It’s important, because measurement of the whole order book is going to give false results due to extreme values, which can make false illusion of liquidity for a given market. Left (green) side of the market depth bar is showing how many buy orders are open, and right (red) side of the bar is showing how many sell orders are open (both can be recalculated to BTC, ETH or any fiat we have available on the site). This way it provides the most interesting information already. How to use it? By default Market depth is showing the most liquid markets sorted by Combined Orders (which is a sum of buy and sell orders).

Due to rampant malicious practices in the crypto exchanges environment, we have introduced in 2019 and 2020 new ways of evaluating exchanges and one of them is – Confidence. Without liquidity there is no trading, illiquid markets tend to collapse in the long term. Because it’s a new metric – it’s essential to know how it works. Confidence is mainly based on liquidity, because it’s the most important aspect of cryptocurrency exchanges. Exchanges that keep market makers liquidity with expanding volume are those that keep all ratios in-tact and have overall score above 75-80% (it means that they have all liquidity ratios above minimum requirements, high web traffic participation, and are often regulated). If volume is huge (especially when it’s growing much faster than liquidity), and market depth seems to not keep pace with – it’s reducing overall score. Besides liquidity – there is also an additional factor in calculation of score – market depth/volume ratio.

What is Market depth? What is it measuring? Why it is important to use only 1% or 10%? Due to rampant wash-trading and fake activity – volume currently isn’t the most reliable indicator in the crypto space. Market depth is a metric, which is showing the real liquidity of the markets. It’s measuring 1% or 10% section of the order book from the midpoint price (1%/10% of the buy orders, and 1%/10% of the sell orders).

Crypto Trading Platform Gemini

Nobody is born skilled. Be patient and increase the amount of money invested gradually, there is no rush, and opportunities are unlimited. We must remember it once again because it’s the main reason why many traders are not profitable. Stick to your predefined trading plan, and never execute not-scheduled trades to recover losses. Experienced. Take your time and start with a small amount of money to test and define your trading strategy. Emotional trading is your worst enemy on your path to becoming a profitable swing trader. Don’t be cocky and prioritize learning over profits: The results will come, gradually. Finally, the last important tip is to avoid overtrading.

Traders and investors are increasingly joining the crypto market due to its high volatility and the potential for higher returns compared to traditional financial assets such as stocks, commodities, and bonds. Consequently, investors are applying multiple crypto trading strategies including, for example, hodling (suitable for long-term investors), swing trading (short and medium-term traders), and day trading (implemented by short-term traders). In this article, we’ll explain how swing trading works, providing you with a detailed guide and useful tips to make your journey more rewardable by limiting risks, and enhancing profit opportunities. The crypto market is more dynamic, and the inherent volatility creates more opportunities, especially in the short and medium term.