Order book: how to read the book of orders on an exchange

Order book is a tool that allows traders to see current buy and sell orders on a cryptocurrency exchange in real time. It displays lists of orders at different price levels, which can form the basis for trading decisions. Important components of the order book include demand (buying) and supply (selling), which are placed at specific prices. By reading the order book, a trader can understand where the main interest of market participants lies and what the trends are for a specific cryptocurrency. Proper analysis of the order book helps evaluate potential price movements and choose the optimal trading strategy.