What are the different bitcoin order types?

For introductory purposes there are two primary order types to know: Market order – buy or sell immediately for the best available price. These orders are filled by immediately pairing buyers and sellers with orders currently in the books. Limit order – buy or sell a set number of bitcoins at a specified price or better.

What is a cryptocurrency order book?

If you want to get a behind-the-scenes look at your favorite cryptocurrency’s price action, the order book will be your best friend. It takes two to tango in the world of crypto trading, where a dynamic relationship between buyers and sellers is always on display in something called an order book.

What is the Yellow Box on the bitcoin order book?

The yellow box (#4) highlights a snapshot of the order book $2 above and below the current trading price (approximately $128). In this example, there are 124 BTC of bids at $126 and 344 BTC in cumulative bid volume between $126 and the current price of $128.

What is an order book?

An order book is a ledger containing all outstanding orders – instructions from traders to buy or sell bitcoin. An order to buy is called a “bid” and an order to sell is called an “ask.” Bids and asks are paired up as soon as their requirements are fulfilled, resulting in a trade.