Even though at first, since 1980 the term Dark Pool was used in the stock world, nowadays it is also used in the crypto world, especially by big capitals or whales.
What are dark pools?
Dark pools are special cypto exchanges for whales that are not accessible to retail/public traders, they can take the form of private crypto exchanges or special forums for big crypto trading.
Dark pool function
The main function of Dark poll is to facilitate block trading by big investors, both individuals and institutions so that it will not affect the price of the crypto market, because if there is a big sale of crypto on regular crypto exchanges, the price will drop and vice versa if there is a purchase of crypto in large quantities then the price of crypto will go up.
When entering the Dark pool whale does not place orders (because there is no order book), so it can make transactions without knowing the amount but after execution you can see the transactions on the blockchain.
Based on the basic understanding of the dark pool above, there are at least some advantages of trading crypto in the dark pool, which we will describe below:
1. Market Sentiment Remains Stable
The trading of whales is carried out secretly, so market sentiment will remain stable before the transaction is executed.
2. Price Fixes.
The price agreement is determined based on the average of the bid and ask prices. So traders can acquire crypto at a higher or lower price than the market rate.
3. No Slippage
In Dark pool, transactions are carried out in block trading so that there is no difference between the price at the time of the transaction and the price at the time of execution.
4. Secure User Privacy Data.
Anonymous transactions, users do not need to display personal data, let alone KYC, according to the original purpose of Bitcoin.
What are dark pools?
Dark pools are special cypto exchanges for whales that are not accessible to retail/public traders, they can take the form of private crypto exchanges or special forums for big crypto trading.
Dark pool function
The main function of Dark poll is to facilitate block trading by big investors, both individuals and institutions so that it will not affect the price of the crypto market, because if there is a big sale of crypto on regular crypto exchanges, the price will drop and vice versa if there is a purchase of crypto in large quantities then the price of crypto will go up.
When entering the Dark pool whale does not place orders (because there is no order book), so it can make transactions without knowing the amount but after execution you can see the transactions on the blockchain.
Based on the basic understanding of the dark pool above, there are at least some advantages of trading crypto in the dark pool, which we will describe below:
1. Market Sentiment Remains Stable
The trading of whales is carried out secretly, so market sentiment will remain stable before the transaction is executed.
2. Price Fixes.
The price agreement is determined based on the average of the bid and ask prices. So traders can acquire crypto at a higher or lower price than the market rate.
3. No Slippage
In Dark pool, transactions are carried out in block trading so that there is no difference between the price at the time of the transaction and the price at the time of execution.
4. Secure User Privacy Data.
Anonymous transactions, users do not need to display personal data, let alone KYC, according to the original purpose of Bitcoin.
