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What Is the Operational Challenge of Using Cold Storage for High-Frequency Trading?

Cold storage introduces latency and manual steps, which are incompatible with the near-instantaneous access required for HFT.
Greeks.Live14.11.25

What Is the Operational Challenge of Using Cold Storage for High-Frequency Trading?

The primary challenge is the latency and manual intervention required to move assets from offline cold storage to an online hot wallet for trading. High-frequency trading (HFT) demands near-instantaneous access to assets for rapid execution.

The security protocols of cold storage, such as multi-signature approval and physical air-gapping, introduce delays that are incompatible with the speed requirements of HFT.

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