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Yes. Treating crypto like a high velocity stock exchange gets you exactly the same thing that you get from a high velocity stock exchange; aka a system that ju

• PaulHoule 4y ago
  It's actually a system that screws (some of) the big guys. The "little guy" enjoys very low commissions and market orders with bid/ask spreads less than they ever were. Market makers are happy to give cheap liquidity to "uninformed" traders whose trades don't move markets. (People on Robinhood get very good access if they want to trade sensibly; I wouldn't blame the market makers primarily that many of them use stock trading as a substitute for sports betting.) If you like trading limit orders on the theory that odds are very good you can set a limit 1% below the current price and get a fill thanks to Brownian motion, they are going to outtrade you because they've got answers to the risk that a limit order sometimes fills not because of Brownian motion but because the market is moving sharply in one direction and you don't. Market makers do not want to trade with large traders who know something that not everybody knows and whose trades may be a harbinger of market moves that will go against the market makers. Market makers want to make those traders pay through the nose for liquidity and that is why large trainers are always complaining that "the prices I see aren't for real."
  • jrm4 4y ago
    Absolutely, I was mentioning the whole thing in a summary kind of way. I'm definitely aware that power can shift greatly -- but it does seem to, on balance, extract money from little guys to big guys, even if the identity of the big guys sometimes changes.