This new week of the cryptoacademy we can see how new topics have emerged, such as the class of professor @yousafharoonkhan, which I found very instructive and interesting, we will talk about the terms of limit order, market order, support and resistance, and especially of the order books, and how to use them.

These terms are very important that we know them, since if we plan to use the different exchanges that there are, we have to take into account certain strategies, so as not to lose so much in the investments we make.

• What is meant by order book and how is the crypto order book different from our local market?

We must know that each cryptocurrency exchange, whether centralized or decentralized, has its own order book for each cryptographic currency, in which we can see in detail the purchase and sale orders of each pair of crypto assets, which means each pair ? Well an example of this is, Steem / BTC, BTC / Dogecoin etc. But we must also know that not all currencies have parity with all, it is very important that we know this.

It could be said that it is like an electronic record that is updated in a certain period of time, where we will find information about purchase and sale orders of the currency that we want, it gives us very important information, since we can know what demand that currency has. , if it has more volume of purchase or sale, or in any case, if it is convenient for us to buy or sell said cryptoactive at the time we want.

Of course we must know that the different orders, whether they are buy or sell, as they appear, can disappear, since we have the power to cancel the purchase or sale of the asset, and even in some cases the users who are behind can be seen of said operation, but there are also users who prefer to keep it anonymous.

That is why there are also order books in the conventional financial market that we are used to seeing, only in a very different way, since in daily life there are also companies that use this registry, either to keep a regulated control of the purchase and sale orders of said merchandise, since not all the market buys or sells at the same price.

We are going to give a clear example of this. That is, I have a clothing merchandise company, and I daily check the order book to find out which were the purchase and sale orders of said merchandise that were most relevant in the market, here we can see the price of purchase orders and sale of each of the companies that sell or buy the merchandise at different prices, since each market sells its products at the price it wants.

That is why in the order book we can see this type of operations, now, we can notice the difference between the cryptocurrency order book and the conventional one, and there are notoriously certain similarities, but they also differ very well, for example:

• In a conventional order book we do not choose the parity of crypto assets that said currency has, to know the purchase or sale orders that it has in the market. In the case of crypto assets, if this happens, we can search your order book for the parity of said currency (Steem / BTC) to find out what is its greatest relevance.

• Most conventional order books are not done electronically, on the other hand crypto assets are usually faster and more transparent when searching for said currency.

• In conventional order books, we can see that there is only one type of currency, which is the local currency, and in crypto assets order books, we can see how there is a great variety of currencies.

• We can see how crypto assets order books are visible to any buyer or seller who wants to see them, however in conventional order books, the same is not the case, it is not visible to everyone.

• In the crypto assets order books, we can notice the great variety of prices that the different currencies have, and in the conventional order books the same does not happen, since there is only one currency, and if its value varies, it depends of many factors of that country.

For this and other reasons that I will talk about later, we can notice the different differences that both order books have, but that in the end they have the same function, which is to see the buy and sell orders in the market.

• Explain how to find the order book in any exchange through a screenshot.

It is very easy to find the order book in an exchange, in this case I used BINANCE, since I have been using it for a while and it is more familiar to me. The first thing we have to do is enter the main page of the exchange:

As we can see in the lower left corner, several ITEMs appear, in which we will click where it says "Markets"

And a search engine will automatically appear, where we place the currency we want, along with the parity of our preference.

In this case, I entered "DOGECOIN" and chose the Dogecoin / USTD parity, I clicked there and it automatically led me to the following:

In the lower left corner, we can locate where it says "book", we will click there and the history of purchase and sale orders for this currency will appear. We can see that the red is the sell orders, and the green the buy orders.

It should be noted that this list is updated at every moment, at the time I made the capture, there was a greater dominance of sell orders, as you can see in the graph. However, after a few seconds it changed, and buying was more predominant, we know that we are in a very volatile market, so dominance can change at any time.

• Pairs:

The pairs in cryptocurrencies, is nothing more than the exchange that occurs at the time of exchanging a cryptocurrency in an exchange, as I said before to search the order book register, you had to look for a cryptocurrency and look for a parity, As I did in the example above, they could see the amount of parity that there was to buy or sell with the Dogecoin, however I chose the USTD, which is fiat currency, however we can choose the parity that we are looking for.

Not all currencies are on par with all of them, so we must search very well before buying or selling. For example, if I have Steem in my Binance account and I want to buy Dogecoin with them, there is no Steem / Dogecoin parity, otherwise we would have to transfer our Steem / BTC, and from BTC to Dogecoin. Which would be BTC / Dogecoin.

It is a simple example of it.

• Support and Resistance:

The support and resistance technique is a useful way to operate in the crypto-asset market, it brings us benefits that we can better analyze the market in order to have a better position when we go to sell or buy our crypto-assets, in order to obtain better profits.

The support is nothing more than when we are in a downtrend and some crypto asset makes this stop, so that its price can start to rise, this also influences when there are more open buy orders in the market of said currency, in you see selling, which also causes its price to skyrocket in an uptrend.

The support in the cryptocurrency market is widely used by those investors who take advantage of this fall in the currency, in order to invest in it, because they will know that its support will rise, guaranteeing benefits, however this technique has to be very well studied before perform the.

On the other hand, resistance is the opposite of the previous one, since it is about when said currency is in an upward trend and for whatever reason the currency falls immediately, for an example of this, it is the case of Bitcoin this month fell considerably after being found at its maximum price, why did this happen? Because it could be noticed that there were more sell orders in the currency than buy orders, which caused its price to decrease by half.

Support and resistance help us to predict when and where to operate in the market, although it is true that this market is very volatile and unpredictable, so this technique helps us to decipher when it is better to invest, or on the contrary to sell.

• Limit order:

The limit order is a strategy that not everyone knows, but that is very important to operate in the world of cryptocurrencies, this technique helps us to place a maximum or minimum in any value of the price of a currency, which is more favorable and that benefit us than the one that is currently.

We place our limit order so that when the currency reaches the stipulated price that we want, either the maximum or the minimum, the operation is executed.

However, we must take into account many factors before placing a limit order in our operations, in many cases it can benefit us and in others not, since the market for crypto assets is usually too volatile and in some cases the value may not arrive. that we want in said currency.

• Market order:

A market order is simply to buy or sell at the price that the market is stipulated at that moment, which we will be paying the commissions or fees that are charged at that moment, only that this type of order is executed faster.

When placing a market order, there will be no limit on the price that we want to buy or sell, as in the case of the limit order that we place the exact price at which we want to buy or sell said cryptoactive. These types of orders are also used for those investing users who want to buy or sell quickly due to market volatility.

• Explain the important future of the order book with the help of a screenshot. In the meantime, a screenshot of the verified profile of your Exchange account should appear (the answer must be written in your own words)

We have talked a little about the order book of conventional finance that we are used to seeing and crypto assets, that is why I want to mention the importance and the future that this order book has in the cryptocurrency market.

Here I share the profile of my verified exchange, thanks to the verification they allow us to carry out and operate with transactions that have more money, in addition to guaranteeing better security in our exchange of our cryptographic portfolio.

The order book book provides us with useful and excellent information to guide and instruct us on the volume of the price that said currency has at any time, thanks to this, we can see in detail each buy and sell order that is generated at each second in the exchange that we are using, there we can see how much purchase and demand there is in the market for said currency, in order to have a clear and concise idea of ​​what to do at those times, if we buy or sell, whatever it is. more feasible.

Centralized and decentralized exchanges provide us with this type of information, which makes it more transparent and useful for each of the users who use it, since it provides us with data on the movement that said currency is having in the market, as well. allows us to analyze how much dominance certain crypto assets are having, in order to determine certain aspects and be able to make a possible investment.

I consider that the order book of each cryptographic portfolio is very important for each of the users who every day join this cryptocurrency market, it allows us to analyze and observe the market prices very well, and also helps us to avoid future loss of our assets. We can determine certain techniques that make us improve a possible investment, thanks to the support and resistance they allow us to carefully analyze the market to know the flow of volume and liquidity that a certain currency has.

Thanks to the vision and transparency of the order book, it allows us to visualize in a clearer way, the parity of each currency that we want to search, as I mentioned earlier, not all currencies have the same parity, but it is an advantage that facilitates us time to look for a certain currency along with its parity in the market.

Here I show you the order book for another currency, in this case it was STEEM / BTC, which we can see and analyze has a greater amount of demand (green color) and a lesser amount of supply (red color). This means that at this precise moment there are more people buying STEEM / BTC than selling them, which helps a little in that the price of said currency rises a little, however this can change every second and every moment, since the volatility of the The crypto asset market can change at any moment.

The future of the order book brings many benefits and advantages to all investors and users in the world who handle this type of operations, it helps us maintain greater control of a certain crypto asset, which we can see in a very transparent way and simple, since it gives us the opportunity to operate in a more conscious and technical way.

How to place buy and sell orders in Stop-Limit and OCO operations? explain via screenshots with verified exchange account

Once we are on the main page of Binance, we go to the "Market" section, in which a search engine will appear to place the currency we want along with its parity, in this case I used Dogecoin / BTC.

We select the currency, and the following will appear:

To put a Stop-limit on a sell order, the first thing we have to do is select where it says "limit", I indicated it with a blue arrow in my screenshot.

The following options disappear:
• Limit
• Market
• Stop-limit
• OCO

We are going to click on where it says Stop-limit

Once here, we can see how we get three boxes, which we are going to fill with the stop-limit order that we want to put.

• In the first box we have our initial price, that is, our stop price, which started at 1.46 DOGECOIN / USTD

• In the second box we put our limit price, for example 1.44 DOGECOIN / USDT

• In the third box we put the quantity we want to buy.

Our Stop-limit order is executed, when our stop order reaches our limit order, causing the order to be executed automatically at the price we stipulate, however we must know that in several cases our order does not reach our stipulated price.

Sell stop-limit order

To sell, we carry out the same procedure, we go to the main page of Binance, select "market", we place in the search engine our currency along with its parity, and we select where it says "Sell"

• In the case of selling, in the first box we will place our maximum price at which we want to sell our currency, in this case I placed 1.50

• In the second box, we will place the amount of the lowest value that we believe that said currency could fall, which will slow down its fall in the price that we have stipulated. (1.46)

It works the same way as the purchase one, but in reverse.

How to buy and sell with an OCO order

We must first know that an OCO order is the combination of two executed orders, only that when applying an order of this type, it causes one to cancel the other. That is, if a limit order is executed first, the stop order is canceled, and it works the other way around.

In many cases, when placing this type of order, it is beneficial to us, however each investor must take into account which order is best for him.

To make this type of order, we do the same procedure as the previous ones, only this time we will select "OCO".

As you can see, I selected my sell price at 1.50, started my OCO order with a limit price of 1.40, and my stop price at 1.35.

That is, if I reach my limit order price first, my other order will automatically be canceled, and the reverse is true.

To sell with an OCO order, the same procedure is carried out:

In my sell price to sell I placed 1.60, to start executing my limit order price I placed 1.50, and my stop price was 1.40

A simple example would be, if the prices touch my stop price, the automatic order would be triggered and my other order would be canceled. The same would happen if it were the other way around.

How does the order book in trading help you make a profit and protect yourself from losses? Share the technical point of view, which helps to explore the answer.

We have been able to see how the order book helps the conventional financial market and that of crypto assets, however I want to specify certain advantages that this option allows us in the cryptocurrency market that most of the users currently use.

The order book for being so transparent and open, allows us to have a better vision and perspective when carrying out an operation in the market, thanks to the buy and sell orders we can see, the influence that a certain currency has in the market, so that we can make an investment without so many risks.

How does the order book serve us in commerce? Do we avoid losses? , from my point of view at the time of performing this task I can say that yes, it avoids certain risks and future losses, this is due to the techniques of: Stop-limit, OCO, Support and resistance, Stop loss, etc. That allows us to have better control when market prices get out of control, since we already know that we are right now in a totally volatile market.

This order book helps us users to have a better organization to operate in the cryptocurrency market, it helps us to analyze the market in a more technical and commercial way, with the help of buy and sell orders that we can see, it helps us to predict or determine the future price of a certain cryptocurrency, of course together with the other techniques that I mentioned above in order to avoid future losses and possible gains.

Conclusion

Currently we can see how the order book helps us to operate in the cryptocurrency market in a more controlled way and to analyze it from a more technical point of view, to understand each of the uses and benefits that it offers us, it is important and fundamental, in order to see better benefits in our income.

We have been able to see and discuss how the techniques of Stop-limit, Support and resistance, and OCO can be applied in the crypto-asset market to obtain better benefits, and in each exchange, whether centralized or decentralized, we can find it.

In this class we also talk about how to find the order book in an exchange (Binance) and what importance and use they have in trading. It is important to clarify that when making a future investment, or exchanging in the crypto-asset market, we take into account the techniques explained above, and do our research very well before doing so.

Thanks to the task of professor @yousafharoonkhan for the explanation this week, I was able to understand this topic much better and clarify certain doubts.

(all images and screenshots are my property)