Bitcoin is of great appeal to investors and traders all over the world. However, the price volatility is also turning away a lot of potential users, including consumers and investors. The new Time Weighted Average Price Bitcoin trading algorithm may help relieve some of those concerns. That being said, it is not an ideal solution for everyone. What the Time Weighted Average Price algorithm does is allow users to save money and headaches when dealing with Bitcoin. Albeit the volatile price swings seem to have become less common, one can never rest on their laurels either. This new algorithm lets users benchmark their trades, and reduce the risk factor. Not everyone will be looking to improve their trading performance, though. TWAP Seems to be targeting those users primarily, as it provides Bitcoin price benchmarks. Then again, such a tool could be useful for retailers as well. Not every merchant will convert the full Bitcoin payment to fiat currency right away. TWAP Is Not For Everyone Once people gain valuable insights into the volatile nature of Bitcoin through a convenient manner, they can determine when it makes sense to hold Bitcoin. At the same time, this will still require those users to be able to trade when the information becomes available. After all, the objective is to be able to trade at the new prices for maximal revenue gains. Some people may be wondering how powerful this solution can be. So far, the algorithm seems to do its job without a hitch. During both high and low volatility, TWAP can hold its own without many issues. Getting the average Bitcoin price at any given moment is very easy, which is what this algorithm is designed to provide. One thing to take into account is how this solution will not turn […]
