Why crypto dark pool is good.

[Min Eduok]

rypto Dark Pool Advantages​

Do we have advantages of Crypto Dark Pool?


A dark pool is a private financial trading forum where buyers and sellers can trade securities anonymously. In the context of cryptocurrency, a dark pool would allow traders to place large orders to buy or sell cryptocurrencies without revealing the details of the order to the broader market.
Some potential advantages of a crypto dark pool include:

1. Anonymity: By keeping orders anonymous, traders may be able to avoid alerting the market to large trades, which could affect the price of the asset.
2. Reduced market impact: If a large order is placed on a public exchange, it may have a significant impact on the price of the asset. In a dark pool, the order is only visible to a select group of participants, which can help to mitigate the market impact.
3. Reduced price volatility: By allowing large orders to be executed with less market impact, dark pools can help to reduce volatility in the price of an asset.
4. Access to liquidity: Dark pools can provide access to liquidity for traders looking to execute large trades.
5. Lower trading fees: Dark pools may offer lower trading fees than public exchanges, as the costs of operating a dark pool are typically lower.

It's worth noting that regulatory environment of crypto is still not mature, so It's possible that dark pools may not be legal or may be subject to regulations in some jurisdictions. Additionally, Dark pools pose potential liquidity risk when the available liquidity can be reduced in extreme market conditions. It also possible that if many investors use dark pools to trade, it could lead to a lack of transparency in the market and could make it more difficult for regulators to monitor for illegal activity.

 

[Suba]

Dark pool is a special exchange for big investors like whales both individuals and companies, not for retail traders like us, so we can only trade on regular exchanges like Binance, Coinbase, Kucoin, Kraken, Bitfinex etc.

The anonymous way of working of dark pools is often used as an excuse for legality, even though in some countries dark pools are legal.
Dark pools are often considered to have no regulatory benchmarks, the absence of an order book does not guarantee the best price.

Currently trading transactions in the dark pool are not completely closed, there is some information that can be released to the public. Software or bots are also available that can detect to look for information on ongoing crypto transaction orders other than on the regular crypto market.