Getting Started with Cryptocurrency Algorithmic Trading

Summary

This beginner FAQ distinguishes automated trading from quantitative strategy research. Programs can connect to exchanges through APIs to place trades or perform supporting tasks, while profitable strategy design is a separate and harder challenge. It introduces REST and WebSocket access, API keys, exchange and programming choices, and the option of using a trading platform or writing a bot directly. It also recommends starting with small practical programming tasks and learning by building.

Key ideas

• Automated trading uses exchange APIs to carry out trading rules or supporting tasks.
• REST requests retrieve data when asked, while WebSocket connections can push updates.
• API credentials may grant access to account information and trading, so they must be protected.
• Backtests are useful references but cannot establish future profitability.
• The article identifies arbitrage, market making, and cross-exchange trading as strategy categories while noting that competition can erode returns.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.