Added: 2026-05-03

[00:00:00]So recently I've been making a lot of videos on prop frames on this YouTube channel, most especially crypto prop frames. And from the feedback I've been getting from all of these videos I've made uh recently, I've come to realize that so many of you don't understand how profit.

[00:00:21]No, we also have crypto prof. Well, that is why I'm making this video to explain everything you need to know about crypto prop frames and how they work. Because if you don't understand how they actually work, then it means that you won't even understand anything from my prop frame video. So, I advise you to watch this video to the end so that you don't miss any important information.

[00:00:41]And by the end of this video, you will definitely understand what crypto frame trading is, how it actually works, how you can actually get paid, and how to pick the right prop frame, and definitely how to avoid getting scammed.

[00:00:54]So, with all of this being said, let's get right into the video.

[00:01:00]Okay, so what is a prop firm? Now, in simple terms, a prop firm, which is actually short for proprietary trading firm, is a company that gives traders money to trade. That is it. That is the simple version of what a prop frame is.

[00:01:14]Now, if you're using a prop firm, you don't use your own capital. You only use the capital provided by the prop firm and then in return, you actually share a percentage of the profit you make with that account. Now, why would a company actually do that? Why would a company actually give you capital to trade? Now, it is simple. Now, a prop frame only makes money when you make money and they also make money actually when you lose your account. So they make money in two ways but basically they also make money when you make money. Now think of it like this. Now let's say for example you are a really good footballer. Now I want to explain what a prof is in another way so that you can understand better. Now like I said imagine you are a really good footballer but you don't have a football boot. You don't have maybe a good football pitch. You don't even have a team. And then let's say a club spot your talent and they say okay come and play for us. We give you everything you need. We give you the football boot everything you need. And then when you win, we split the prize money. So that's basically what a prof does for traders.

[00:02:11]So instead of you saving up to maybe 500,000 naira, 1 million naira, even $1,000 to trade with your own personal money, a prof gives you capital like $10,000, $50,000 or even $200,000 account and then you trade it, you make profit and you get paid. So that is what a prof. Now, if you understand what a prom is from this short explanation I've just given you, please let me know in the comment section of this video.

[00:02:42]Now, the next thing I want to talk about is how it actually works in practice.

[00:02:47]That is how does prop frame trading work. So, now you understand what a prop frame is. Now, how does it actually work in practice? So, I'm going to like give you a basic flow. Now the first thing you do is basically to sign up with a crypto prof of your own choice. Now once you sign up and you want to get an account, you have to pay a one-time fee to access what is called a challenge or an evaluation. Now this fee that you pay is actually between let's say $20, $50 to a few hundred depending on the account size you are getting from that prof. And then once you get this account, you can now go ahead to trade a demo account to pass the challenge and to prove that you can actually trade profitably without blowing the account.

[00:03:27]And this challenge can also be in one phase or in two phases depending on the prof you are using. And also if you pass this challenge you get funded which means that you get access to real capital to trade. Now once you get access to capital to trade on the funded account you now go ahead to make profit and then the profit pays you your own share from that profit. Now there's something important that I want to clear about this prof trading especially from the comments I've been getting from um most of my videos I've been making. Now you see in most crypto professors you are not trading a live account. You're only trading a demo account. You're not trading real money. It is just a demo account. It is when you now get funded and you now make profit. Now those profit you are making they actually real money that you can withdraw. So the payout you're getting is real but the account you are trading is just a demo account. Please, I just want to clear that so that you can understand it. It is when you now get to the funded stage and you make profit. That profit you get, like I said, is what you can now redraw. That is your payout. I hope that is clear. Now, I just want to clear that because I've been getting uh comments like that or questions like that from my previous videos.

[00:04:39]So, now I've explained what a prof. I've explained how it works. Now let's break down the evaluation process and how you can actually get funded because this is where most beginners actually get confused. Now you see when you buy a challenge from a prop firm you are given a set of rules that you must follow and a profit target that you must meet. Now I'm going to show you an example with trader prop frame so that you can see the rules and the target that you are given. I will just be using this as an example. The rules and target you get from different prof. So I will only be using this one as an example. So right here in front of me is my iPad and this is the homepage of the IR trader profit.

[00:05:18]Now if you scroll up if you come here to where you have the rules. Now like I said earlier when you get a prof challenge you are given rules and targets that you must meet. So on trader prof you have one step account and you have twostep account. So onestep account means that you only need to pass one phase. Once you pass that phase you go straight to the fun stage. If you're using two-step account, it means that you only need to pass two phases. You pass phase one. Once you pass phase one, you go to phase two. Once you pass phase two, then you go to the full net stage.

[00:05:45]Now, the difference is that for onestep account, they are always expensive or they are more expensive than two-step account. That's another thing you need to take note of. And another difference is that for two-step account, they are always easier to pass than onestep account right there. So, you need to take note of that. But let's say for example, you want to use two-step account or twostep challenge. Yeah, the rules that you are given. So they give you a trading period. For trading period, it is unlimited, which means that you can trade for as long as you want. Now the next one is minimum trading days. Minimum trading days means that for this first step, you must trade for at least 10 days. For the second step, you must trade for at least 5 days. Now the next rule is the stop-loss obligation which is years yes. Now what this means is that you must set stop loss for all your trades. Now this is only on trader. On some other program frames it is not compulsory. So for example on programs like breakout and crypto fund trader I know it is not compulsory to set stop loss but you can see right here for trader it is compulsory. So this is why you need to actually go through the rules for any profit account you are using. Now the next one is where you have daily draw down. For daily draw down right here it is 5% which means that you must not lose more than 5% of that account in one day.

[00:06:55]And then the maximum loss is 10%. It means that you must not lose more than 10% of that account overall. Once you lose more than 10% you lose the account and then you have the profit target which is 10% for the first phase and then 5% for the second phase right there. So for the first phase you must meet 10% profit of that capital you get and then once you do that you go to the next phase and then on the second phase you must have 5% profit to go to the funded state. So it's when you now get to the funded state that you can now start making profit. I hope you get it.

[00:07:24]So these are the rules for IRO trader.

[00:07:26]This is just like an example and these rules can differ based on the prof you are using. So on crypto fund trader it is different on breakout prof and so many other crypto profess out there. So again you must always make sure that you go through these rules and the target before you actually go ahead to get this prof. So in summary always make sure that you check the rules of any prof you are using before you go ahead to buy it.

[00:07:49]And once you get the account and you eat the target and you stay within the rules and you go ahead to pass it and you get to the funded stage. It is simple as that but it requires real discipline.

[00:08:05]So now that we've talked about the rules and the targets you need to check out on any prof you are using the next part I want to talk about is the money part.

[00:08:13]Now you see when you get funded on any prof you are to trade the prof's capital and then when you are profitable you get a cut or a share of those profit that you make. So that is what is called profit split. That's basically what it means. And most crypto professors out there, they offer profit split starting from about 7030 or 8020 in your favor.

[00:08:34]And some even go as high as 9010. So what that means is that let's say for example you are using a prof 7030 profit split. What that means is that you take 70% of whatever profit you make at the fun stage and then the prof takes 30%.

[00:08:49]And if it's 80/20 profit split, it means that you take 80% of whatever profit you make at the funded stage and the prof takes 20%. So let's for example you get a 100k challenge account and you get funded and let's for example you make let's say $5,000 profit on that account.

[00:09:07]Now if you're using a prof given 8020 profit split, it means that you take 80% of that profit which is $4,000 and then the prof take the remaining $1,000. I hope you get it. Now, another thing that you need to know when it comes to payout on preference is that some prof is only after 30 days. It can go as high as 45 days for some prof. Now, the only crypto prof with your money every day or that allows daily payout is Breakout Prof. So, on Breakout Prof, they allow you to withdraw your money any day, anytime.

[00:09:50]Now, let's talk about some of the top crypto preference that we have out there right now because they are quite different out there and they are not all the same. So, here are some of the major crypto professors I've talked about on this YouTube channel. Now, the first one is Breakout Prof. Now, you see this one is one of my top recommendations. They have the easiest rules. If you watch my video about breakout prof, you will know that they have the easiest rules when it comes to crypto professors. They are also crypto focused. That means that you can only trade crypto on their platform.

[00:10:20]So, if you're a crypto trader, then this one is good for you. And like I said earlier, they allow daily payouts. And if you want to try them out, you can also use my discount code FEM. I'll put it on the screen to get a discount for yourself. And I also put the link in the description below. So, that's the first one. Now, the second proper is bright funed. Now this one is another strong option for crypto traders and they also have a good reputation in the crypto community. They have reasonable draw down rules and they also have good profit split. I think when it comes to profit split they are one of the best too. So that's the second one. Um the third one is crypto fund trader. You see this one is another legit prof in the crypto space. Uh this was actually the first crypto prof I ever tried out and this was like some years ago and it opened my entry into the prof industry and I also have like a dedicated video about the review of crypto phone trader in case you want to check it out or you want to watch the video I'll put it in the description below. I'll also put the link to also get an account with them in the description below. Now another one which is number four is I trader. You see trader was actually the second prof I tried after crypto fund trader and Iro trader is really really good and they have one of the best rs and the best deals in the crypto prof industry and I have made so many videos about trader prof on my YouTube channel and just in case maybe you want to try them out. You can actually get 10% discount on any account you get on trader prof if you use fmy 10 as your promo code. I'll put it right here on the screen. Just use fee 10 as your promo code and you get 10% discount. I'll also put the link to get it in the description below. So these are my top crypto prof at the time of making this video and right now new crypto profiles are launching every day.

[00:12:06]But these are just the ones I've tried out myself and that is why I can only speak for them. But as I try out more crypto profiles out there, I will definitely let you guys know on this YouTube channel. So make sure you actually subscribe to the YouTube channel and turn on the notification bell on the channel.

[00:12:26]So now that I've just mentioned to you some of the top crypto profiles we have out there and with so many options, how do you now choose the best prop frame for you? So here's what I personally look at when I'm evaluating a prop frame. Now the first one is the flexibility of the rules. Now does the prop frame allow the way you trade? Do they allow news trading? Can you be able to hold trades overnight? Can you swing trades? You need to check for all of these things and then match the rules to your own trading style, not the other way around. So let me explain what I mean by this. So let's say for example, you are the kind of trader who does news trading. That means that you need to make sure you don't use a prop frame that is against news trading because there are different prop frames that are against news trading. Unless for example, you are the kind of trader who list trades for multiple days, then you need to avoid prop frames that are against that. So again ensure that the prof you use is not against your style of trading. Now the second thing I always watch out for is the profit split percentage. Now you see personally for me anything below 70% in your favor is not good or better still just look for profits that will give you 80% and above in your profit split. Now the third thing to look out for is payout reputation. Now you see this one is big.

[00:13:39]You need to check if the prof has actually been paying it traders. You can check for YouTube reviews. You can check on Twitter, you can check on Reddit, and don't just fall for all of these random marketing screenshots you see on Instagram or YouTube or Twitter or even Tik Tok. Now, another thing you need to look out for is the challenge fee versus the account size. You need to check what is the ratio. So, for example, a $200 fee for maybe a $10,000 account is different from a $200 fee for a $5,000 account. What you need to look out for is the value you are getting from that account. So for example before I pick an account on any prof I always compare the account across different prof which one is best for me and don't always think that um because a prof is cheap then is better for you. That is not always true.

[00:14:25]So please always be careful. Now another thing to look out for is the support and the community. Does the firm have responsive customer support? Do they have an active Discord community? And when something goes wrong will you be able to reach out to someone? All of these things are very very important.

[00:14:41]Now, another thing you need to check out for is the track record of that prof. You need to check how long they have been operating because a frame that has been around for like 3 4 years is more credible than the one that was just launched like a month ago or 2 months ago. So, don't just go with whatever is trending or whatever you saw on maybe one YouTube ad or on Instagram. Always do your research and I'll make it easier for you because I've done so many videos on this YouTube channel covering the top crypto prop frames out there. And like I said earlier, I'll put the links to this videos in the description below or just feel free to ask me for any prof video you want. I will reply to your comments with the link to that video.

[00:15:23]Now the next thing I want to talk about is how to avoid prop frame scams. Now you see this section is actually important because as the profer space is growing so many scams are also growing with it and I don't want you to fall for any scam. I don't want you to lose your money to any prof. So I'm going to be talking about the red flags you need to watch out for when you are picking a prof. Now the first one is that they make it impossible for you to withdraw your money. You see this one is the biggest one. You see, if traders are complaining about withdrawal issues, maybe delayed payments, um, excuses, or maybe there's a sudden rule change maybe before you make your payout, then you need to run. Don't walk, run away from that prof. Another red flag you need to check out for is no verifiable track record. You see, if you can't find any YouTube video or review or maybe any community discussion about any prof, then that is a big problem. Don't use that prof at all. Now the next thing you need to watch out for is unrealistic profit target or profit split. Now you see if a prof is promising you 95% profit split and maybe a tiny draw down limit then to very honest they are just trying to attract you with that 95% profit split. Don't fall for it. And lastly another one you need to watch out for is when they don't have clear terms and conditions. Now you see if the rules of a particular prof are confusing or maybe they are written in such a way that it gives the prof every reason to disqualify you then you need to be very very careful because legit pro frames out there they always have clear and fair rules for their trading conditions and personally for me my rule of thumb is that if you haven't seen at least three different reviews about a prop frame then please don't buy that prop frame that is my own rule of thumb it is simple so en sure you always check out for all of these things before picking a prop frame to buy or the one you want to use.

[00:17:12]Now, you know, I'm going to give you my own honest opinion right here, and that is what this YouTube channel is all about. Now, to be honest, yes, crypto prop trading is actually worth it, but only if you are already a profitable trader. Let me say that again. Only if you are already a profitable crypto trader. Now, one thing a lot of people don't know is that prop frames are not trading schools. They are not going to teach you how to trade. If you don't have a strategy, if you don't have good risk management, if you are still gambling in the market, then a prop frame challenge will only just take your money. You will lose your money faster.

[00:17:44]But if you already have a proven strategy, then prop frames are one of the best opportunities available for you right now. Because where else can someone get access to like 50k or even 100k trading accounts? To be very honest, nowhere. So, this is genuinely life-changing for traders who are already profitable. And when I say traders who are already profitable, here's what I mean. I mean traders who can actually trade with $10, $20, $50 of their own money and still come out profitable. So if you're like that, then you can use proferms just for access to bigger capital. And if you are still struggling to be a profitable crypto trader, I would advise that you get my complete crypto trading course for beginners. The link to get the course will also be in the description below.

[00:18:25]In that course, you will get everything you need to become a profitable trader without the unnecessary things. So again, go ahead, the link will be in the description below. So once again, is crypto prop trading worth it? Simple, yes, but only if you are already a profitable crypto trader. So that is it for this video. That is the complete breakdown of crypto prop frame trading from scratch. Now, if this video has helped you to understand prop frames for the first time, please let me know in the comment section below. just type it in the comment section below. I'm going to read all the comments and I'll reply to every single comment under this video. And again, if you want to go deeper into any of these profs I've talked about, I've done full reviews and comparisons of the top crypto prof. So, if you want the links, again, I'll put them in the description below or just ask me in the comment section below. And if you haven't liked this video, like this video and subscribe to the YouTube channel and I will see you in the next one. Bye.