What Is Prop Trading and How It Works: TOP 5 Prop Firms for Crypto Trading in 2025

The cryptocurrency market is rapidly maturing. While trading was once associated with gambling, high risks, and impulsive decisions, today more and more participants are seeking structure, stability, and a professional approach. In light of this evolution, prop trading is gaining traction — a model in which traders operate using a company’s capital rather than risking their own. This changes the game: the focus shifts from luck to discipline, skill, and risk management.

In this article, we’ll take a closer look at what prop trading is, and review the top proprietary trading firms in the crypto industry. We’ll compare their conditions and approaches to help you choose the one that can truly unlock your potential.

What is Prop Trading?

Proprietary trading, or prop trading, is a form of trading where a trader operates using a company’s capital instead of their own funds. In return, the trader receives a percentage of the profits. These companies are known as prop firms or simply props.

On traditional financial markets — such as stocks, forex, and derivatives — prop trading has existed for decades. Many successful traders began their careers at proprietary trading firms before building up their own capital and going independent.

In the West, the term funded trader is widely used — referring to a trader who has passed a selection process and been given a company account to manage. Their income comes from a share of the profits they generate for the prop firm. The split can reach 80–90% in favor of the trader — and that’s considered standard in the industry.

Why Prop Trading Became Possible in Crypto Only Recently

For a long time, the prop trading model was simply unfeasible in the crypto market. The main reasons were:

• Unpredictable volatility: Coins could gain or lose dozens of percentage points in just a few hours.
• Lack of risk control tools: There were no advanced platforms with features like stop-loss enforcement, automatic drawdown tracking, and other basic trading elements.
• Weak regulation and an abundance of reckless traders: The space was full of “toxic” traders who lacked proper risk management skills.

But in 2025, the situation changed. The market matured, and demand for professional trading emerged. Developers introduced advanced platforms that allow for strict control over:

• daily drawdown,
• position size,
• maximum leverage,
• and even the types of instruments available for trading.

This gave the green light to the rise of crypto prop trading — a model where discipline outweighs luck, and risk management is more important than volatility.

How Prop Trading Works

The process of entering a prop trading program usually looks like this:

• Choosing an account and terms: The trader selects a starting capital level they’re comfortable with — for example, $10,000, $25,000, $50,000, or more.
• Paying an evaluation fee: A small fee (typically $100 to $300 depending on the account type) is required to participate in the selection process.
• Evaluation phase: The trader must demonstrate consistent profitability without exceeding drawdown limits. This phase usually lasts 1–2 months.
• Receiving a funded account: If the trader passes, they receive a live trading account and begin earning a share of the profits.
• Ongoing support and scaling: Experienced trade desks oversee performance, help avoid major mistakes, and may increase account size for successful traders.

All of this — without needing to invest tens of thousands of your own dollars. The key requirements for a trader are discipline, consistency, and solid risk management.

Top 5 Crypto Prop Trading Firms of 2025

1. Hash Hedge

Hash Hedge — an ambitious leader of a new format built from the ground up for the crypto market. Unlike traditional prop firms that simply adapt Forex infrastructure for crypto instruments, HashHedge was originally designed as a crypto ecosystem for professional traders.

Key features:

• Direct access to crypto exchanges. Connection to leading exchanges with the ability to trade through a native web interface.
• Strict risk management. Daily and total loss limits, transparent violation recording, and trader capital protection.
• Smooth growth path. Account scaling based on trading results — from $5,000 to $100,000+ without the need for re-examination.
• Mentorship support. Active community, curators, training, and guidelines for development.

HashHedge focuses on discipline and a mature approach to trading, rather than trying to get rich quickly. It’s a real alternative to the futures casino.

Go to Hash Hedge

2. FTMO

FTMO — one of the oldest and most authoritative players in the prop trading industry. The company started with Forex but has successfully adapted to the crypto market.

What FTMO offers to crypto traders:

• Two-step selection process. Challenge and Verification — traders must show stable profits without exceeding daily and overall risk limits.
• Large accounts. Starting from $10,000 to $200,000, with the possibility of scaling up to $2 million.
• Statistics and analytics. A personal dashboard with detailed metrics — from drawdown to risk/reward ratio.
• Global recognition. High ratings, an office in Prague, and regular participation in trader conferences.

This is one of the most structured and reliable options for those looking to establish themselves in the profession.

Go to FTMO

3. HyroTrader

HyroTrader stands out by allowing traders to work with real cryptocurrencies rather than contracts for difference (CFD), offering more transparent and fair conditions.

What makes HyroTrader unique:

• Direct access to Bybit exchange. No simulations — everything is as it would be on a real account.
• Real market commissions. Not artificial spreads, but actual exchange conditions.
• Flexible selection process. A simple entry model, strict risk management, but without unnecessary bureaucracy.
• Office in Europe (Slovakia). Transparent legal framework.

HyroTrader is an excellent option for those who want to earn honestly in the crypto market without “sandboxes” and simulations.

Go to HyroTrader

4. Funded Trading Plus (FT+)

FT+ focuses on honesty and supporting traders from registration to profit realization.

What FT+ offers:

• Simple and clear selection process. Two-stage structure, realistic goals, no hidden rules.
• Weekly payouts. One of the fastest withdrawal systems among prop companies.
• Support for MT4/MT5 platforms. With crypto instruments and reasonable spreads.
• Support for beginners. Demo modes, consultations, and an open community.

FT+ is a prop company with a human touch, offering traders a comfortable and stable platform for growth.

Go to FT+

5. FundedNext

FundedNext is actively competing for traders’ attention by offering aggressive terms and generous profit-sharing models.

Why traders choose FundedNext:

• Up to 95% profit to the trader. One of the most generous offers in the industry.
• Instant funding. The option for immediate access to an account without the traditional two-step selection process.
• Crypto spreads with no commissions. Competitive trading conditions for crypto instruments and no hidden costs.
• Payments every 2 weeks. A stable and predictable cash flow.

An ideal choice for experienced traders who want to scale quickly without bureaucracy.

Go to FundedNext

Strategies Suitable for Prop Trading

Prop companies not only provide access to trading capital but also set strict limits on risk, drawdown, position size, and trade duration. Therefore, not every retail trader’s strategy is applicable in a prop trading environment. Successful prop traders use systematic approaches that combine:

• Clear entry and exit rules, without subjective decisions driven by emotions.
• Managed risk — each trade must have a stop-loss and a calculated risk/reward (RR) ratio.
• Stability and reproducibility — strategies should demonstrate a positive expected return over the long term.
• High signal frequency to accumulate statistics and develop skills.

Below are the strategies that have proven to be effective in prop trading, especially in the cryptocurrency markets:

1. Intraday Scalping

Essence — opening numerous fast trades within the day on impulses, breakouts, or bounces.

Goal — to take a small profit with minimal drawdown.

Advantages:

• High frequency of trades.
• Flexibility.
• Quick accumulation of statistics.

Key Points:

• Requires immediate execution — low spreads and commissions are important.
• Works best during volatile hours (US market opening, news releases).
• Especially effective with access to print tape, order book, or DOM.

Suitable for prop trading if:

• The trader has iron discipline.
• Short stops are set (0.2–0.5%).
• Daily and weekly drawdown limits are adhered to.

2. Momentum Trading

Essence — entering the market in the direction of movement when momentum and volume increase. The trader focuses on the acceleration of the trend.

Tools:

• Volume indicators.
• Oscillators (RSI).
• VWAP.
• EMA crosses

Pros:

• Scalable — position size can increase as confidence grows.
• Suitable for both scalping and intraday timeframes.

Cons:

• Requires distinguishing “true” momentum from false signals.
• Often requires manual analysis and quick reactions.

3. Breakout Strategies

Essence — entering a trade when key levels (support/resistance, consolidation, range) are broken.

Combined with:

• Cluster analysis, volume, and order book (if provided by the prop company).

Risks:

• Frequent false breakouts, so volume and time filtering are critically important.

Suitable for prop trading if:

• Clear filtering rules are in place (e.g., volume confirmation ×2).
• Limit stops are used, and there is a clear action plan for pullbacks.

4. Range Trading (Channel Trading)

Essence — buying at the lower boundary of the range and selling at the upper boundary (or vice versa — shorting). Effective in markets with clear horizontal levels and low volatility.

Features:

• Requires accurate entry and short stops.
• Works best during the night session and periods of weak trends.

Suitable for prop trading if:

• The prop company allows holding trades for more than one day.
• Confidence in holding levels — confirmed by candlestick analysis or volume.

5. News-Based Trading

Essence — trading on sharp moves caused by news releases (e.g., FOMC, CPI, ETF launches, SEC statements).

Pros:

• High volatility = high potential returns.

Cons:

• Sharp gaps, slippage, and quote disconnections.
• Risk limits may be violated at the time of publication.

Suitable only if:

• The prop company allows trading during news releases.
• Experience in dealing with high volatility

What doesn’t work in prop trading:

Some methods are categorically unsuitable for prop accounts, even if they seem profitable on demo or in retail trading:

• Martingale and averaging without stops — a direct path to violating daily limits and disqualification.
• Position trading without drawdown control — if a trade goes into a loss beyond the established limit, the account can be frozen.
• Trading without a clear risk/reward (RR) model — strategies without a planned exit and based on “hoping” won’t even pass the selection process.
• Manual trading “on gut feeling” — any subjective entries without a system will quickly lead to a limit breach.

Prop Trading ≠ Casino

Many beginners enter the cryptocurrency market with excitement, hoping to “grow” their deposit from $100 to $10,000. To achieve this, they open positions with leverage of 50x, 100x, and sometimes even 400x. Unfortunately, in 99% of cases, this ends with the loss of their deposit. These players are essentially playing roulette — and losing. The saddest part is that:

• They don’t earn for themselves or their mentors.
• They quickly burn out, lose money, and lose faith in trading.
• And they return only when they manage to save up some more for their account.

Prop Trading, unlike this, offers a path to real earnings. There is no illusion of quick success. Instead, there is:

• Loss control
• Work with clear limits
• A systematic approach to trading
• Capital growth as success is achieved

As experienced market participants note, most real traders who today earn consistently began exactly with prop trading.

The Psychological Side

It is important to understand that managing an account with $50,000 or $100,000 is a serious psychological burden, even if the money isn’t yours. Therefore, it is better to start small. For example, a $10,000 account allows you to:

• Avoid the pressure of large sums
• Show consistent trading
• Gain your first profits and experience
• Grow your capital gradually.

Don’t set the goal to make 100% on $2,000. It’s better to make 3-4% per month, but on a stable, scalable basis, and increase your capital over time.

Advantages of Prop Trading

• Minimal Personal Financial Risk: The trader risks time and effort, not their own money. By following the rules, they won’t lose their funds, even if the trading goes into the negative.
• Access to Large Capital: A trader with $500 in their account cannot trade large positions and risks. With a prop account, they can trade with $50,000 and earn an income equivalent to a full-time profession.
• Career Growth Opportunities: Some companies offer increased limits or opportunities to work in asset management teams for especially successful traders.
• Flexible Schedule and Freedom: There is no strict supervision. Traders can work remotely, choose their own tools, and trade strategies.
• Training and Community: Many prop companies provide training and mentorship, offering video lessons, mentor chats, webinars, and internal trade reviews.

Disadvantages and Pitfalls

• Paid Tests: To enter the program, you need to pay for a “challenge” — from $50 to $300 depending on the account size. If you fail, the money is non-refundable.
• Strict Rules: Exceeding the daily loss limit or trading at prohibited times (such as before news releases) can lead to account cancellation, even with a positive profit.
• Emotional Pressure: Trading with someone else’s money can create additional pressure, especially if the trader has already failed the selection process multiple times.
• Fraud and Pseudo-Companies: Some firms simply sell “challenges” without ever providing real market access. It’s important to check the company’s reputation, read reviews, and understand the terms.

Who is Prop Trading Suitable For?

Prop trading is a great solution for:

• Traders who already know how to trade but lack significant capital.
• Those who are tired of gambling and want to transition to a professional level.
• Beginners who wish to learn from professional teams.
• People striving for financial independence through discipline and results.

Frequently Asked Questions

Conclusion

Prop-trading is not a hype or a short-term trend. It is a logical stage in the evolution of the cryptocurrency market. It opens up a real path to a career as a trader, where skills matter more than luck. If you consider yourself a trader, and if discipline and risk management are part of your mindset, the prop model can be your gateway to professional trading.
Instead of another failure with 100x futures leverage, you get the chance to build a career and stable income. And all of this comes with minimal investment. In 2025, prop-trading is not just an opportunity — it is the new standard for those who want to earn in crypto for real.