What Is an Iceberg Order and Why Does It Matter in the Crypto Market?

2 min readJul 11, 2022
What Is an Iceberg Order and Why Does It Matter in the Crypto Market?

The crypto market has witnessed several defining moments since its arrival, and despite all the lows that have engulfed the crypto world, it has always come back even stronger. And it’s not a secret that every crypto-enthusiast has experienced “the dip” at one point, when things go south in the crypto market, and they still weather the storm of the volatile market.

Incidentally, digital currencies have not fared well over the past few months, thanks to the persisting bearish market. Notably, Terra Luna has completely collapsed, while the majority of altcoins and popular crypto-assets like Bitcoin (BTC) and Ethereum (ETH) are trading at their lowest prices in recent periods.

At best, this worrisome moment in the cryptosphere has dampened the hopes of old-timers as well as that of potential investors, irrespective of the smooth run that most coins experienced last year.

That said, it is not a new discovery that a lot of artificially-engineered activities are capable of disrupting the crypto market. For instance, the Elon Musks of the world are known for influencing the rise and fall of various digital currencies due to their affluence and reputation for building wealth.

Likewise, crypto whales or individuals with wallet addresses holding a significant amount of cryptocurrency are not left out. Typically, by buying and selling huge amounts of cryptocurrencies at once, these individuals often cause significant disruptions in the crypto market.

While these manipulative approaches to influencing the crypto market are not sustainable, to say the least, it is important to establish proactive measures to curb what may turn out to be the downfall of the emerging crypto market. One way to put a semblance of order to a market known for its volatility and instability is the implementation of an Iceberg Order.

What does that mean? In this article, we’ll break down what an iceberg order means in simple terms, how it can function as a financial instrument that is capable of solving the aforementioned problems, and how best they can positively affect the crypto market. Let’s dive in!

Introduction to Iceberg Order

To begin with, imagine a scenario where a crypto whale intends to purchase 10,000,000 units of a cryptocurrency at a hefty price of $30 per unit and an average daily trade volume of 800,000 units. You would agree that such an order is capable of disrupting the market trend, not to mention invoking panic among traders.

We are also quite familiar with the concept of “pump and dump” in the crypto world, where a big player tries to influence the price of cryptocurrency for his gain by dealing with a large-volume order. Such manipulations of the demand and supply curve have led to so many small-scale traders getting stung in the process.