Eleonora
Sat Jul 13 2024
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6 answers
1064
Is crypto a good match for high-frequency trading (HFT)?
Could you elaborate on whether cryptocurrency is a suitable choice for high-frequency trading (HFT)? Given its decentralized nature, volatility, and the potential for market manipulation, does it pose unique challenges or opportunities for HFT strategies? How do transaction costs, speed of execution, and liquidity compare to traditional financial markets? Additionally, how do regulators' evolving attitudes towards cryptocurrencies and HFT impact its suitability for this trading style? Please provide a comprehensive analysis of the key factors to consider before embarking on crypto-based HFT.
