A speed bump in cryptocurrency refers to a temporary delay in the execution of a trade or transaction. This delay is often intentionally implemented to prevent automated trading systems from taking advantage of small price discrepancies in the market.
Speed bumps are typically used in decentralized cryptocurrency exchanges to ensure a fair and level playing field for all traders. By slowing down the execution of trades, speed bumps help prevent high-frequency traders from profiting off of small price differences by executing trades faster than other market participants.
This mechanism can also help prevent market manipulation and ensure that the market operates in a more orderly and efficient manner. Speed bumps are a tool used by exchanges to promote fairness and transparency in the cryptocurrency market.
