The Order Book is a fundamental element in digital asset trading that records and displays a structured list of all buy (bid) and sell (ask) orders active in the market at any given time. Here we inform the function of the order book :

• Market Transparency: The order book provides a transparent view of all trading activity in the crypto market by displaying all orders waiting to be executed. This includes the price and volume of active buy and sell orders.
• Market Pricing: The order book serves to establish the current market price by matching buy and sell orders. The last price recorded on the order book is the most recent price at which the transaction has occurred.
• Indication of Market Liquidity: The order book illustrates the depth of the market by showing the number and price of pending buy and sell orders at various price levels. This helps in assessing the extent to which the market can absorb large orders without causing significant price changes.
• Trend and Pattern Analysis: The order book allows traders to analyze the concentration of orders at certain price levels. The concentration of buy orders below the market price or sell orders above the market price may indicate support or resistance levels.
• Risk Management and Trading Strategy: Traders can use data from the order book to adjust their trading strategies. For example, they can place limit orders at specific prices or use market orders for quick execution.
• Market Sentiment Mapping: The order book helps in identifying market sentiment by monitoring changes in the number and price of orders. Significant changes in the order book can indicate a change in market sentiment.
• Improved Order Execution Efficiency: The order book provides information on the price and volume of available orders, allowing traders to choose the optimal time and price to execute their orders.