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Crypto-Currency global liquidity under a microscope

January 15, 2020 - Reviews - , ,

With the boom in the crypto market, particularly after 2017, we have seen
an influx of traders in the niche. It is worth noticing that unlike regular
traders, the newcomers in this industry have different mindsets, metrics
of market measurement, and hence, they require far different tools as
well.
To cut the long discussion short, crypto traders need to have robust tools
and technologies at their disposal to understand the current market
positioning in order to make calculated decision. Every crypto trader
should be leveraging market depth in their trading decisions and every
investor should be considering historic depth in their long purchases.

What is Market Depth?


Before we get into the specifics, let’s understand what is market depth.
Just to set the perspective here, many people refer to it as liquidity, and it
basically shows the activity of a market by listing all the outstanding open
orders. This liquidity data can ensure that investors don’t buy ill-liquid
assets and that traders time their entry/exit as effectively as possible.
Furthermore, large buyers/sellers can make sure that they sell on the right
exchange(s) at an appropriate rate to prevent major market manipulation
on accident. Its also interesting to see manipulation from fake buy/sell
walls to fake volume where a few thousand dollars in books create nine
figures of volume, magically. Market depth data reveals market sentiment
like few other tools and helps identify false data in other related data sets
such as volume.

Exploring VCDepth Market Depth Tool

Now that you have a pretty decent idea of the terms let’s move towards
the representation of liquidity. To offer a user-friendly experience, they
provide multiple graphing options and user selectable fields on the
website.
It is worth noticing that that traditional stock markets (e.g. NASDAQ) are
not able to provide level 2 data for individual assets, they only have level2
data on low liquidity contract vehicles such as futures and options.
Traditional stock market exchanges do not have the inherent ability to
track the order books for individual assets such as TSLA or MSFT. One of
the native features of the crypto exchanges, focused on by VCDepth
happens to be the availability of level 2 data at the asset level.

Note: Level 2 is a term for order book data for an asset, also commonly
called open-interest on contract vehicles. This data shows the aggregated
underlying bids and asks from buyers and sellers on any given asset.
VCDepth is positioning traders to make intelligent investment and trading
decisions by evaluating historic liquidity and leveraging order book swings
to scalp or swing trade. In general the open-interest of the crypto
markets is just as important indicator as volume and market cap, if not
more!
Some of the things that

  • VCDepth is tracking the broad crypto market liquidity
  • VCDepth provides historic market depth analytics
  • VCDepth provides the ability to see 100% of the open orders or
  • within a range of the current price to validate orders actually in play
  • (1%,2.5%,5%,10%,15%,100%)
  • VCDepth provides the ability to see liquidity on an asset, an
  • exchange, a regional market or the global market all independently
  • VCDepth provides market depth of underlying pairs
  • VCDepth provides an array of ways to see market depth data from
  • books, to bids and asks to Market Depth Ratio and more
  • VCDepth Provides a screener with user choosable fields to include
  • numerous market depth related fields

There seems to be no other market depth site out there quite like VCDepth and the data it provides for free is generally unavailable elsewhere and extremely helpful for active traders. I cant recommend enough leveraging market depth in your investment and trade decisions and leveraging the leading source of market detph data as one of your go to tools, https://vcdepth.io.

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