How to trade faster than everybody and be the first to profit?
Time is a new currency
As you know, time is the most valuable resource. Traders who prefer scalping know how important even a fraction of a second is. The main advantage of scalping deals is amount of time they take — from 30 seconds up to a couple of minutes. As a result, the trader can conduct a larger number of trades per day, and therefore earn many time on both price increasing and pullback. The efficiency of scalping is confirmed by the data. It is calculated that scalpers make up about 20% of the total traders mass, while they also take up to 80% of all trading revenue. However, scalping itself requires a deep understanding of trading mechanisms, as well as the high discipline and concentration.
The important role in success of the scalping deal plays the speed of entry and exit from the position. Even the slightest delay can leave the trader with no profit. In order to reduce the delay, some traders rent or even buy out the buildings that adjoin the server premises of the exchange platforms. This partially helps to solve the delay problem, since they got the opportunity to receive data from first hand. However, this is only a compromise solution, as all the traders simply can’t afford to buy buildings in Malta. Therefore, industry professionals began to search for another solution to make trading fast, simple and convenient for everybody.
Almost everyone who has ever traded on a stock exchange knows how the professional trader terminals look like. These machines differentiate from PCs, and it’s not just about having three or four monitors. Ordinary PCs are capable of many different tasks, but with a similar speed. As a result, trading opportunities are limited, as hardware loads the depth of market too long. Such PC might work fast when surfing internet, but are poorly adjusted for trading, just like an ordinary car is poorly adjusted for racings.
But there is a technology that allows to modify computer hardware in a special way to perform several specific tasks as fast as possible. The technology is called FGPA (field-programmable gate array) and it takes programming the CPUs and transistors of the platform’s processors, due to which usual traders are able to reach speeds comparable to those of professional trading terminals.
Despite the benefits of such an approach, there are no crypto exchanges based on this technology. Except only one — Level2, which was created by a team of professional traders and highly skilled programmers. Each computer that the platform uses in its work is focused solely on trading. Another advantage of L2 is a decentralized structure, which eliminates any risk of loss of funds. Traders do not deposit money on any centralized wallet of the exchange. Instead of this, they enter into a smart contract, that blocks the same amount of trader’s and exchange’s funds, after that the exchange provides the trader with an equivalent deposit inside its system. After trading is done, the smart contract calculates the profit and transfers the funds directly to the user’s personal crypto wallet.
On any other platform, choosing a blockchain as a trading operations base would mean an extremely slow transaction processing rate, but thanks to FGPA technology, the founders of L2 managed to reach indicators that exceed centralized trading platforms’.
This approach results in everyone’s ability to make a large number of fast and secure trades and make more profit than on any other centralized platform.
