Velotrade Enters Crypto Prop Trading with a Trader-First Approach
The prop trading landscape, particularly in cryptocurrency, has become increasingly crowded. Against this backdrop, Hong Kong-based Velotrade has launched a distinct crypto-funded trading platform. This move leverages a decade of operational experience from its parent entity, Velotrade Management Limited, a fintech trade finance platform that has facilitated over $2.5 billion in transactions for businesses worldwide since 2016.
The new venture, operated by the separate legal entity Velotrade Re Limited (incorporated in November 2025), offers traders funded accounts ranging from $5,000 to $200,000 without requiring them to risk personal capital. The company positions itself as a solution to a perceived industry-wide issue: most crypto prop firms are built by non-traders, leading to misaligned rules and business models.
An Incentive Structure Built for Trader Success
Traditional prop firms typically generate primary revenue from evaluation “challenge” fees, creating a financial incentive for participants to fail. Velotrade states its model is fundamentally different. The firm uses institutional liquidity bridges and AI-driven hedging to mirror the positions of its funded traders in real markets. Consequently, Velotrade’s profitability is directly tied to the performance of its traders. “We are not here to collect challenge fees and hope people fail,” said CEO Gianluca Pizzituti. “Our revenue model is tied to trader performance. That changes everything about how you design rules, and how you treat the people trading your capital.”
Rules Forged for Crypto’s Unique Reality
A core criticism Velotrade addresses is the common practice of applying forex-derived evaluation rules to the 24/7, high-volatility crypto market. Rules like trailing drawdowns based on pip ranges, strict consistency requirements, weekend holding bans, and news trading windows often penalize traders for factors unrelated to skill. Velotrade’s platform, built specifically for crypto from the ground up, eliminates these points of friction. Key features include:
- No consistency rule: Traders are not penalized for a single large winning day or for varying position sizes based on conviction.
- No time limit: There is no cap on the evaluation period; traders progress at their own pace.
- News trading permitted: No restricted windows around macroeconomic or crypto-specific events.
- Weekend holding permitted: Positions can be held through weekends across all account tiers.
Two evaluation pathways are available: the “2-Step Challenge” offers larger drawdown limits (10% overall, 5% daily) for traders seeking more room, while the “1-Step Challenge” provides a faster route with tighter parameters (7% overall, 4% daily). Both operate on the DXtrade infrastructure. The complete rule set is published on velotrade.com with institutional-grade clarity, aiming for absolute transparency.
A Singular Focus on Cryptocurrency
Velotrade exclusively offers cryptocurrency instruments, with leverage up to 6x on major assets like BTC and ETH. The company
