Colocation Services Boost High-Speed Trading for Cryptocurrency Firms
Crypto colocation is a service that helps reduce delays in trading by placing a company's server close to the exchange server.
This proximity reduces the distance for orders and price data to travel, which can be critical in high-speed trading. Even small delays of just a few milliseconds can make a big difference in the prices received by traders.
Several exchanges offer colocation services with varying specifications, including location, connection type, access rules, and speed. Companies should carefully compare these details before choosing a provider.
Exchange colocation works by placing a client's server in the same data center as the exchange or using a private connection for faster communication. WhiteBIT offers direct access to its exchange with trades processed in just 3 milliseconds, while Kraken provides cloud space and physical equipment installation options in its European data center.