What Are the Key Risks Associated with Executing Large Block Trades on Public Crypto Exchanges?

The main risks are market impact and information leakage. Executing a large order on an open order book can quickly move the price against the trader, known as slippage.

Information leakage, where other traders front-run the block order, is also a major concern. Furthermore, public exchanges may have insufficient depth to absorb the trade, and regulatory uncertainty or counterparty risk on less-regulated venues adds to the complexity.