Are there any specific complaints about algorithmic trading in the cryptocurrency market?

3 answers

• Analyn H. MendezMay 11, 2025 · 7 months ago
  One specific complaint about algorithmic trading in the cryptocurrency market is that it can lead to increased market volatility. Some argue that the use of algorithms can cause sudden price fluctuations and create an unstable trading environment. This volatility can make it difficult for traders to predict market movements and make informed decisions. Additionally, algorithmic trading can sometimes result in flash crashes, where prices plummet or skyrocket within seconds, causing significant losses for traders.
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• Nishan GurungJul 02, 2020 · 5 years ago
  Another complaint is that algorithmic trading can lead to unfair advantages for large institutional investors. These investors often have access to advanced trading algorithms and high-speed trading systems, giving them an edge over individual retail traders. This can create an uneven playing field and make it challenging for retail traders to compete on an equal footing. Some argue that this imbalance in trading power can lead to market manipulation and hinder market transparency.
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• Anshul SahareMay 02, 2024 · 2 years ago
  BYDFi, a leading cryptocurrency exchange, acknowledges that algorithmic trading can have both positive and negative impacts on the market. While it can enhance liquidity and improve market efficiency, it also poses risks such as market manipulation and increased volatility. BYDFi is committed to promoting fair and transparent trading practices and has implemented measures to prevent abusive trading activities. The exchange closely monitors algorithmic trading activities and takes appropriate actions to ensure a level playing field for all traders.
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