Crypto Dark Pool Trading: What Is It & Should You Try It?
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The term "dark pool" may conjure up images of a sinister Hollywood movie for you, but in reality, it's a private trading platform used to keep large trades away from the public eye. Here, you’ll learn more about crypto dark pools, who can trade in them, and whether they’re worth the hype.
What Is Crypto Dark Pool Trading?
Crypto dark pool trading takes place on a private crypto exchange, and is mainly used to place very large orders.
Dark pools are not uncommon. They were created in the 1980s when institutional investors needed a place to trade large quantities of financial assets without revealing their identities.
Financial authorities didn’t object to dark pools because they facilitated the trading of exceedingly large orders without creating a panic. When orders are placed in a dark pool, it also helps stem massive price volatility that may result from a large order in the book of a public exchange.