Crypto Exchanges Offer Colocation Services to Boost Trading Speed

Crypto exchanges are offering colocation services to support digital currency trading at scale. Colocation helps reduce latency by placing a company's trading server close to the exchange server, reducing the distance orders and price data have to travel.

Each exchange has its own location, connection type, access rules, and speed. Companies should compare these details before choosing a provider. Some exchanges offer cloud space, while others allow clients to install physical equipment in their data centers.

The WhiteBIT cryptocurrency colocation service provides direct access to the exchange, with trades carried out in 3 milliseconds. Kraken offers cloud space and a European data center with a setup that can send and return data in about 200 microseconds. Gemini gives clients direct connections to its system in the Equinix NY5 data center.

Crypto mining colocation is a different service, placing mining machines in special mining data centers that provide power, cooling, internet, and physical space. Companies should understand which service they need: exchange colocation for faster trading or mining colocation for running mining machines.