How does latency impact success in Crypto Arbitrage Bot Development?
How does latency impact success in Crypto Arbitrage Bot Development?
Latency plays a critical role in the success of Crypto Arbitrage Bot Development because arbitrage opportunities exist for only a few seconds or even milliseconds. Any delay in market data retrieval, price comparison, order placement, or exchange response can cause price gaps to disappear before trades are executed. High latency increases the risk of slippage, partial fills, or failed trades, directly reducing profitability. Therefore, low-latency infrastructure, optimized APIs, and fast execution engines are essential to capitalize on arbitrage opportunities effectively.
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