Steemit Crypto Academy Contest / S11W3 - Dark Pools In Crypto

How are you? Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah....

Today I am very happy that I am going to participate and sharing my knowledge and experience about this topic of engagement challenge and hopefully I would participate in my best way.

Private or secret trading platform at which there are large investors mostly trade cryptocurrency in large volume are called dark pools in cryptocurrency. In dark pools basically large institutional investors are involved for buying and selling their assets but they don't reveal their trading among public. We can say in lame language that in Crypto world there is a secret club for large Crypto investors called dark pool.

Dark pool work in several ways as I am describing below:

• Dark pools working is that they keep details of all trading hidden from public and dark pools have a separate system of matching buyers and sellers directly within its network.

• There is also a use of algorithms in dark pools for matching of orders and also dark pool gives ensurity of anonymity. Dark pool trades execute of public order books so in this way they don't affect market as other regular trades effect market.

• Dark pools are private and they are not regulated with the same strictness as public exchanges that's why it makes them riskier to some extent because they have little transparency.

No it's not necessary that all Crypto exchanges offer dark pools but there are some crypto exchanges that may offer dark pools. If there is a cryptocurrency that offers dark pool then it means that cryptocurrency offers a particular section for crypto investors who want to trade at large volume.

When we talk about tokens that are supported in dark pool then we cannot generally tell about it because it depends upon the specific exchange as there are some exchanges that offer wide range of tokens while there are some of them that have limited selection. There is a need that's why to check with the exchange if you want to check tokens that are available for trading in dark pool.

If someone wants to use the service of dark pools then definitely there are some charges and some fees to use this services and fees depends upon exchange as well as volume of trading tokens. If any investor is interested for using dark pool then there is a need to review a complete guide about fees structure before using dark pool services.

Before involving yourself in dark pool trading there is a need to make some particular requirements and these requirements or criteria can very from exchange to exchange but it's much better and a good option to reach out to the exchange of ring the dark pool to learn more specifically about requirements of that particular exchange in which you want to trade in dark pool.

For all those large investors who want to trade without impacting the market dark pool is a best tool for all of them but there could be some risks also like lack of transparency as compared to regular exchanges.

There is a need to follow all of the steps that I am describing to perform block trading on a dark pool.

1. Signing up and creating an account on a dark full platform is major and most important step.

1. There is a need to complete your verification such as KYC(Know your customer)
2. There is a need to properly deposit some of the necessary funds in your account to make or to execute transactions.
3. You should navigate the dark pool feature or dark pool section now.

1. There is a need to confirm some of the parameters like token that you want to trade and quantity of the token that you want to trade etc.
2. There is a need to submit the block trade order manually by putting the information according to the requirement.

1. You should wait for some time until dark pool network will match your trades for trading.
2. After matching your trades your account balance will update after execution.

In the last screenshot that transaction don't further proceed but once you would login on this step then transaction will proceed very soon.

Decentralized dark pools are cryptocurrencies that are basically private trading platforms but they operate without using any Central authority. Decentralized dark pool have a clear motive to provide more privacy ,security and liquidity to traders when decentralised dark pool allow execution of large trends without revealing the intentions to broader market.

Airswap is one of the example of decentralized dark pool in cryptocurrency and the blockchain at which it is built on Ethereum blockchain.

Here's how AirSwap works:

1. Traders that want to trade connect their wallets to Airswap platform.
2. After that traders create an order by specifying the token they want to trade as well as the quantity of that token and other necessary required parameters.
3. After that order is broadcasted in Airswap.
4. AirSwap's Indexer, is a network that contains independent nodes for saving or storage of trades
5. Once a party has been found then trade encountered between parties by using a peer-to-peer atomic swap.
6. Trade that executes at blockchain Ethereum also ensures the transparency and security.
7. AirSwap also requires a very small fees for execution.

There could be some of the very distinctive differences and comparison between centralised and decentralised dark pool.

1. Governance:

• Centralised dark pool are operating basically by centralised authority where as if we talk about decentralized dark pool then they are operating on blockchain technology and allow peer to peer trading and there is no Central authority in it.

2. Privacy:

• Centralised dark pool offers less privacy then decentralized dark pool because exchanges still have an access to some extent to the trader information. If we talk about the centralised dark pools then there is more privacy by the use of encryption and traders are those who maintain control over there private things.

3. Security:

• Centralised dark pools are more susceptible for hacking because there is a storage of personal information of traders at the centralised server but on the other hand if we talk about the centralised dark pool then there is more security for traders in decentralised dark pools because funds are held in users wallets that also reduce the risk of hacking in other words.

4. Liquidity:

• Centralised dark poles offer more liquidity because of a wide base of traders but liquidity is specified to some of the tokens but if we talk about decentralized dark pools then they have lower liquidity but they also offer the advantage of accessing a global pool of liquidity.

I am sharing below some of the advantages and some of the disadvantages of dark pools in cryptocurrency m

Advantages of Dark Pools in Cryptocurrency:

Disadvantages of Dark Pools in Cryptocurrency:

I want to invite here some of my friends to share their participation with us @wilmer1988 , @goodybest , @nahela , @josevas217