The Depth of Market is a table with digital indicators that display the price to buy or sell a cryptocurrency asset. These indicators are very important in market trading, they clearly show the current rate and direction of the trading. As a rule, indicators are highlighted in red (asks), in other words, these are sell orders, and green ones are buy orders (bids). And all together they call it a market supply. Or just a glass.
To understand how exaggerated the real capitalization of the cryptocurrency is, you need to compare the depth of the order book in dynamics (in other words, the liquidity at the moment and for a certain period in the past).
There are several reasons why such glass depth will not provide a complete picture of liquidity. Because at any time a limit order can be removed or added to the general order book. And the problem is that there are no deals in the order book. It is only a wishes to buy or sell at a specified price. And they are so changeable … If you want to have up-to-date information about liquidity – you also need to use the tape (history) of transactions.
But there is also another side – a large number of fictitious transactions and exchanges twist volumes. Besides, there are also market-making algorithms that cause turmoil, mislead the minds of newcomers and clean out their wallets. Millions of dollars are lost on such manipulations, and someone else fills his pocket, taking advantage of the low awareness of the crypto market participants.
You will not find such information in the public domain, (about the depth of the order book + lists of all transactions), and only experienced specialists can discern truth from fiction and get the maximum benefit from the order book and increase the assets of their investors. This will give the maximum effect with the complex use of tools.
FOBS Asset Management company has useful knowledge and rich experience in digital asset management and can identify the depth of the order book, fictitious transactions, assess the real direction of movement, and the interest of other players at a specific time. But even this will not give you a 100% guarantee of a successful transaction. And is there at least one thing in our life with a 100% guarantee? Except for death and taxes 🙂