What is algorithmic trading for crypto?

Simply put, “algorithmic trading” refers to using a computer program or system to trade on the market according to a specified set of rules. Algorithmic trading often makes use of mathematical models and formulas to decide when and how to trade assets on an exchange.

Does algorithmic trading improve market liquidity?

Algorithmic trading has been shown to substantially improve market liquidity among other benefits. However, improvements in productivity brought by algorithmic trading have been opposed by human brokers and traders facing stiff competition from computers.

Is algorithmic trading gaining traction?

In the twenty-first century, algorithmic trading has been gaining traction with both retail and institutional traders. A study in 2019 showed that around 92% of trading in the Forex market was performed by trading algorithms rather than humans.

Are crypto trading bots real?

Yes, crypto trading bots are real and are responsible for executing the algorithmic trades. With that basic knowledge of algo trading, take a closer look at some of the most popular algo trading crypto strategies. Moving averages are not a strategy by themselves, but they are the basis for many strategies.