Coinbase, Exchanges

What Does the Depth Chart Mean on Coinbase?

When you log into Coinbase and go to your portfolios page, you may notice something called a “depth chart” on the right side of the screen. But what is a depth chart and what does it mean?

In short, a depth chart is a visual representation of the order book for a given cryptocurrency. The order book is a list of all the buy and sell orders that have been placed for that coin.

The depth chart shows how much of the coin is being bought and sold at different prices.

The y-axis of the depth chart represents the volume of the coin that is being traded, while the x-axis represents the price. The left side of the chart represents the buy orders, while the right side represents the sell orders.

You can think of it as a kind of seesaw, with the buy orders on one side and the sell orders on the other.

The middle of the chart is called the point of equilibrium, where the buy orders and sell orders are equal. The prices above and below this point are called the bid and ask prices, respectively.

The Depth Chart on Coinbase is an extremely complex and technical tool. It is not intended for novice users and should only be used by experienced traders. If you do not understand the information presented in the chart, you may make costly mistakes or even suffer financial losses when trading on Coinbase.

The bid price is always lower than the ask price.

You can use the depth chart to get an idea of how much buying or selling pressure there is at different prices. If there is a lot of buying pressure (i.e.

, more buy orders than sell orders) then the price will tend to go up. Similarly, if there is more selling pressure then the price will tend to go down.

The Coinbase depth chart is live and updates in real-time as new orders are placed. This means that you can use it to get an idea of where prices are headed in future.

If you see that there is a lot of buying or selling pressure building up at certain price levels then you can make informed decisions about when to buy or sell your coins.

In conclusion, the Coinbase depth chart is a valuable tool that you can use to help make informed decisions about trading cryptocurrencies. It shows you the level of buying and selling pressure at different prices, which can give you an idea of where prices are headed in future.

Previous ArticleNext Article