A crypto prop trading firm is a company that provides traders with capital to trade cryptocurrencies while taking a share of the profits. These firms allow traders to leverage institutional funds without risking their own money, making them an attractive option for skilled traders. Typically, traders must pass an evaluation or challenge to prove their abilities before receiving a funded account. Crypto prop trading firms offer various models, including profit splits, risk management rules, and access to advanced trading tools, catering to both beginners and experienced traders.

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