Crypto trading latency is one of the most confusing topics for traders. Marketing claims of "nanosecond speeds" clash with reality, leaving traders unsure what they actually need or can realistically achieve.
This FAQ provides honest, technical answers to the questions we hear most from traders evaluating speed requirements and data providers.
Speed and Performance Questions
What is good latency for crypto trading?
The answer depends entirely on your trading strategy:
Portfolio monitoring: 1-5 seconds is perfectly fine
Swing trading: 500ms-1 second works well
Active day trading: 50-500ms is sufficient
Professional arbitrage: 5-50ms required
High-frequency trading: Sub-millisecond with custom infrastructure
Key insight: Most profitable trading strategies don't require extreme speed. Success depends more on market insight, risk management, and execution consistency than millisecond optimization.
What is the fastest crypto API available?
No single API is "fastest" for all use cases. Speed depends on:
- Your server location relative to data centers
- Which exchanges you need data from
- Your infrastructure setup (shared vs dedicated)
- Data type requirements (tick vs OHLCV vs order book)
- Protocol choice (WebSocket vs REST vs FIX)
CoinAPI provides the fastest technically achievable speeds at each infrastructure tier:
- Shared hosting: 50-500ms (optimized for shared resources)
- Enterprise: 5-50ms (dedicated infrastructure)
- Custom HFT: Sub-millisecond possible (co-location required)
Can I get microsecond latency with standard API subscriptions?
No. Microsecond performance requires:
- Co-location in exchange data centers
- Dedicated network infrastructure
- Specialized hardware (low-latency NICs, kernel bypass)
- Custom software optimization
- Significant ongoing investment ($50,000+ annually)
Why standard subscriptions can't deliver microseconds:
- Shared infrastructure creates resource contention
- Internet routing adds variable delays
- Geographic distance limits speed of light
- Standard protocols have processing overhead
Reality check: Marketing claims of "microsecond APIs" typically apply only to custom enterprise setups costing $100,000+ annually.
How much does ultra-low latency crypto data cost?
Realistic pricing tiers:
Shared infrastructure: $29-500/month
- Latency: 50-500ms
- Good for: Most trading strategies
- Includes: Standard WebSocket/REST access
Enterprise dedicated: $2,000-10,000/month
- Latency: 5-50ms
- Good for: Professional arbitrage, institutional trading
- Includes: Dedicated servers, FIX API, priority support
Custom HFT setup: $15,000-100,000+/month
- Latency: Sub-millisecond possible
- Good for: Market making, HFT operations
- Includes: Co-location, direct connects, custom engineering
Total cost reality: True microsecond performance often exceeds $200,000 annually when including infrastructure, development, and maintenance.
What affects crypto API latency the most?
Factors in order of impact:
- Infrastructure tier (shared vs dedicated vs co-located) - 90% of latency difference
- Geographic distance to data centers - Can add 10-100ms
- Exchange choice - Some venues are inherently slower
- Protocol type (FIX < WebSocket < REST) - 1-50ms difference
- Your application efficiency - Often the biggest bottleneck
Surprising truth: Your code architecture often adds more latency than network transmission. Optimizing your application can be more effective than upgrading APIs.
Cost and Infrastructure Questions
Is faster always better for crypto trading?
Usually not. Most profitable trading depends more on:
- Market insight quality - Better analysis beats faster execution
- Risk management discipline - Proper position sizing prevents losses
- Execution consistency - Systematic approach outperforms speed
- Capital allocation - Smart position sizing matters most
Speed matters most for:
- Market making operations (providing liquidity)
- Pure latency arbitrage strategies
- High-frequency statistical models
- Large position delta hedging
For most traders: "Fast enough" infrastructure (50-500ms) often outperforms "fastest possible" due to better cost-efficiency and reliability.
How do I know if I need faster data?
Signs you might need speed upgrades:
- Your profitable trades are getting front-run consistently
- Arbitrage opportunities disappear before you can execute
- You're losing money specifically due to execution delays
- Your strategy's edge depends on being first to market
Signs speed won't help:
- Your strategy is based on longer-term analysis
- You're losing money due to poor market timing (not execution speed)
- Your trades are based on fundamental or technical analysis
- You're focused on portfolio management or swing trading
Test first: Use your current infrastructure to validate profitability before investing in speed upgrades.
What's the difference between exchange latency and API latency?
Exchange latency: Time for the exchange to process and publish data
- Varies by venue (Binance ≠smaller exchanges)
- Typically 1-50ms internal processing
- API providers can't improve this
API latency: Time to deliver exchange data to you
- Affected by infrastructure, geography, protocols
- This is what API providers can optimize
- Typically 5-500ms depending on setup
Total latency = Exchange latency + Network transmission + API processing + Your application processing
Key insight: CoinAPI can optimize API delivery, but we can't make slow exchanges faster. Choose your exchanges wisely for speed-critical strategies.
Provider and Technology Questions
Is CoinAPI the best crypto data provider for speed?
CoinAPI delivers the fastest technically achievable latency at each infrastructure level:
Our advantages:
- Transparent performance tiers (no misleading claims)
- Fastest possible speeds for shared, enterprise, and custom setups
- Global data center presence for regional optimization
- Protocol flexibility (WebSocket, FIX, REST)
- Honest guidance on what infrastructure you actually need
When we're the right choice:
- You need normalized data across multiple exchanges
- You want transparent pricing and performance expectations
- You're looking for scalable infrastructure that grows with you
- You value honest technical guidance over marketing hype
When we might not be right:
- You only need data from 1-2 specific exchanges (direct connection may be cheaper)
- You're building basic portfolio tracking (free APIs may suffice)
- You have unlimited budget for Bloomberg Terminal-level solutions
Do I need co-location for profitable crypto trading?
For most traders: No. Co-location is only necessary for:
- High-frequency market making
- Pure latency arbitrage strategies
- Microsecond-sensitive statistical models
- Very large position delta hedging
Co-location requirements:
- Physical presence in exchange data centers
- Custom network infrastructure
- Specialized development team
- $100,000+ annual commitment
Alternative approaches that work well:
- Enterprise cloud infrastructure (5-50ms latency)
- Regional optimization (servers near exchange data centers)
- Strategy adaptation (focus on longer-duration opportunities)
Reality check: Many profitable crypto trading operations use enterprise cloud infrastructure rather than co-location, focusing on strategy quality over pure speed.
Getting the Right Speed for Your Strategy
The key to crypto trading latency isn't getting the fastest possible speeds—it's getting the right speed for your strategy at the right cost.
Questions to ask yourself:
- What's my actual strategy timeframe?
- How much latency can I tolerate before losing edge?
- What's my budget for infrastructure improvements?
- Will faster data actually improve my profitability?
Recommendation: Start with enterprise-grade infrastructure (5-50ms) to validate your strategy profitability, then upgrade to custom solutions only if speed is specifically limiting your returns.
Ready to optimize your trading infrastructure? Learn more about technical requirements in our comprehensive Crypto Trading Latency Guide or contact our solutions team for personalized infrastructure recommendations.
Have more latency questions? Share your specific requirements in the comments below, and our engineering team will provide guidance on the most cost-effective approach for your trading strategy.
