• Latest
Crypto Market Programmatic Trading & its Fragmentation

Crypto Market Programmatic Trading & its Fragmentation

April 26, 2019
ygg sea surpasses 10,000 scholarships in just six months of launch

YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch

May 6, 2022
mintable launches industry changing gas free minting service on ethereum

Mintable Launches Industry Changing Gas Free Minting Service on Ethereum

May 1, 2022
5 projects enabling smart contract development on bitcoin

5 Projects Enabling Smart Contract Development on Bitcoin

April 29, 2022
bitcoin atm installed in mexico's senate building

Bitcoin ATM installed in Mexico’s Senate Building

April 27, 2022
cross chain services play a crucial role in facilitating continued adoption of defi applications

Cross-Chain Services Play a Crucial Role in Facilitating Continued Adoption of DeFi Applications

April 26, 2022
justin sun launches usdd, integrating the blockchain world and the real world with the decentralized stablecoin

Justin Sun Launches USDD, Integrating the Blockchain World and the Real World with the Decentralized Stablecoin

April 25, 2022
nfts: the next musical revolution

NFTs: The Next Musical Revolution

April 24, 2022
things you should know before investing in nfts

Things You Should Know Before Investing in NFTs

April 24, 2022
what are wrapped tokens?

What Are Wrapped Tokens?

April 23, 2022
what is the future of ethereum (eth)?

What is the future of Ethereum (ETH)?

April 22, 2022
green gaming

Everything You Need to Know About Play-to-Earn on Algorand in 2022

April 21, 2022
$ape going bananas as rumors of upcoming land sale of bayc metaverse gather momentum

$APE Going Bananas As Rumors of Upcoming Land Sale of BAYC Metaverse Gather Momentum

April 21, 2022
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
CoinNewsDaily
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining
No Result
View All Result
CoinNewsDaily
No Result
View All Result
Home Trading

Crypto Market Programmatic Trading & its Fragmentation

coinnewsdaily by coinnewsdaily
April 26, 2019
in Trading
0
Crypto Market Programmatic Trading & its Fragmentation
190
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

price analysis 4/20: btc, eth, bnb, xrp, sol, ada, luna, avax, doge, dot

Price analysis 4/20: BTC, ETH, BNB, XRP, SOL, ADA, LUNA, AVAX, DOGE, DOT

April 21, 2022
naga review unveiling the platformac280c299s copytrading value proposition 1[1]

3 Facts Points Out BTC To Surge Extremely In A Week: How To Seize The Chance to Profit?

April 20, 2022

Digital currencies are highly volatile. Since the 2009 release of the open source Bitcoin protocol, the crypto market has birthed over 2525 cryptocurrencies. Powered by Satoshi’s blockchain technology, these digital assets now have an aggravated total market capitalization of approximately $172 billion at the time of writing. Programmatic trading utilizes computer algorithms to execute trades, eliminating the need for traditional manual processes. With algorithmic trading traders can make loads of high-speed trades on an intra-day basis.

How does it work?

The United States stock market initiated computerization in the 70s. The basics of programmatic trading were laid in the 80s, through “program trading.” This early program trading enabled traders to trigger trades once a desirable trading goal was reached. With time, algorithmic trading has matured with traders employing automated trading strategies via the Wall Street to mint millions. These same trading strategies are now engaged in the cryptocurrency space to give a competitive edge.

The functionality of programmatic trading has made a great stride in cryptocurrency markets. It has not only improved trading, but it has also played a crucial role in liquidity. With its robust creation of a set of rules, it fosters significant gains in efficiency of both money and time.

What fueled this fragmentation?

The power behind this explosive growth of crypto assets is perhaps the affordability of technology costs. The barriers of entry have become so low, while the frictions of creating a new cryptocurrency are quite minimal. The cream of the premier top ten cryptocurrencies takes up the lion share of this aggregate market value. It is estimated that cryptocurrencies might number into thousands in the possible future. Technological advancements and meteoric processes add to programmatic fragmentation.

The efficiencies experienced due to programmatic trading are numerous. The crypto assets’ trading market today offers just as many smart features as global financial markets do. The market has witnessed asset-backed tokens, regulated exchanges, crypto funds and over-the-counter brokers. Institutional investors play a key role with billions invested in cryptocurrency markets. Programmatic trading is fully automated and is the solution to many of the challenges often witnessed in the market.

The benefits of programmatic trading mostly revolve around time-saving and cutting costs. Thanks to the emergence of crypto trading bots, ardent traders can now build high-frequency strategies of trade that are personalized to suit them. Trading bots are software programs that execute trades on a trader`s behalf by communicating with exchanges.  They are designed to access exchange order books through an Application Programming Interface (API).

The advantages of using trading blocks are diverse. Of utmost importance is that they work around the clock availing more opportunities for trade whenever they arise. Unlike manual trading, they have the distinct value of being emotionless. This eliminates irrationality from trading. Additionally, trading bots are characterized by fast speeds thus reducing the chances of missed opportunities. They reduce fat finger mistake occurrences because there is no manual data entry. They also provide back-testing opportunities that assist in the validation of viable trade strategies

Reasons the market gravitated towards Programmatic Trading

The crypto sphere’s dot com boom commensurately occurred in 2017. The asset then moved from a cypherpunk driven market to an emerging market. Increasingly, it is equivocally viewed as a substitute for local currencies by the general public. Major financial industry players have recently taken up positions in the market. Some once very skeptical big names like Goldman Sachs have established themselves as investors in the crypto sphere.

World governments such as those of Japan, South Korea and China have also injected a lot of excitement in the market with their presence. Unfortunately as was with the 1999-2002 dot com boom, several trading vices have once more reared their ugly heads. Market manipulation, fraud, lack of transparency and poor governance has put a spotlight on the reasons behind price appreciations.  The market has also become very fragmented with open wars between Bitcoin, Ethereum, Bitcoin Cash or Ripple believers. The internal conflicts amongst Bitcoin core developers, miners and investors have certainly not made trading easy.

Trading bitcoin in its infancy was no mean feat. There was a heavy reliance on peer-to-peer transactions with other bitcoin enthusiasts who were often strangers. The exchanges were insecure, but there were no options available.

The Peculiarities of Programmatic Crypto Trading

Consistency
There is a lack of consistency in trading sessions or 24/7 trading. There is also a lack of periodicity too that causes a lot of inconveniences to all parties involved. The emergence of high-tech trading bots and vices have however aided profusely.

Technical and security complexity
It is not uncommon to hear of an investor who has lost a treasure trove in bitcoins along with his hard drive. Besides that, trading terminals and some crypto exchanges are still in their growth stage.  Technological evolution and regulation in the industry has lessened the fears.

Price Movements
The more sizeable traders often result to price movement manipulations when they see it fit. The industry has been characterized by huge plunges that result from crypto whales. Algorithmic trading provides viable options.

Transparency
It is becoming harder and harder to decipher what, yet another new “disruptive” website has to offer. Does it offer a working product or not? These factors often expose many an investor to massive trading irregularities.  Blockchain technology has greatly assisted in addressing transparency. The open source platform enables all parties to be fully immersed and conscious of their involvement in the crypto sphere.

Conclusively, improving trading via technology is vital to this growing market. By employing the right mix of bots, vices, structures and systems, traders will have the ability to limit potential market risks and grow their market opportunities.

Tags: Crypto Tradinghigh-tech trading botsopen source Bitcoin protocolProgrammatic Crypto TradingSatoshisoftware programsTrading
Share76Tweet48
Previous Post

Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, EOS, Binance Coin, Stellar, Cardano, TRON: Price Analysis April 26

Next Post

Ripple Welcomes SBI Holdings CEO Yoshitaka Kitao As Board Member

coinnewsdaily

coinnewsdaily

CoinNewsDaily.com is an online Crypto Coin News Website that aims to provide latest trendy news from market and around the world.

Related Posts

price analysis 4/20: btc, eth, bnb, xrp, sol, ada, luna, avax, doge, dot
Alt Coin

Price analysis 4/20: BTC, ETH, BNB, XRP, SOL, ADA, LUNA, AVAX, DOGE, DOT

April 21, 2022
naga review unveiling the platformac280c299s copytrading value proposition 1[1]
Bitcoin

3 Facts Points Out BTC To Surge Extremely In A Week: How To Seize The Chance to Profit?

April 20, 2022
here's how ether options traders could prepare for the proof of stake migration
Ethereum

Here’s how Ether options traders could prepare for the proof-of-stake migration

April 20, 2022
Pro traders know it’s time to range trade when this classic pattern shows up
Ethereum

Pro traders know it’s time to range trade when this classic pattern shows up

April 17, 2022
ethereum derivatives data shows pro traders are bearish, but for how long?
Ethereum

Ethereum derivatives data shows pro traders are bearish, but for how long?

April 17, 2022
price analysis 4/11: btc, eth, bnb, sol, xrp, ada, luna, avax, dot, doge
Bitcoin

Price analysis 4/11: BTC, ETH, BNB, SOL, XRP, ADA, LUNA, AVAX, DOT, DOGE

April 11, 2022
Load More
Next Post

Ripple Welcomes SBI Holdings CEO Yoshitaka Kitao As Board Member

Categories

  • Alt Coin
  • Bitcoin
  • Business
  • Ethereum
  • ICO
  • Litecoin
  • Mining
  • NFT
  • Ripple
  • Tech
  • Trading

What New here?

  • YGG SEA Surpasses 10,000 Scholarships in Just Six Months of Launch
  • Mintable Launches Industry Changing Gas Free Minting Service on Ethereum
  • 5 Projects Enabling Smart Contract Development on Bitcoin

Subscribe to Get More!

Loading
  • About Us
  • Contact Us
  • Privacy & Policy

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

No Result
View All Result
  • Home
  • Coin Market Cap
  • Bitcoin
  • Ethereum
  • Ripple
  • Litecoin
  • Alt Coin
  • Business
  • Trading
  • Mining

© 2018-2021 CoinNewsDaily.com by CoinNewsDaily Inc. Crafted with Love by iFtiDev

  • bitcoinBitcoin(BTC)$29,322.00-3.92%
  • ethereumEthereum(ETH)$1,968.84-5.28%
  • tetherTether(USDT)$1.000.05%
  • binancecoinBNB(BNB)$323.71-3.21%
  • rippleXRP(XRP)$0.407561-4.63%
  • cardanoCardano(ADA)$0.52-6.78%
  • SolanaSolana(SOL)$49.57-8.61%
  • dogecoinDogecoin(DOGE)$0.084432-4.36%
  • polkadotPolkadot(DOT)$9.87-5.52%
  • tronTRON(TRX)$0.0811394.71%
  • Shiba InuShiba Inu(SHIB)$0.000012-5.59%
  • daiDai(DAI)$1.00-0.04%
  • litecoinLitecoin(LTC)$69.92-5.07%
  • CronosCronos(CRO)$0.186184-7.48%
  • leo-tokenLEO Token(LEO)$4.88-0.32%
  • matic-networkPolygon(MATIC)$0.64-7.69%
  • FTX TokenFTX Token(FTT)$29.52-4.75%
  • bitcoin-cashBitcoin Cash(BCH)$192.36-5.92%
  • moneroMonero(XMR)$192.28-0.97%
  • OKBOKB(OKB)$12.72-1.95%
  • chainlinkChainlink(LINK)$7.02-7.50%
  • stellarStellar(XLM)$0.130033-5.74%
  • cosmosCosmos Hub(ATOM)$11.03-9.48%
  • ethereum-classicEthereum Classic(ETC)$22.39-3.90%
  • algorandAlgorand(ALGO)$0.410294-8.86%
  • vechainVeChain(VET)$0.031323-8.31%
  • ElrondElrond(EGLD)$90.77-2.90%
  • tezosTezos(XTZ)$2.093.68%
  • Internet ComputerInternet Computer(ICP)$7.76-8.45%
  • filecoinFilecoin(FIL)$8.40-1.67%
  • AaveAave(AAVE)$97.91-6.22%
  • eosEOS(EOS)$1.33-6.22%
  • theta-tokenTheta Network(THETA)$1.25-7.71%
  • zcashZcash(ZEC)$97.77-10.65%
  • makerMaker(MKR)$1,310.07-9.40%
  • huobi-tokenHuobi Token(HT)$6.96-1.24%
  • bitcoin-cash-svBitcoin SV(BSV)$51.60-3.91%
  • paxos-standardPax Dollar(USDP)$1.00-0.07%
  • iotaIOTA(MIOTA)$0.332447-7.78%
  • PancakeSwapPancakeSwap(CAKE)$4.84-5.67%
  • neoNEO(NEO)$11.12-9.85%
  • zilliqaZilliqa(ZIL)$0.051917-10.10%
  • KusamaKusama(KSM)$80.59-5.98%
  • dashDash(DASH)$61.55-4.47%
  • basic-attention-tokenBasic Attention Token(BAT)$0.391451-6.47%
  • havvenSynthetix Network Token(SNX)$2.62-8.04%
  • wavesWaves(WAVES)$5.63-13.74%
  • nemNEM(XEM)$0.054402-7.34%
  • CompoundCompound(COMP)$68.84-7.07%
  • bitcoin-goldBitcoin Gold(BTG)$27.38-0.76%
  • qtumQtum(QTUM)$4.04-9.30%
  • omisegoOMG Network(OMG)$2.54-6.94%
  • Elrond ERDElrond ERD(ERD)$0.0259290.00%
  • yearn-financeyearn.finance(YFI)$9,138.93-4.77%
  • ethlendAave [OLD](LEND)$4.103.48%
  • SushiSushi(SUSHI)$1.65-0.42%
  • golemGolem(GLM)$0.254504-7.30%
  • ontologyOntology(ONT)$0.283862-7.61%
  • umaUMA(UMA)$3.50-3.10%
  • digibyteDigiByte(DGB)$0.012237-8.23%
  • UniswapUniswap(UNI)$2.4438.80%
Posting....