Steemit Crypto Academy Contest Season 11 Week 3 - "Dark Pools In Cryptocurrencies"
Hello Everyone, How are you? I hope all of traders and marketing advisers will be fine and all will be happy by the grace of Allah Almighty. I am also fine and also happy to be a part of this engagement challenge season 11. Now i comes to participate in the engagement challenge of steem crypto academy where i am discussing about the dark pools in cryptocurrencies that is a really brilliant topic for us.
Discuss in your own words what Dark Pools are in cryptocurrency. And explain how it works?
Dark pools in cryptocurrencies are like a private room for secret trades where all traders experts doing trading with each other without the involvement of public exchangs. It is the the context of crypto currency that's reefers to private order books where large trades can be executed away from the public trades on different exchanges. They allows to institutional investors and high-net-worth individuals to trade significant amounts of crypto currencies without revealing their intentions to the broader market. They work with full of privacy and high security. They are provide privacy by concealing the details of orders from other market participants until the trade is executed or stop.
They worked with full privacy and they can also reduce the market risks because they large or high trades can significantly impact on crypto's prices because then supply or demand whould be increased. They dark pools refer a very low fees of trading, that is a very attractive to investors executing large trades. The most important thing and work of these dark pools is that they reduced the risks of Manipulation of crypto prices that is also one of the attractive and important thing for big crypto stakers and traders. They have a limited Transparency because they keep their order books hidden.
Do all crypto exchanges offer a dark pools? If yes, explain how does its dark pool work? What tokens are supported? Are there any fees attracted? And What are the requirements to get involved in dark pools trading on the platform?
I think No, Honestly Speaking I don't much have experience on it but according to my experience the mine answer is no because all currencies and exchanges have thier different natures. There are some of exchanges where crypto currencies offers dark pools. Because there are typically more common in traditional financial markets. Among the exchanges that do offer dark pools they working with the same abilities that i mentioned on my above paragraph.
For the chosen dark pools, show how to perform block trading on the platform. (Screenshots required).
Login or Register: First of all logn to your account on binance exchange that offers a dark pool. If you don't have an account on it, you'll need to register and complete all necessary verification steps.
Access the Dark Pool By selecting Block Trading : Navigate trade options and select block trades.
Select the Trading Pair: Next step is Choose the cryptocurrency pair you want to execute a trade for. This could be BTC/ETH, or any other supported pair on this exchange.
Review & Confirm: After choosing trading pair carefully review the trade details you've added. Ensure that everything is accurate before proceeding trade.
Submit Order: Click the "Submit" or "Place Order" button to initiate your trade.
Confirmation: Once the trade is executed, you should receive a confirmation of the trade details via email.
Explain the decentralized dark pools? State a decentralized dark pool in cryptocurrency and discuss it. How it works?
My dear friend this is a new way to Trade coins with decentralized dark pools in which we can trade in private rooms. This is a secret trading platforms on the blockchain where people can trade with thier big amounts of cryptocurrencies without the involvement of public as on other exchanges. You can find these dark pools on Ethereum Blockchain.
My dear friends you can find these pools on ethereum blockchain where you can do direct trades. You can talk directly to each other traders. They can deal with each other and buy high amount of ethereum coin.
They dark pools also keep safe and private our things. They use a special codes to keep secure our details. Only those peoples who doing trading can see this. Because in these platforms we can talk with other we can create our contracts like we agreed upon a contract is made . It is as a digital agreement that says we can trade our coins or stop.
They can also reduced the risks of Manipulation of crypto prices. And they keep secure and keep secret our trades.
Compare a centralized crypto exchange dark pools with a decentralized dark pool. What are the distinctive differences?
Here in the below table you can read comparison between centralized and decentralized dark pools.
| Centralized Dark Pools | Decentralized Dark Pools |
|---|---|
| They keep secure thier trades with normal but they have chance that someone can saw thier trades. | They Keep Secure thier trades with thier special codes and there is no chance that any 3rd person can saw our trades. |
| In Centralized Dark Pools you have need to get a permission of your onwer to invite anyone for do trades. | In Decentralized Dark pools you don't have need to get a permission from anyone to invite your friends for trades. |
| The centralized Dark Pools are controlled or monitored by exchanges. | The Decentralized Dark Pools are controlled or monitored by crypto blockchains. |
What are the advantages and disadvantages of the Dark pools in Cryptocurrency?
In the below table you can read advantages and disadvantages of dark pools in cryptocurrencies.
| Advantages | Disadvantages |
|---|---|
| They provide a high security and privacy to our trades and they keep thier trades from public. | But they have a lack of Transparency who can become a cause of market manipulation. |
| They can reduce the risks of maketes up downs and market impact. | If we compare this with regular exchanges then they have low regulatory. |
| Dark pools help us to prevent our information leakage by keeping trade details confidential until after the trades are executed. | Some dark pools might have some restrictions on who can participate in trades, partically they have limiting access for retail traders or certain types of investors. |
| Dark pools allows their traders to aggregate liquidity from various sources. | The dark pools trading might be complex for new traders due to thier new rules. |
Now my dear friend this is the end of my participation in crypto academy and i hope my information is enough for success in this contest. Now I want say thanks to all my steemians friends ans all theyeam member of this community for supporting my content.
Now I would like to invite @malikusman1, @mile16 , @suboohi , @aaliarubab , @kouba01 , @f2i5 , @irawandedy, @pelon53 and @anasuleidy for participating on this contest.
Cc, steemcurator01 | @stephenkendal
We are not too old to learn. Dark pool is somehow new to me but thanks to this contest, I was also able to explore like you. You have written well when you said that it is a place where trader with large volume of transactions trade to avoid crypto panic in the general market. It is specifically for those people and the fees are usually low compared to conventional crypto market. The advantages and disadvantages you have enumerated are in order. I wish you success
Glad to see your comment on my post. I always respect your experience. Thank you so much for this appreciation..
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Twitter Promotion,
https://twitter.com/FaranNabeel/status/1689682247283089408?t=hpDRgYjNuW5Y5SMwoieeFg&s=19
Greetings to you dear.
This is the best post on Dark pools topic. You have beautifully explained all the matters. I was unaware that binanace is giving the option of dark pool. First time I am seeing it here, but ofcourse binanace is the biggest crypto exchange. If other can give, why can't binanace.
Best wishes for the contest.
Thank you my dear friend.
Hola Faran 😊
Un tema totalmente nuevo o al menos para mi. Lo abordaste con un lenguaje sencillo que se supo apreciar bastante. Me parece increible como este tiempo de transacciones se puede hacer sin que afecte al mercado global, es una gran estrategia dependiendo de tus objetivos.
Exitos
Masha Allah Bhai 😀
Ap ki post parh k bhot acha lga Kyu k ap ny is topic ko bhot achy sy present kia ha hmare sath. Aam tor py dark pools ka ziada faida bary investors ko hota ha Kyu k un ki transactions ki details ko baqi log ni dekh skty. App ki iss post ki jtni tareef ki jye kam ha.
Good luck 🤞
Brother you tried to participate very well in the engagement challenge of season 11 and week 3 as well as you explain all the questions in a good way and most important thing is that you don't provide any wrong information because it's much good to provide a little information then to providing a wrong information to others
I didn't see anything by which I feel that you don't have information about it but one thing is that in some questions you should go much deeper but over all your presentation you are writing style and everything that you explain is good and I really appreciate you and pray for you