Crypto trading has evolved from a niche, experimental pursuit into a highly competitive landscape dominated by sophisticated quantitative strategies. Early participants transitioned from manual mining and discretionary trading on platforms like Mt. Gox and BitMEX to building complex statistical arbitrage and high-frequency trading systems. Success in this environment relies on identifying persistent factors, such as "quality minus junk" tilts and funding rate signals, while maintaining operational resilience across fragmented venues. As centralized exchanges increasingly adopt traditional finance infrastructure, the barrier to entry rises, forcing traders to seek alpha in niche markets or prediction platforms. Leveraging custom infrastructure and LLMs for data analysis allows smaller teams to maintain an edge, though the shift toward institutional-grade market structures necessitates constant adaptation and a focus on execution efficiency over simple directional bets.
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