Introduction

Algorithmic trading has become an undeniable force in the crypto space. It promises efficiency and liquidity, allowing the market to run faster and smoother. But behind the promise lies a darker reality: market manipulation, where retail investors are often left holding the short end of the stick. This manipulation is particularly harmful in a decentralised market where the original idea was to create a level playing field for all. The decentralised nature of crypto should be about empowering individuals, yet algorithmic trading often reinforces the very power imbalances that decentralisation sought to break down.

I’ve spent enough time in this space to see both sides of the equation. Having dabbled in day trading back in late 2021, I quickly realised it wasn’t for me. The constant pressure of tracking multiple markets—Asia, Europe, the US—meant that I was up at all hours, trying to stay ahead of market openings and closings. It became all-consuming, and I noticed it was having an unhealthy effect on my relationship with investing. Instead of playing the long game and understanding the emerging trends and cycles, I found myself caught up in the short-term volatility. As crypto traders, we can quickly get sucked into the constant flux of prices, but long-term strategies often yield more consistent results.