I am not that active on this discussion but sometimes I do lurk. And I think that this post is going to be relevant to the future of trading in general. I was watching a Youtube video about High Frequency Trading and I think that it will be the future of trading because the program can do trading faster than any human being. There is more in depth in the video but I will try my best to summarize HFT, consider that the stock price is around 10 USD and you ordered at that price but the prices dropped to 9 USD and HFT swoops in and buys at that price and then when your order arrives at 10 USD they are going to sell it to you with the profit of 1 USD. I am using stock as an example because the documentary that I watched was mostly focused on that. My question is, will HFT be feasible in the cryptocurrency market? Will it face any problem?
Link to the documentary:
The Wild World of High Frequency Stock Trading (Documentary)High Frequency Trading has been highly criticized by small investors and firms. Only those big hedge funds and companies manages to make all those profits using high frequency trading. The small investors consider this as an unfair advantage and they are at the highest risk.
I don't thing there are high frequency trading in crypto currencies. Others over here who are talking about the "bots" are the ones talking about regular bots that buy low sells high. Based on how volatile the price of crypto is, HFT would cause even more volatility due to flash price crashing. So do we really want HFT in crypto?