Algorithmic trading has emerged as a key strategy in crypto, allowing traders to automate trades based on predefined rules. Among these strategies, execution algorithms focus on efficiently entering or exiting positions to minimize market impact. Time-weighted average price (TWAP) divides large orders into smaller trades executed evenly over time, making it beneficial for low-liquidity situations. In contrast, volume-weighted average price (VWAP) computes an average price considering trading volume, offering insights into market value and positioning trades effectively. TWAP is ideal for discreet trading, while VWAP is suited for active markets. Real-world examples highlight these strategies, such as MicroStrategy's $250 million Bitcoin TWAP purchase and a crypto VC firm achieving better prices using TWAP for a smaller token. Understanding when to apply TWAP and VWAP can significantly enhance trading outcomes.

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