What is the definition of dark pool in the context of cryptocurrency?

3 answers

• liran haimJan 13, 2024 · 2 years ago
  A dark pool in the context of cryptocurrency refers to a private and anonymous trading venue where large institutional investors can trade large volumes of cryptocurrencies without impacting the market. It operates outside of the public order book and provides participants with increased privacy and reduced market impact. Dark pools are typically used by institutional investors who want to execute large trades without revealing their intentions to the broader market. While dark pools offer advantages such as reduced slippage and increased privacy, they also face criticism for potentially enabling market manipulation and lack of transparency.
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• Roburt KhouzMay 20, 2022 · 4 years ago
  Sure! So, a dark pool in the context of cryptocurrency is like a secret club for big players in the market. It's a private trading venue where large institutional investors can buy or sell large amounts of cryptocurrencies without causing significant price movements. Think of it as a hidden pool where only the invited guests can swim. The advantage of dark pools is that they allow these investors to execute large trades without tipping off the market and causing prices to change. However, some people argue that dark pools can enable market manipulation and lack transparency, as the trades are not visible to the public.
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• Name NameJun 28, 2025 · 7 months ago
  Dark pools in the context of cryptocurrency are private trading venues where institutional investors can trade large volumes of cryptocurrencies without impacting the market. These pools operate outside of the public order book, which means that the trades are not visible to other market participants. The advantage of dark pools is that they provide increased privacy and reduced market impact for large trades. However, they also face criticism for potentially enabling market manipulation and lack of transparency. It's important to note that not all cryptocurrency exchanges offer dark pool services. Some well-known exchanges, like BYDFi, provide dark pool functionality to their institutional clients.
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