Unlocking the Potential of Crypto Trading: How Low-Latency Solutions Drive Success

Southern Corridor: Low-Latency, High-Capacity Network Solutions by BSO & EllaLink

Time to read: 8 minutes

Click here to read the article in full

In this article

• TLDR

• The Crypto Market:  Ever Growing and Evolving

• The Need for Speed: Why Low Latency is Crucial in Crypto Trading

• The challenges and consequences of Latency

• Real-world success stories with BSO

• Enhance your trading experience with Low Latency solutions.

TLDR:

In the fast-paced world of cryptocurrency trading, speed is everything. Low latency - the delay between initiating and completing a trading action—can make or break profitability.  BSO, a leader in network solutions, has introduced Crypto Connect, a cutting-edge platform designed to revolutionize trading by minimizing latency issues.

Milliseconds matter.  Here's how BSO and Crypto Connect are the game changer:

• Low Latency Advantage: Reduces delays in trade execution, enabling traders to capitalize on fleeting market opportunities.

• Enhanced Efficiency: Eliminates risks like price slippage and boosts algorithmic trading performance.

• Global Network Infrastructure: Over 240 Points of Presence (PoPs) in 33 markets ensure seamless connectivity across major hubs like London, New York, and Singapore.

• Direct Cloud Connectivity: Connect securely to leading providers like AWS, Azure, and Google Cloud, ensuring uninterrupted access to critical trading data.

• Access to Major Exchanges: Links to top crypto exchanges and market data providers, offering unparalleled liquidity and data access.

• Reliability & Security: Provides 99.99% uptime, deterministic latency, and robust security protocols. 

Success stories, such as partnerships with CryptoStruct and Multipool, show how Crypto Connect empowers traders to enhance performance and profitability.

For traders looking to gain a competitive edge in the fast-paced crypto market, BSO’s Crypto Connect is the ultimate solution. Explore their services to stay ahead in the millisecond race.

Contact BSO today for tailored global connectivity solutions.

The Crypto Market: Ever Growing and Evolving

The cryptocurrency market continues to evolve, captivating institutional investors and retail traders alike. As this dynamic industry grows, the demand for cutting-edge trading solutions has never been greater. Among the most critical aspects of crypto trading is low latency - the key to staying competitive in a market where milliseconds can translate to profit or loss.

BSO, a global leader in low-latency solutions, is revolutionising the crypto trading landscape with its Crypto Connect offering. Trusted by top-tier financial institutions, BSO's solutions empower traders to execute faster, trade smarter, and maximise profitability.

The Need for Speed: Why Low Latency is Crucial in Crypto Trading

Latency is known as the delay between initiating and executing an action. Latency plays a pivotal role in high-frequency trading (HFT) and for crypto traders, low latency is not a luxury but a necessity. 

Low latency means that crypto traders are able to receive critical information about changes in the trading market in real-time without any form of delays that can affect their profits. 

Diagram showing how latency works.  Source: Geeks for Geeks

Challenges of Latency in Crypto Trading

1. Arbitrage Opportunities

Price discrepancies across exchanges often last for mere moments. Traders are extremely reliant on low-latency networks. This reduces the risk of losing these lucrative opportunities. Traders want to be able to access the latest trading information and data at all times without delay.

For example, a trader that finds a stock trading at $400 on the NSE, while on the bSE it’s trading at $400,25, the price difference presents an arbitrage opportunity. The trader will look to purchase shares from the NSE and sell shares on the BSE simultaneously. However, with a high latency issue, when the order was executed, the price discrepancy had changed. This results in a loss for the trader.

This showcases that high latency disadvantages all traders and can cause major losses in the long run. 

2. Order Execution Speed

Execution speed is defined as the amount of time between when a broker receives your trade order until completion. The faster the speed, the quicker a broker can act on that order and the trade can be finalised. Even a millisecond delay can result in trades being executed at less favourable prices, impacting profitability. 

Lower latency empowers crypto traders to execute trades much faster, enabling them to capitalise on market opportunities.

3. Reduced Trading Efficiency

High latency lowers a trader's ability to react swiftly to market volatility, which is critical in the fast-moving world of cryptocurrency.

4. Price Slippage

High latency can also result in price slippage. This means that the difference in the time of when the trade is made to when it is executed, the price of a stock or crypto has changed.

For example, a crypto trader might want to buy 1,000 units of a cryptocurrency valued at $50 each. However, due to high latency, by the time the trade is executed, the price of the cryptocurrency has increased to $51. As a result, the trader experiences price slippage of $1,000, directly impacting their profitability.

How Latency Has Impacted Trading Outcomes

Latency is known to have a negative impact on the trading industry. Just a small lag can be the difference between a huge profit or loss. But just how important is achieving low latency for traders today?

BSO has been changing the way companies operate with better network connectivity. BSO was able to assist Sucden Financial with better network diversity by implementing two diverse paths between London and Hong Kong and one diverse BSO terrestrial route for maximum stability. This gateway runs at 172ms RTD and the second route that utilises subsea cables, runs at 225ms RTD. These new network routes have helped Sucden Financial to reach lower latency and better network uptime. This allows for their brokers to confidently deliver to their clients. 

Since launching the solution, BSO has reduced latency to 170ms RTD between London and Hong Kong as part of BSO’s ongoing investment in network optimisation.

This is a clear indication that low latency networks can effectively assist traders and their outcomes. If there is any sort of delay, this can negatively impact their results.

Gaining a Competitive Edge

Low-latency solutions, such as BSO’s Crypto Connect, give traders an undeniable advantage. Crypto Connect is the most comprehensive low latency crypto trading solution in the market. BSO is the only trading solution that is able to reach such low latency. 

By minimising delays, traders are able to execute trades faster than competitors, respond instantly to market data and price fluctuations, and increase the accuracy of their trading strategies and overall performance.

BSO Crypto Connect: A Comprehensive Solution for Low-Latency Crypto Trading

What is Crypto Connect? 

BSO’s Crypto Connect is a tailored solution for modern crypto traders, addressing the specific challenges of latency in the industry. Crypto Connect was designed to ensure that crypto traders don’t experience latency issues and can make their trades with the best speed possible. 

Here’s how Crypto Connect can benefit crypto trading:

Key Features and Benefits

Global Network Infrastructure

With more than 240 Points of Presence (PoPs) in 33 markets, BSO’s extensive network ensures unmatched cloud connectivity. Major hubs like London, New York, Tokyo, and Singapore are seamlessly linked to deliver lightning-fast performance. Our network connects to more than 75 on-net internet exchanges and over 30 stock exchanges, allowing us to provide more than 99.99% of network availability to crypto traders.

Our Network Map - View Here

2. Direct Cloud Connectivity

BSO enables direct and secure connections to leading cloud providers, including AWS, Azure, and Google Cloud. This integration enhances trading efficiency and ensures uninterrupted access to critical resources. With Crypto Connect we are able to provide cloud connections from data centres to cloud and between clouds, connecting crypto firms to exchanges. By having an extensive cloud connectivity network, we are able to facilitate new exchanges as soon as they come online.

3. Access to Major Crypto Exchanges

Crypto Connect links traders to prominent crypto exchanges as well as market data providers such as Gemini, Bequant, and Kaiko. This allows BSO to offer crypto traders unparalleled liquidity and market data access.

Deterministic Latency, Reliability and Security

Deterministic Latency

Unlike traditional networks, BSO’s solution uses static, low-latency paths. This ensures consistent and predictable performance, vital for algorithmic and high-frequency trading strategies.

Reliability

BSO is trusted to deliver the best network availability. With 99.99% network uptime and 24/7/365 support from our operations and technical team, we offer an incredible global customer support experience.

Security

With our robust security measures such as data encryption, secure network infrastructure, regular security audits and compliance protocols, BSO provides a dependable trading environment.

Real-World Success: BSO’s Impact in Action

Partnership with CryptoStruct

BSO's collaboration with CryptoStruct underscores its commitment to innovation. By leveraging BSO’s Crypto Connect, CryptoStruct has enhanced its trading platform, delivering unparalleled connectivity between exchanges and consolidated market data via a single feed.

“We engaged BSO because of its international reach, reputation for ultra low latency connectivity, and experience in highly regulated financial markets. These qualities have proven true; however, it is BSO’s pace and flexibility that have stood out to us again and again”.

- Thomas Schmeling, CEO of CryptoStruct

Collaboration with Multipool

Through its partnership with Multipool, BSO enables ultra-fast, low-latency trading on Multipool’s platform. This has helped Multipool users optimise their trading strategies, accessing key data centres like Equinix NY4 and CME seamlessly. The combined tech between BSO and Multipool offers users a comprehensive suite of fully decentralised trading tools that deliver the best DEX price executions within the industry.

Customer Experience with Crypto Connect

“Since we have been using the BSO Crypto Connect solution, we have noticed a clear improvement in the performance of our trading and execution algorithms, which has allowed us to substantially increase the profitability of our trading models as well as the quality of customer service.”

- Guilhem Chaumont, CEO & Founder of Flowdesk

Conclusion - Why BSO’s Crypto Connect Is the Best Choice

In the high-stakes world of crypto trading, speed is the ultimate differentiator. Low latency not only empowers traders to execute strategies efficiently but also unlocks new opportunities for growth.

BSO’s Crypto Connect offers the perfect combination of global network infrastructure, cloud connectivity, and deterministic latency, ensuring that traders can stay ahead of the curve in a competitive market. Along with this, users experience unwavering reliability throughout the year and security measures to ensure that all data is protected.

Ready to elevate your crypto trading performance?

Get in touch and trade faster with Crypto Connect.