Cryptography twitter It is full of’anon’ users. One set uses a veiled ID for fraudulent purposes, and the other feels more secure in expressing their opinions without revealing who they are. .. Just like that, some people prefer to leave it unnamed while executing a transaction. At that time, pre-established frameworks such as Bitcoin Dark Pool will emerge.
Dark, Darker, Darkest: All shades of Bitcoin Anonpool
Dark pool In essence, it is a private exchange used to trade assets that are inaccessible to investors. Most market participants rely on exchanges to trade crypto. However, wealthy investors who usually buy large quantities of tokens that do not want to affect the price of Bitcoin choose the dark pool option.
Order books are usually published on mainstream exchanges. In such cases, openly making significant transactions can, among other things, cause extreme excitement and panic. Therefore, Darkpool is a personal exchange that helps institutional investors and other large investors to buy and sell Bitcoin and other cryptos without revealing them.
Dark itself has no tangents associated with the dark web or illegal black markets. They simply replace the means of facilitating hidden bids / offers to protect prices from avoidable volatility.
Therefore, BTC in a dark pool is considered part of the illiquid supply. As highlighted in a recent article, whenever Bitcoin is in the cold wallet away from the exchange, the supply will be illiquid. This represents a long-term HOD Ling that is not available for sale or transaction. However, illiquid supply is part of cyclical supply.
According to the thumb rule, the more illiquid supply, the better the result, as it indicates that the macro HOD Ling trend is in place. However, the actual numbers will be diluted because the illiquid supply includes dark pool BTC. Therefore, you should always use a small amount of salt to read the above metric.
Is it set to increase the dependency?
Dark pool transactions remain largely untracked, and the exact percentage of supplies locked there remains unknown. But people in space feel that dark pools will be used more.Opinions about TXMC, the same pseudonym host for Alpha Beta Soup Said,
“Unfortunately, we can’t know with certainty. We can only guess. All we know is that these businesses exist and only grow in number.”
Is it worth it to private investors?
In most cases no. It is usually very unlikely that a retailer will make a huge deal that drives the market. Therefore, the need to remain anonymous is ultimately wiped out. It should also be noted that dark pool prices usually reflect “advanced” prices. Also, due to the large lot size, unexpected swings continue to occur. The same usually has the potential to bald retailers if they are in the opposite direction. Therefore, it is best to stay away from these pools.