In the fiat world, trading futures is like playing poker blindfolded. Yes, you have market information, reports, maybe even some insider tips, but the majority of the information is hidden from view. In the crypto world, all the cards are on the table. Want to know how many stop-losses are set at the $25,000 level for Bitcoin? No problem! You can use resources like Coinglass or Laevitas to see this information laid out clearly.

Imagine Bitcoin hovering around the $25,500 mark. You check Coinglass and see a massive number of stop-losses set at $25,000. A cunning thought crosses your mind: what if this information becomes widely known? Cryptocurrency prices could start dropping like dominoes once they reach that level. Automatic sell orders would trigger, prices would fall, and then savvy traders would start shorting the market, driving the price even lower. The result is a kind of self-fulfilling prophecy—the price indeed drops once it hits the level with a large number of stops.

This example of stop-loss availability highlights one of the main features of the cryptocurrency futures market—its absolute transparency. Such openness changes the rules of the game. In the fiat world, much crucial information is locked behind closed doors, but here, everything is in the open. As a result, you must consider not just your strategic thinking but also the assumption that other players see the same picture you do.

In the crypto market, you can access a vast amount of other valuable information. For instance, resources like Glassnode or CryptoQuant allow you to track the movement of funds between wallets and exchanges, signaling potential large transactions or fund withdrawals. Open Interest is another important indicator available to anyone trading cryptocurrency futures. It shows how many contracts are in the open position, which can indicate potential trend changes.

This transparency is both an advantage and a trap. On the one hand, it allows for more accurate market behavior predictions. On the other hand, as in the stop-loss example, if the market "understands" where the order flow is headed, it can lead to avalanche-like price movements, especially in a highly volatile market like crypto.

Algorithms are machines that monitor the market 24/7, eagerly consuming data and making decisions based on cold logic. But what happens when all the moves are out in the open, and any algorithm can see what others see?

Algorithmic trading in the world of fiat markets is a kind of high-tech craft that requires fine-tuning. Here, you have to consider numerous factors: news, economic indicators, political events. However, in the cryptocurrency market, with its transparency and openness, much changes. In this world, algorithms can capitalize on information unavailable in fiat markets.

Imagine an algorithm that not only tracks the price but also has access to information about large clusters of stop-losses. Such an algorithm can predict likely price movements with high accuracy. For example, if there are many stop-losses concentrated at the $25,000 level, the algorithm can be pre-configured for aggressive selling as the price approaches this level. As a result, it can secure profits by anticipating a market collapse triggered by the mass execution of these orders. But here's an interesting dilemma: if all algorithms start acting on the same information, they can create volatility themselves. One algorithm starts selling, the price begins to fall, other algorithms notice this and join the game, causing an avalanche of sales. The result is not just the prediction of an event but its creation—a situation where algorithms cause the very movements they initially tried to predict.

However, such transparency also poses certain challenges. Algorithms used to certain strategies in fiat markets may be unprepared for aggressive actions by competitors. In traditional markets, many things remain behind the scenes, and algorithms can react more calmly to what is happening. In the crypto world, when everyone sees everything, you have to consider many more factors and act much faster.

Let's take another example. Information about a large volume of liquidity appears at a certain price level. Algorithms may try to "catch" this liquidity, but if other algorithms notice this, they can change their behavior, creating false signals. As a result, an algorithm relying on certain market behavior may fall into a trap, responding to a false signal and incurring losses.

But let's not be overly dramatic. Transparency in the cryptocurrency market also opens new horizons for algorithms. Now they can consider not just price movements but also metrics like fund flows on exchanges, changes in open interest, the distribution of orders on exchanges, and much more. This data set allows for the creation of more complex and accurate algorithms capable of making decisions based on numerous factors, which was previously impossible.

Ultimately, transparency in the cryptocurrency market makes algorithmic trading more complex but also much more exciting. It requires algorithm developers to be more inventive and quick to react to what is happening. In this world, every step is in the open, and to succeed, you need not just to follow the market but to be able to predict and shape it. As the saying goes, "If you think your algorithm is smart, know that on the crypto market, there's always someone even smarter." This rule perfectly reflects the realities of algorithmic trading in the world of cryptocurrency futures. Here, transparency is not just a feature; it's a true test of your algorithm's strength. If you can pass it, you'll reap the rewards.