TWAP vs. VWAP in crypto trading: What’s the difference?

Quick Summary:

TWAP, or time-weighted average price, is one of the simplest and most widely used execution strategies in algorithmic crypto trading. At its core, TWAP helps traders break down a large order into smaller trades, executed evenly over a set period of time — regardless of market volume.The goal?

They could set up an order to buy BTC when the price dips below the daily VWAP — indicating it’s trading below the volume-weighted average and potentially undervalued — and sell when it rises above, suggesting overvaluation or profit-taking opportunities. Institutional clients and high-volume traders, in particular, rely on Kraken’s VWAP functionality for precision in the fast-moving crypto market.

VWAP: Key differences to be aware of TWAP and VWAP in crypto trading Traders and institutions use TWAP and VWAP to minimize market impact and secure better execution prices. Let’s look at two real-world examples that show how these algorithms perform when the stakes are high.1.

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Article Details

Author / Journalist: Cointelegraph by Bradley Peak

Category: Crypto

Markets: United States

Topics: Twap Crypto Trading Price Market Traders Vwap Time Average

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-04-17 @ 16:44:00 (1 weeks ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 1308 words

Reading Time: 8 minutes read

Sentences: 61 lines

Sentence Length: 22 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 27965597

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About Coin Telegraph

Main Topics: Crypto

Official Website: cointelegraph.com

Update Frequency: 39 posts per day

Year Established: 2013

Headquarters: United States

News Last Updated: 7 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #11

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