Assalamualaikum. Hello All Steemians !!!

Today I'm going to make my Steemit Crypto Academy Homework task by professor @yousafharoonkhan that talking about Exchange order book and its Use and How to place different orders?. Very interesting lessons. Actually I have very little knowledge about this, but I will try to discuss it to improve my writing skills. On this occasion I will try to discuss it following 5 points.

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1. What is meant by order book and how crypto order book differs from our local market. explain with examples

In a simple and based on real life, order book is a record or history of buying and selling that has occurred within a certain time after the transaction process is carried out. The transaction process runs according to the expectation where the purchase or sale price is given and agreed by the parties involved in the market.

Every buyer has the right to submit the desired price and so is the seller who is free to give the appropriate price. All transaction processing occurs at different prices and times. For example, buying school books using fiat currency. Every student wants a cheap and decent price according to his own price. But each different seller has its own price which makes them profit. This is what makes order book very varied with the difference in price and time of each process.

In contrast to the cryptocurrency order book which has trading pairs in carrying out every transaction process. There is a data storage of buying and selling pairs in the system which makes trading a little different from the usual local market. Every time you want to make a transaction, you will be faced with a choice of cryptocurrency trading pairs such as Steem/BTC that can speed up and make it easier for users.

In this case, cryptocurrency order book can be said to be a record or history of buying and selling between cryptocurrency pairs that occur in the system at different prices and times. Cryptocurrency order book also provides information and data about transaction processes that occur within a certain period of time. All transaction processes that occur for each particular cryptocurrency pair are summarized here and make it a record of the total process.

The main points of difference :

• Presence and absence of trading pairs
• High and low price volatility
• Wide and narrow negotiations
• Advantages and disadvantages in automatic price charging
• Can and cannot predict the price

2. Explain how to find order book in any exchange through screenshot and also describe every step with text and also explain the words that are given below

On this occasion I will use Binance to show you order book cryptocurrency and explain some important points in the world of cryptocurrency exchanges.

• Here I use the Binance app via smartphone. Open Binance application.
• At the bottom right side of the Home page, there is an option "Markets" and select it.
• The screen below will appear. There is a "Spot" option. Next, fill and type in the pair of coins you want.

• Here I choose STEEM coins because steemit is very closely related to STEEM coins because it is a gift or reward given.

• Choose STEEM / BTC as a cryptocurrency pair.
  

• The screen below will appear. There is information and data about STEEM / BTC. Below the graph is an "Order Book" which shows the different buying and selling prices for a certain period of time. The list and records will be updated automatically as long as the transaction process continues.
  

Pairs

The pairs referred to here are cryptocurrency pairs that are stored and running on the exchange system. This pair is two crypto assets that can be traded with each other as per wants and needs. For example BTC / USDT as shown below. This is the most familiar pair and is often used by investors and traders in trading.

This has made it easier and faster for each user transaction process. Where the exchange can be made between crypto to fiat currency (BTC / USDT) or crypto to crypto (STEEM / BTC).

Support and Resistance

Support is the time and situation that shows the cryptocurrency price is trending down and will stop. This is influenced by high market demand by buyers and also the availability of fewer coins. This is a good time to enter a buy list. Profit is made by many buyers by buying crypto at the lowest price. The combined lows of the crypto price over a period of time will give an indication of a precise support line. This causes the falling crypto price to stop and start showing an uptrend. The price of crypto is predicted to increase if there is a 20% increase in price within 24 hours.

Resistance is the time and situation that shows the cryptocurrency price is trending up and will stop. This is influenced by high trading volume by sellers and increasing availability of coins in the market. This is a good time to enter a sell list. Profit is made by many sellers by selling crypto at the highest price. The combined highs of the crypto price over a period of time will give an indication of a precise resistance line. This causes the rising crypto price to stop and start showing a downtrend. The price of crypto is predicted to fall if there is a 20% decrease in price within 24 hours.

The image above shows the BTC / USDT chart in 1 day. There are increases and decreases in prices. Where BTC price is in an uptrend and starts to stop which shows the resistance line. The resistance line is at the top point at $59,500.00. Furthermore, the price of BTC has decreased significantly at its lowest point with prices above >$33,000.00. Price volatility can occur for a short period of time.

Limit Order

Limit Order are order placed by buyers and sellers of cryptocurrency at a price above or below the current price. In the sense that the order is not immediately executed at a price that is in accordance with the current market but rather provides a limit order to get profit. The transaction process is carried out only by setting the price and will be processed once the price or level is reached. For example, 1 BTC price $40,000.00. I want to buy 1 BTC when the BTC price drops to $38,000.00 by setting my own price limit. Vice versa in terms of selling 1 BTC when the price of BTC rises to $42,000.00.

Market Order

Market Order is an order placed by buyers and sellers of cryptocurrency at a price that is appropriate and following the current market. In the sense that orders are executed in a very fast time. It is an instant transaction process and requires no waiting time to buy or sell crypto. The transaction process occurs when the appropriate crypto set price is entered into the order book and the other party is ready to transact. For example, 1 BTC price $40,000.00. I will buy 1 BTC at this price according to the market order.

3. Explain the important future of order book with the help of screenshot. In the meantime, a screenshot of your exchange account verified profile should appear

I will provide a screenshot of my verified account on Binance like the professor's instructions.

Order Book

Trading and exchange process in the cryptocurrency world uses the order book as one of the main parts in simplifying and completing the transaction process. Order book plays an important role in helping traders provide options to take the next step. Information and data in the form of prices, charts, offers, market capitalization, and volume are very helpful in analyzing the market.

The image above shows the order book of the STEEM / BTC crypto exchange pair. On the left and green indicates that it is a "Buy Order" and on the right and in red indicates that it is a "Sell Order". The number of transaction processes that continue every time explains that there is trade between sellers and buyers at different prices and times. Order book is a record and history that records all transaction processes that occur in the system bring benefits to users in the buying and selling process between crypto and crypto or crypto and fiat currency.

Buy Order

Buy order is the most important part of cryptocurrency trading. The purpose is to exchange some crypto that is already owned to get some other crypto. In this case the selection of crypto trading pairs can be found on the system. For example, here I will buy BTT coins by exchanging them with TRX coins that I already have in my Binance wallet.

1. Choose BTT/TRX price according to the price on the current crypto market. This price will be included in BTT purchase price list.
2. Choose a 100% TRX exchange percentage. 15.99886 TRX will be included in BTT purchase list.
3. The number of BTT that I will get is 299.1.
4. Select "Buy BTT" to complete the transaction process.

Sell Order

Sell order is the most important part of cryptocurrency trading. This is a continuation of the buying process.If there is a buying process, there must be a selling process. It is a game of getting profit in the short and long term. In this case the selection of crypto trading pairs can be found on the system. For example, here I will sell STEEM coins that I already have in my Binance wallet by exchanging them to get BTC.

1. Choose STEEM/BTC price according to the price on the current crypto market. This price will be included in STEEM sales price list.
2. Choose a 100% STEEM exchange percentage. 4 STEEM will be included in STEEM sales list.
3. The number of BTC that I will get is 0.00006660.
4. Select "Sell STEEM" to complete the transaction process.

4. How to place Buy and Sell orders in Stop-limit trade and OCO? explain through screenshots with verified exchange account

Stop-limit

Stop-limit is a type of order that is registered in the transaction process by setting stop price and limit before doing it. It is a combination of stop loss and and limit orders. The purpose of placing this type of order is to lock in profits and eliminate losses. For the success of this order requires reading and understanding of the crypto you want to trade. Analysis of charts and support / resistance lines is needed before determining the price value you want to set.

Buy Order

• Here I use the Binance app via smartphone. Open Binance application.
• At the bottom right side of the Home page, there is an option "Markets" and select it.
• There is a "Spot" option. Next, fill and type in the pair of coins you want.
• Here I choose BTT/TRX as an example "Buy Order"
• Choose "Stop Limit" from the 4 options below.

1. See current BTT/TRX prices $0.05344 according to market prices.
2. Set the Stop TRX value. Here I set $0.055 above the current market price.
3. Set the Limit TRX value. Here I set $0.050 below the current market price.
4. Choose a 100% TRX exchange percentage. 16.00000 TRX will be included in BTT purchase list.
5. The number of BTT that I will get is 320.0.
6. Select "Buy BTT" to complete the transaction process.

Sell Order

Some of the initial steps are the same as the example above for a "Buy Order". Here I choose STEEM/BTC as an example "Sell Order"

1. See current STEEM/BTC prices $0.00001651 according to market prices.
2. Set the Stop BTC value. Here I set $0.0000170 above the current market price.
3. Set the Limit BTC value. Here I set $0.0000160 below the current market price.
4. Choose a 100% STEEM exchange percentage. 4 STEEM will be included in BTC purchase list.
5. The number of BTC that I will get is 0.00006400.
6. Select "Sell STEEM" to complete the transaction process.

OCO

OCO is an advanced option after stop-limit which shows a combination of orders collected and set in one transaction process. But here there is a difference where if one order is executed, the other orders that have been joined and set will be automatically canceled. For example, I set crypto price limit order and stop limit, if the limit order is executed then the stop limit will be canceled automatically and vice versa. OCO orders are used by traders when the market is in a very high level of volatility so the risk of loss will be reduced and can also bring profit.

Buy Order

• Here I use the Binance app via smartphone. Open Binance application.
• At the bottom right side of the Home page, there is an option "Markets" and select it.
• There is a "Spot" option. Next, fill and type in the pair of coins you want.
• Here I choose BTT/TRX as an example "Buy Order"
• Choose "OCO" from the 4 options below.

1. See current BTT/TRX prices $0.05302 according to market prices.
2. Set the Stop TRX value. Here I set $0.055 above the current market price.
3. Set the Limit TRX value. Here I set $0.05291 below the current market price.
4. Set the Limit Price TRX. Here I set $0.060 above the Stop BTC value.
5. Choose a 100% TRX exchange percentage. 15.99998 TRX will be included in BTT purchase list.
6. The number of BTT that I will get is 302.4.
7. Select "Buy BTT" to complete the transaction process.

Sell Order

Some of the initial steps are the same as the example above for a "Buy Order". Here I choose STEEM/BTC as an example "Sell Order"

1. See current STEEM/BTC prices $0.00001653 according to market prices.
2. Set the Stop BTC value. Here I set $0.0000170 above the current market price.
3. Set the Limit BTC value. Here I set $0.00001649 below the current market price.
4. Set the Limit Price TRX. Here I set $0.0000180 above the Stop BTC value.
5. Choose a 100% STEEM exchange percentage. 4 STEEM will be included in BTC purchase list.
6. The number of BTC that I will get is 0.00007200.
7. Select "Sell STEEM" to complete the transaction process.

5. How order book help in trading to gain profit and protect from loss?share technical view point, that help to explore the answer

Trading in the cryptocurrency world requires a strategy to gain profit and eliminate losses. This is supported by the order book, which is an important part of the transaction process. Transactions between crypto pairs that continue every time at different prices make the order book the main concern of traders in the analysis and reading of market trends. The Market, Limit, Stop Limit, and OCO trading features are the most appropriate solutions.

Market Order is a feature that helps traders in the trading process instantly and follows market prices. It aims to give traders profit if the crypto price has risen and reaches a high level. This is a real time transaction when trader registers a buy or sell order the transaction will be executed immediately.

Limit Order is a feature that helps traders in the trading process without having to monitor every time crypto price changes. By setting a limit order with a high price that generates profit, the transaction process will run automatically. It aims to give traders profit if the crypto price has reached the limit order set. This is an automatic transaction requiring a waiting time when a trader registers a buy or sell order.

Stop Limit is a feature that helps traders in the trading process without having to monitor every time crypto price changes. This is done by setting a stop limit order with a high and low price compared to the market price. This aims to provide profit if the crypto price rises or reaches the set limit order and minimizes losses if the price drops or reaches the set stop order.

OCO is a feature that helps traders in the trading process by taking advantage of a combination of order types and canceling other orders that were not executed. This is the complete package. This type of order is devoted when the volatility of crypto prices is high. To get profit and minimize losses, traders will rely on OCO as a solution.

All things that are included in order book information and data such as prices, charts, market cap, volume, and offers also play an important role. All of these can help traders analyze market trends and demands. All transaction processes that occur with changing times and prices recorded in the order book can be used as a reference in determining decisions to bring profit and eliminate losses.

Conclusion

The presence of order book in the trading transaction process in the cryptocurrency world is very influential. All the features and functions that order book has can help traders in many ways. Every trader analyzes and understands everything that is involved with crypto trading such as prices, charts, market cap, volume, bid, timing, volatility etc. This will be well realized by relying on order book before the transaction process so that it can generate profits and eliminate losses.

Note : All the images in this post are from screenshots on my Binance account on my phone.

Thank you for reading my blog, hope it will be useful for all of you.

CC :
@yousafharoonkhan
@steemcurator02