DoubleZero co-founder: Retail traders cannot keep up with trading bots

​Trading bots and AI agents are playing an increasingly important role in cryptocurrency markets. Meanwhile, decentralized exchanges and prediction markets are gaining popularity. In an interview with Traders Union, DoubleZero co-founder Austin Federa explains what advantages retail traders still have, whether Solana can overtake Ethereum, and how new technologies could transform financial markets.

Why speed is becoming a critical factor in crypto trading

Cryptocurrency trading has expanded far beyond traditional exchanges. Today, transactions take place on centralized and decentralized platforms, as well as prediction markets. However, the infrastructure used to transmit market data has not always kept pace with these developments.

Much of this information still travels over the public internet. Network congestion and unpredictable routing can cause delays, particularly during periods of high volatility, when traders need to react to market movements as quickly as possible.

Austin Federa believes that existing infrastructure does not meet the demands of modern financial markets.

“We’re building dedicated network infrastructure to make connectivity and the flow of information faster and more predictable for traders of all sizes. There is a very real and tangible gap in networking and data infrastructure that we’re actively working to close.”

To address this problem, DoubleZero developed Edge, a service that delivers market data from Binance, Kalshi, Solana, and Hyperliquid. The company aims to reduce delays in market data delivery across trading venues.

Can retail traders compete with trading bots?

Algorithmic trading has played an important role in traditional financial markets for decades. The cryptocurrency industry is now following a similar path, with automated systems and trading bots executing an increasing number of transactions.

These programs can analyze prices and execute trades in fractions of a second. For retail traders, competing with professional firms equipped with powerful computing infrastructure has become a serious challenge.

However, Federa believes that individual traders can still have an advantage even without access to the fastest technology.

“Individual traders won't win on raw speed against firms built for it, but speed isn't the only edge. What matters for everyone is starting from reliable data.”

Meanwhile, artificial intelligence is gradually lowering the barriers to developing sophisticated trading strategies. Tools that previously required extensive technical expertise and resources are becoming accessible to a broader range of users.

“AI is making sophisticated strategies far easier to build, so the remaining gap is often access to clean, real-time market data.”

Market manipulation remains another concern. With trading spread across dozens of venues, market participants often struggle to get a complete picture of what is happening. According to Federa, better access to market data can help traders identify unusual price movements more quickly and make better-informed decisions.

Can decentralized exchanges overtake Binance?

Decentralized exchanges are gradually expanding their presence in the cryptocurrency market. They allow users to trade directly through blockchain networks without transferring custody of their assets to centralized platforms.

However, major centralized exchanges, including Binance, continue to play an important role in cryptocurrency trading. Whether decentralized platforms will eventually replace them remains an open question.

According to Federa, the rivalry between centralized and decentralized exchanges does not fully reflect how professional trading operates today.

“We're already seeing traders move between centralized exchanges, onchain markets, and prediction markets often within the same strategy.”

As these segments develop, demand is growing for infrastructure that enables information to move quickly between trading venues. At the same time, traders need efficient access to liquidity across different platforms.

“These markets are becoming increasingly interconnected, and the infrastructure connecting them needs to evolve so traders can access liquidity and information efficiently, regardless of where trading happens.”

Why prediction markets are attracting professional traders

Prediction markets are gradually evolving from a niche product into a distinct segment of financial trading. Platforms such as Polymarket and Kalshi allow participants to trade contracts based on the likelihood of various events occurring.

Interest in this sector is growing not only among retail users but also among professional trading firms. Their involvement could increase liquidity while placing greater demands on technological infrastructure.

“Prediction markets have a lot of room to grow, especially as institutional traders and market makers enter. Those firms bring the same expectations they have in traditional markets: reliable data, consistent connectivity, and professional-grade infrastructure.”

Kalshi has emerged as one of the platforms attracting professional traders. However, its operating model differs considerably from that of conventional cryptocurrency exchanges. Federa explains where prediction markets and cryptocurrency trading overlap.

“Kalshi is a regulated prediction market, so I wouldn't put it in the same category as a crypto exchange, but from a trading infrastructure perspective, there's a lot of overlap.”

According to Federa, firms involved in cryptocurrency trading are increasingly interested in prediction markets. As a result, the overlap between these segments could become more pronounced in the future.

Can Solana overtake Ethereum?

Before co-founding DoubleZero, Austin Federa spent many years at the Solana Foundation. This experience gave him firsthand insight into Solana's development and its focus on high performance and low transaction fees.

Solana and Ethereum take different approaches to blockchain infrastructure. Ethereum has an extensive ecosystem and continues to develop scaling solutions, while Solana focuses on processing large volumes of transactions within a single shared network.

“Having spent years working on Solana, I think its biggest advantage is that it was designed to support high-performance applications on a shared network. That architecture has proven particularly valuable for financial markets, where transaction speed, cost, and the ability for applications to interact directly all matter.”

Despite its high performance, Solana still trails Ethereum significantly in market capitalization, while Ethereum maintains a strong position thanks to its established ecosystem. Federa explains how he sees the competition between the two blockchains developing.

“Ethereum has a substantial ecosystem and a different approach to scaling. I expect both networks to continue developing, but Solana has demonstrated how much financial activity can move onchain when the underlying technology is fast and inexpensive enough.”

However, increasing blockchain throughput does not solve every infrastructure challenge. As networks grow, the quality of connections between validators and the speed of market data delivery become increasingly important.

What will the next generation of financial markets look like?

For decades, financial markets have operated under a familiar model involving intermediaries, fixed trading sessions, and restricted access to certain instruments. However, emerging technologies are gradually challenging the need for these limitations.

According to Austin Federa, the financial industry is entering a new stage of development in which the boundaries between traditional and cryptocurrency markets will become increasingly blurred.

“We're seeing the rise of what we call New Finance, the next generation of financial markets. More trading is moving onchain, AI is changing how markets operate, and products like perps, prediction markets, and tokenized assets are creating new opportunities.”

However, the transition to a new trading model presents certain challenges. Traditional exchanges and cryptocurrency platforms rely on different infrastructure, and bringing these markets closer together will require overcoming a range of technological obstacles.

“These markets are global, operate around the clock, and are attracting more and more sophisticated traders. As that happens, the infrastructure has to keep up.”

The development of new financial instruments could therefore transform not only how trading takes place but also the structure of global markets. As the boundaries between cryptocurrencies and traditional assets gradually blur, investors may gain more opportunities to trade beyond conventional exchange hours.