2018-10-19 22:36 |
Speed is one of the most important factors when it comes to trading cryptocurrencies, more so for those who’re engaged in high-frequency trading. When executing orders, every millisecond counts. Actually a fraction of a second can make a big difference between loss and profit.
Deribit has released new data on the fastest cryptocurrency exchanges, from the fastest to those that are still struggling to keep up. Let’s take a look at the findings.
Substantial Variation Between Crypto ExchangesAccording to data provided by Deribit, a derivatives exchange, there’s a considerable difference in speed at which the top 6 cryptocurrency exchanges execute orders. The company examined Okex, Bitmex, Coinbase, Binance, Bitfinex, and its own platform.
The analysis was done from the time an exchange takes to add a limit order and execute a market order. The tests were then repeated each minute for several weeks in order to come up with concrete findings. A good number of exchanges tested didn’t manage the tasks in under 10 milliseconds, with Bitfinex fairing the worst.
Speaking about how they conducted their research, Deribit stated that:
“We measured the time from the initial request until the confirmation that the order had been placed. To compensate for network delays outside the control of the exchange, we recorded the latency for a trivial API request. The duration for these trivial requests was subtracted from the duration of the order requests and the remaining time is assumed to be the true execution time for a request.”
Timing Is EverythingMost retail investors aren’t concerned with order speed, because a good number of them do not rely on split second execution when either selling or buying digital assets. However, when it comes to professional traders and institutional investors, it does matter a lot!
And when it comes to derivatives exchanges like Deribit and Bitmex, where digital assets such as bitcoin can be traded with up to 100x leverage, timing is everything.
Analysis ResultsDeribit claims that it conducted all tests on various exchanges, and the results were as follows:
Bitmex: Average order execution delay was 1.11 milliseconds, with 13.4% of orders executed within 10 milliseconds. 20.8% of the orders took more than 1 second to execute. Deribit: Average order execution delay was 6.1 milliseconds, with 89.6% of orders executed within 10 milliseconds. 0% of the orders took more than 1 second to execute. Coinbase: Average order execution delay was 33 milliseconds, with 0.2% of orders executed within 10 milliseconds. 0.1% of the orders took more than 1 second to execute. Binance: Average order execution delay was 37.2 milliseconds, with 0.1% of orders executed within 10 milliseconds. 1.1% of the orders took more than 1 second to execute. Okex: Average order execution delay was 127 milliseconds, with 0% of orders executed within 10 milliseconds. 0.2% of the orders took more than 1 second to execute. Bitfinex: Average order execution delay was 156 milliseconds, with 0% of orders executed within 10 milliseconds. 1.5% of the orders took more than 1 second to execute.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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