Abstract

Algorithmic and high-frequency trading gained significant popularity in traditional financial market transactions in the early 2000s. While cryptocurrency was introduced in 2009, it was not until 2015 that cryptocurrency trading experienced explosive growth due to advancements in technologies supporting the cryptocurrency ecosystem and economic uncertainties. Algorithmic trading strategies and high-frequency automated trading have been used in cryptocurrency trading. However, the lack of historical data and the volatility of the cryptocurrency market create unique challenges and impact the performance of these models and strategies. Additionally, cryptocurrency is an unregistered security, and cryptocurrency exchanges remain unregulated, which has generated significant concerns for global securities governing bodies. This research provides a literature review and document analysis of peer-reviewed journal articles and professional literature and identifies themes regarding algorithmic trading and the cryptocurrency ecosystem.

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