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Cryptocurrency Ecosystem => Crypto Exchanges => Topic started by: Tamsialu$$ on September 11, 2022, 03:29:17 PM

Title: How does high-frequency trading work on decentralized exchanges?
Post by: Tamsialu$$ on September 11, 2022, 03:29:17 PM
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 exit fraud — in theory.

As such, high-frequency trading firms that used to broker unique trading transactions with cryptocurrency exchange operators have turned to decentralized exchanges to conduct business.more (https://cointelegraph.com/news/how-does-high-frequency-trading-work-on-decentralized-exchanges)