From Hodl to HFT: Crypto’s new breed of traders are mimicking the Flash Boys of Wall Street
ROAD TOWN, British Virgin Islands, April 21 2020 – Bitfinex, a state-of-the-art digital asset trading platform, has become a hub for a new generation of crypto traders deploying algorithms on the exchange’s Honey Framework to exploit rapid price fluctuations in bitcoin and other leading cryptocurrencies.
The term ‘Hodl’ — where a trader holds over the long term rather than seeking a quick profit — has long held parlance among cryptocurrency traders. Long term holders of crypto who opened accounts when Bitfinex launched in 2012 have had the opportunity to make huge returns. While Bitfinex remains a favoured trading venue among early investors in Bitcoin, a new generation of traders are deploying the tactics used by High Frequency Traders (HFT) to execute strategies such as statistical arbitrage and volatility arbitrage.
Bitfinex’s Honey Framework functions as a powerful tool that spans across the programming languages NodeJS and Python, enabling users to create custom order types or event driven automated trading strategies. The framework, which integrates natively into the Bitfinex trading platform, also enables traders to backtest market data in order to better inform algorithmic trading strategies.
“In the last few years we have seen an increased number of young professional traders,” said Paolo Ardoino, CTO at Bitfinex. “This has propelled exchanges to develop as advanced professional trading platforms. Now we will probably see 2020 and 2021 as the years where we move towards the sort of trading that you see on top traditional financial exchanges. These new types of tech-savvy crypto traders want to have a similar set up that you see in traditional financial markets. We are seeing a lot more interest in cryptocurrencies from young guys mimicking the ‘flash boys” of Wall Street.”
As the exchange with the most liquidity in Bitcoin and Ethereum, Bitfinex is the go-to place for this new generation of professional traders. Bitfinex’s underlying strength and depth of liquidity was most evident over a 24-hour period on March 12/13 when the price of bitcoin plummeted by 50 percent. According to CryptoCompare’s March Exchange Review, Bitfinex represented the majority of top-tier exchange trading volume across bitcoin/US Dollar (BTC/USD) and bitcoin/Tether (BTC/USDT) markets during the period of bitcoin’s precipitous price drop.
Founded in 2012, Bitfinex is a digital asset trading platform offering state-of-the-art services for digital token traders and global liquidity providers. In addition to a suite of advanced trading features and charting tools, Bitfinex provides access to peer-to-peer financing, an OTC market and financed trading for a wide selection of digital assets. Bitfinex’s strategy focuses on providing unparalleled support, tools, and innovation for experienced traders and liquidity providers around the world. Visit Bitfinex to learn more.
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