How to get the highest price for your cryptocurrencies by Smart Order Routing
Currently, the prices of different cryptocurrencies, such as Bitcoin, vary a lot between exchanges. Cryptocurrency traders often have accounts on several exchanges, in order to be able to send their crypto around to realize the best value when selling. Smart order routing effectively removes that need.
Smart order routing has already been available as a stock-trading methodology since the late 90s as a technological answer to increasingly fragmented markets. Smart order routing is the automated process of handling orders and is aimed at taking the best available opportunity throughout a range of different exchanges.
Just as the stock-market, the cryptocurrency market (with currently more than 500 exchanges) is also highly fragmented. Looking for the best price to buy or sell your cryptocurrencies is becoming increasingly more difficult. Markets are usually crossed (meaning that the highest bid is above the lowest offer), and also order books are often hard to read for traders due to the ability to post orders for a tiny fraction of a full unit. Smart order routing would help the cryptocurrency market tremendously, as much as it helped the stock market for decades.
While smart order routers for the stock market are currently fairly common, only a very few solutions are currently available for the cryptocurrency market. The solutions that are available though, are either only in whitepaper form, or as Github projects that are in alpha stage. No practical solution is currently available for the common trader. That will change soon however with the release of the next generation’s capital market SprinkleXchange.
The upcoming SprinkleXchange will be the first cryptocurrency exchange in the world to adopt smart order routing. That means that when you place an order to buy or sell a cryptocurrency on SprinkleXchange, your order will automatically be routed to the best execution destination, based on where the best price is offered. In other words, you will always buy at the lowest price available, and sell at the highest price available on the market.
Finally, the well-established stock-trading methodology smart order routing can now be applied to this dynamic new digital asset class.
SprinkleXchange is powered by SprinkleCoin. SprinkleCoin will be the vehicle used for swapping between different asset classes on SprinkleXchange. You could sell Bitcoin for SprinkleCoin, and then use your SprinkleCoins to instantly reinvest in Apple stock, for example, because SprinkleXchange is coupled with the trading platform of Sprinkle Group’s online brokerage, SprinkleBrokerage.
SprinkleCoin is currently doing an ICO at https://www.sprinklecoin.com