Thoughts on exchange deposit bonuses, worth it or just bait?

Over the past few months I have noticed more centralized exchanges pushing aggressive deposit bonus campaigns. It seems like every few weeks there is a new event offering a few hundred dollars in trading credit, tiered rewards based on volume, or a prize pool tied to some kind of leaderboard competition. On the surface it looks attractive, especially during slower market conditions when extra capital or reduced risk exposure sounds appealing.

At the same time, I cannot help but feel skeptical. In crypto, incentives are rarely offered without a clear benefit to the platform itself. When an exchange is offering deposit bonuses or trading competitions, I assume the main goal is to increase volume, attract new users, or temporarily boost activity metrics. That is not necessarily a bad thing, but it does make me cautious about whether the promotion actually benefits the average trader or primarily rewards the top percentage of high volume participants.

I am currently evaluating one such campaign that includes a deposit bonus and an additional prize pool for traders who hit certain volume milestones. The advertised rewards look meaningful on paper. However, I have learned that the headline number does not always reflect what is realistically attainable. Sometimes the bonus funds are locked until extremely high trading thresholds are reached. Other times the competition structure heavily favors whales who are already moving significant size, which makes it difficult for smaller traders to benefit in any meaningful way.

Another factor I consider is behavioral impact. Promotions like this can subtly encourage overtrading. When there is a target to hit in order to unlock a bonus, it can influence decision making in ways that deviate from a disciplined strategy. I try to stick to structured risk management and avoid unnecessary trades. If the pursuit of a reward causes me to increase position frequency or size beyond my normal parameters, then the bonus may not actually be worth it.

There is also the practical side of moving funds between exchanges. Even if the platform running the campaign has decent liquidity and a good interface, transferring capital introduces additional exposure and operational steps. Withdrawal reliability, order book depth, and execution quality during volatile periods matter more to me than promotional rewards. If the exchange cannot handle spikes in activity smoothly, then no bonus justifies the risk.