How To Read a Crypto Order Book
To read a crypto order book, start with the best bid and best ask. Then look at the spread, market depth, and order sizes to understand how much buying and selling interest is available near the current price.
A crypto order book has two sides: bids and asks. Bids show open buy orders, while asks show open sell orders.
What Do Bids and Asks Mean?
A bid shows the price a buyer is willing to pay and the amount they want to buy. An ask shows the price a seller is willing to accept and the amount they want to sell.
The highest buy price is the best bid. The lowest sell price is the best ask.
Reading a Crypto Order Book: A Simple Example
Have a look at this simplified crypto order book:
Here, $100.01 is the best ask and $100.00 is the best bid. The amount column shows how much crypto is available at each price level.
When reading an order book, check three things:
- Spread: the difference between the best bid and the best ask. In this example, the spread is $0.01. A narrower spread often appears in more liquid markets.
- Depth: The amount of buy and sell orders available across different price levels. Greater volume near the market price generally indicates a deeper order book.
- Large Orders: Large buy or sell orders can show where interest is concentrated, but they should not be treated as reliable price signals because orders can be changed or cancelled.
You can view these live bids, asks, and order sizes in Visiion’s Advanced Mode. The order book appears between the price chart and order placement panel.
Also Read: What are Pre-IPO Perpetual Futures in Crypto? A Complete Guide.
Key Takeaways
A crypto order book helps you assess liquidity and see where buyers and sellers are willing to trade. It does not predict price direction, since orders can change or disappear at any time.
