what is order book of cryptocurrency 📖 and how to find it

Order Book

An order book, as the name suggests, consists of a series of orders, such as sales or purchase orders. In our daily life, whenever we go to the market, we often see an order of books. We discovered that every shopkeeper and trader has a book. In this book there is a brief account of their buying and selling. It is actually called an Order Book.

The same is true in the world of cryptocurrency. Every cryptocurrency exchange has an order book that contains all the information about recent trades (buying and selling). This is called a crypto order book. The order book plays an important role in making trades and when we consider the value and status of each token or coin. An exchange order book allows you to buy and sell assets in pairs. A pair is the relationship and comparison between any two assets under investigation.

Crypto Market Local Order Contrasts With Book Market

The order book we see in our daily life is similar to the current order book in the cryptocurrency market. However, there is a difference between the two types. Now consider the differences.

• Like local market books we usually read. This is a collection of documents collectively known as an order book. On the other hand, order books on cryptocurrency exchanges are virtual and digital. It shows the latest transactions of various merchants in the system.

• The order book of the exchange is transparent and visible to all users of the exchange. This helps traders correlate cryptocurrency market value with behavior.

• The main difference between local market order book and crypto market order book is that local market order book details the buying and selling of an asset. A local market order book contains information about transactions for a particular product. On the other hand, the cryptocurrency market order book contains the latest trading information in the form of a pair. Pairing means that trading details of specific commodities are not treated separately in the cryptocurrency order book. It is thought of as a crypto pair. As we know, in cryptocurrencies, tokens and coins are exchanged for other tokens and coins. So the information of both coins or tokens will be entered in the order book.

Example:

Local Market Order Book:

An example of a local market order book is a utility store book. A utility store order book contains separate purchase and sale orders for each item. This is a good example of a local market order book.

Crypto Order Book:

For crypto order books, we look at asset pairs that trade (buy or sell). For example, if you want to exchange your STEEM tokens to USDT, you should look at this STEEM/USDT pair. If you open a trade on this pair, you will get a STEEM/USDT order book.

Minor differences between local market order books and cryptocurrency order books include

Method to find order book in exchange

As mentioned in Brief and Detailed Introduction to Exchange Order Book. Now let's discuss how to find the order book for a specific trading pair. We will explain how to identify order pairs on Binance Exchange. Let's see how to do it below.

• First, open Binance from Binance website or mobile app and login to Binance. Below you will see the Binance home page.

• Now select the Market option in the top menu as shown in the above screenshot.

• There are many markets. In the search box you need to search the name of the coin you are trading.

• Find TRX tokens as above. Then click on the Trade option next to Coin Stats.

• Here you can find the order book for the TRX/USDT pair. The above screenshot shows this pair of buy and sell orders separately.

*** Now, how to find Binance Exchange Order Book.

Here are some of the questions asked by the professor.

=> Two pairs:

From all the above discussion, it is clear that crypto order book contains information about pairs. In the world of cryptocurrencies, coins or tokens are mutually exclusive and can be traded at will. One currency pair can be exchanged (sold or bought) for another currency, or another currency can be exchanged for the first currency. There are two types of trading pairs.

• Crypto-crypto pairs (BNB and BTC).
• Crypto pairs (STEEM and USDT).

=> Pros and Cons:

During cryptocurrency trading, there is a preferred bid and ask rate for buying assets. These states are known as support and resistance levels. A Support level is a condition where a downtrend appears to have stopped or stopped and an uptrend is expected to begin. This is the state or level where buyers have active buyers and buy more assets whenever the price of the assets increases to get a better profit.

A resistance level is a state or states where an asset's upward trend appears to have peaked. From there, depreciation of the assets is expected to begin in the state or in the state where the seller is proactive and has the opportunity to make a better profit where he sells his property.

Resistance and support levels are shown in this chart. You can see that the higher level is resistance and the higher level is support.

=> Order Delay:

As you know, the price of cryptocurrencies is not constant. They rise and fall randomly in the market. Limit orders are a useful and useful tool in this regard. A limit order means setting a price limit on an asset. This means that whenever the price reaches this level, the asset itself has to be sold. There are two types of limit orders in cryptocurrency, the first is the buy limit order and the second is the sell limit order. Let's explain this with an example. Suppose you want to buy 1 ETH token. When I checked the ETH token price, it was $2500 at the time, but I wanted to buy it cheap, so it was around $2000. So, if you set a purchase limit of $2000, you will be notified whenever the price reaches this limit and you can buy ETH tokens. The same applies to sell limit orders. At the moment, the price of an ETH token is $2500 and you want to sell your ETH token at a higher price. In this situation, you can place a sell limit order at $3000 and sell ETH when the price reaches that limit. So that's a small order in the world of cryptocurrency.

=> Market Order:

A market order, as the name suggests, is an order to buy or sell an asset at the prevailing market price for a specified period of time. Buy and sell orders of buyers or sellers are called market orders according to the market price of the asset. Consider the example of the ETH token. Suppose the current market price of an ETH token is $2875 and you place a buy or sell order at the current price.