Eliminating High Frequency Trading and Creating ‘Fairer’ Markets
Cryptocurrency exchange PS Coin rebrands as Laissez Faire as it continues its mission to correctly incentivize trading. The magic behind Laissez Faire is their incentive algorithm; an algorithm designed to encourage what Co-Founder, Daniel Pusateri calls "healthy" behavior among traders. Traders on Laissez Faire are automatically compensated with royalties for placing orders for as many units of currency as they can, as close to the bid-ask-spread as they dare. As a result, all of the bids and asks seen on the Laissez Faire markets are not an illusion of stability, but actual stability.....
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High-frequency trading allows cryptocurrency traders to take advantage of market opportunities that are usually unavailable to regular traders. Following the decentralized finance (DeFi) boom of 2020, decentralized exchanges (DEXs) solidified their place in the ecosystems of both cryptocurrency and finance. Since DEXs are not as heavily regulated as centralized exchanges, users can list any token they want. With DEXs, high-frequency traders can make trades on coins before they hit major exchanges. Plus, decentralized exchanges are noncustodial, which implies that creators cannot pull an....
High-frequency strategies, which typically employs algorithmic systems, can be applied to bitcoin trading. This can involve looking at price gaps, short-term arbitrage opportunities, and other market factors to make profits off volatile price action. According to Assembly software and cryptocurrency engineer Andrew Barisser, bitcoin trading using high-frequency strategies has an incredibly open system that can easily be used by developers. Exchanges usually have open APIs that can allow anyone to trade, without requiring premium access or associated costs. Bitcoin Trading Systems. Barriser....
Andrew Barisser is a software and cryptocurrency engineer at Assembly. Previously he was a grad student in biophysics at UCSB, where he says a "gnawing fascination" with bitcoin led him to software. In this article, he shares lessons learned from creating his own bitcoin trading bot in the "shark infested waters" of Coinbase's new exchange. I've recently started trading bitcoins algorithmically on the new Coinbase exchange. After reading about high-frequency trading in the book Flash Boys by Michael Lewis, I decided I'd give it a shot myself, albeit in a clumsier, more amateurish way. The....
Investors have benefited from algorithmic ('algo') trading programs under many different circumstances, but these 'trading bots' can prove particularly valuable to those interested in cryptocurrencies. Bot trading has reduced user error, enabled more rapid processing of information and given traders more time and flexibility. However, it may hold even greater potential in the crypto markets due to their immature nature. Trading bots have been around for decades, seeing growing use in stock markets as digitization has taken hold. However, the digital currency markets are less than a decade....
Portofino’s backers believe that access to high-frequency trading, or HFT, could bring more hedge funds and institutional investors into crypto. Cryptocurrency startup Portofino Technologies has officially launched its high-frequency trading platform for digital assets, securing major funding from venture capital firms in the process. In launching its platform, Portofino disclosed that it had raised $50 million in equity funding from Valar Ventures, Global Founders Capital and Coatue. Although Portofino didn’t disclose how the funding will be used, the company has been active on the hiring....