An orderbook or order book is an electronic list of buy and sell orders for a particular financial asset or instrument, ordered based on price. In crypto, cryptocurrency exchanges offer an Order Book on a specific asset's trade page. It lists vital information about trades in the market, including an asset's average price, volume, and value.
An asset with a more significant market depth has a lower likelihood of experiencing potential price manipulation, making it a safer digital asset to trade. The order book offers the last traded price and the best bid price and ask price, critical information that can help traders decide when to enter the market and how to trade the asset.
The orderbook is a helpful indicator that can analyze the market depth, trading volume, or interest in a specific cryptocurrency. The orderbook can show you the number of active limit orders at each price level at any given moment.
In addition to offering insight into market depth, analyzing the order book is a helpful way to estimate the price of a crypto asset at a particular period. You can also see whether it is an excellent time to buy or sell the asset based on the number and type of orders listed.
