Trading in the cryptocurrency market often comes with challenges—especially when executing large orders. Sudden price movements, slippage, and market impact can all affect the final execution price. To address these concerns, a powerful new tool has arrived: the Time-Weighted Average Price (TWAP) order type is now live in the Crypto.com App. This advanced trading feature empowers users to execute large trades more efficiently, with reduced slippage and minimized market disruption.
Whether you're a seasoned trader or managing substantial positions, TWAP offers a smarter way to trade by automating order execution over a chosen timeframe.
What Is Time-Weighted Average Price (TWAP)?
Time-Weighted Average Price (TWAP) is an algorithmic trading strategy designed to break down large orders into smaller, time-distributed trades. Instead of placing a single large buy or sell order that could influence the market price, TWAP spreads the order evenly across a specified duration. The goal? Achieve an average execution price that closely reflects the true market value over time.
This method is particularly effective in volatile markets like cryptocurrency, where sudden price swings can lead to poor fills. By distributing trades at regular intervals—say every few minutes—TWAP helps mitigate price impact and reduces the risk of slippage.
👉 Discover how strategic order execution can improve your trading results.
Key Benefits of Using TWAP Orders
Why should you consider using TWAP for your crypto trades?
- Reduced Slippage: Large orders placed all at once may not fill at expected prices, especially in low-liquidity conditions. TWAP minimizes this risk by executing smaller chunks over time.
- Lower Market Impact: Avoid "moving the needle" on price by preventing concentrated buying or selling pressure.
- Automated Execution: No need to manually place multiple small orders. Set it once and let the system handle the rest.
- Improved Price Averaging: Benefit from a more balanced average entry or exit price across fluctuating market conditions.
For traders dealing with high-value transactions, these advantages translate into greater control and potentially better returns.
How TWAP Works in the Crypto.com App
The implementation of TWAP within the Crypto.com App makes sophisticated trading accessible to more users. Here’s what you need to know about its current functionality:
Supported Assets and Pairs
At launch, TWAP supports 23 major tokens, allowing both buy and sell orders. You can trade these against either cryptocurrencies or six fiat currencies, including USD, EUR, and GBP—offering flexibility for global users.
Order Parameters
Each TWAP order must meet specific criteria:
- Minimum Duration: 5 minutes
- Maximum Duration: 24 hours
- Minimum Trade Value: $100
- Maximum Trade Value: $100,000
These limits ensure stability and fairness while accommodating a wide range of trading strategies.
Execution Rules
Once submitted, a TWAP order cannot be edited. However, you retain full control by being able to terminate the order at any time before completion. This gives you peace of mind without sacrificing automation.
Additionally:
- Only one active TWAP order per token is allowed.
- A maximum of three concurrent TWAP orders can run simultaneously.
This structure prevents system overload and maintains performance during peak usage.
How to Place a TWAP Order: Step-by-Step
Getting started with TWAP is simple. Follow these three steps:
- Open the Crypto.com App → Tap “Buy” or “Trade” → Select your desired token → Choose “Create TWAP Order”
On the TWAP Order page:
- Enter the total amount to buy or sell
- Set the order runtime (how long the order will execute over)
- Choose the settlement currency (e.g., USD, EUR, or another crypto)
- Tap “Review Order” → Confirm → Enter your passcode to authorize
That’s it. Your order will now execute automatically in optimized intervals until completion.
👉 Learn how professional traders use timing strategies to maximize efficiency.
Frequently Asked Questions (FAQ)
What happens if the market price changes drastically during a TWAP order?
TWAP does not guarantee a specific price—it aims to achieve an average price over time. If volatility spikes, individual sub-orders may fill at varying rates, but overall impact is still reduced compared to a single large trade.
Can I cancel a TWAP order after it starts?
Yes. While you cannot edit a submitted TWAP order, you can terminate it at any time before full execution. Any completed portions remain settled; pending segments are canceled.
Is TWAP suitable for all types of traders?
TWAP is ideal for those placing larger orders (typically $1,000+). It's less beneficial for small trades where slippage risk is already minimal.
Does TWAP work during weekends or low-volume periods?
Yes. The algorithm continues executing at scheduled intervals regardless of market activity. However, lower liquidity may increase slippage on individual fills—something to consider when setting runtime.
How is TWAP different from other order types like limit or market orders?
Unlike standard limit or market orders that execute immediately (or near-immediately), TWAP spreads execution over time. It’s designed for strategic, large-volume trading rather than instant fills.
Are there fees associated with using TWAP?
There are no additional fees for using the TWAP feature itself. Standard trading fees apply based on your CRO stack level and account tier.
Optimizing Your Use of TWAP
To get the most out of TWAP, consider these best practices:
- Use longer durations in highly volatile markets to smooth out price fluctuations.
- Avoid placing TWAP orders right before major news events unless you're comfortable with potential volatility.
- Combine TWAP with technical analysis to determine optimal entry/exit windows.
- Monitor completed TWAP executions in your transaction history to evaluate performance over time.
👉 See how advanced trading tools can refine your investment approach.
Final Thoughts
The introduction of the Time-Weighted Average Price (TWAP) order type marks a significant step forward in democratizing advanced trading tools for everyday users. By enabling smoother, more controlled execution of large trades, Crypto.com continues to enhance its platform’s utility for both retail and experienced traders.
As digital asset markets mature, features like TWAP become essential for managing risk and optimizing trade outcomes. Whether you're dollar-cost averaging into a position or exiting a large holding discreetly, this tool gives you greater precision and confidence.
Remember: while tools like TWAP improve execution quality, they don’t eliminate market risk. Always conduct your own research, understand your risk tolerance, and trade responsibly.
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