How Algo And HFT Progresses In Crypto Trading

How Algo And HFT Progresses In Crypto Trading

Using algorithms, supercomputing power, and low-latency trading technologies, high-frequency trading (HFT) seeks to take advantage of market price inefficiencies in order to make a profit. HFT is a good target for market instability since it requires investors


to trade in large numbers and is most lucrative in volatile markets. When the VIX, or "fear gauge," fell to a record low in November 2017, HFT businesses suffered, with aggregate income from trading US stocks falling below $1 billion for the first time since


2008.

2017 was a year of peace in the equity market, but a year of turmoil in the cryptocurrency market. At a time when the price of Bitcoin jumped from $900 to $20,000, HFT companies and other institutional investors were paying attention. An opportunity was


seen by various cryptocurrency exchanges that started rolling out particular services and platforms for HFT corporations. In this article, we’ll provide you with information on how the crypto market embraced Algo and HFT. 

HFT And Algo Meets Cryptocurrency

There are four broad sorts of HFT strategies: market making, momentum trading, liquidity detection, and arbitrage. High-frequency traders benefit from the disparity between the bid and ask prices by using latency to buy and sell assets in microseconds.