Crypto Investing — Intermediate: Reading the Market: Orders & Liquidity

On centralized venues, the order book lists resting buy (bid) and sell (ask) orders. The gap between best bid and ask is the spread. A market order executes immediately at the best available price; a limit order executes only at your chosen price or better.

Liquidity — how much can trade without moving the price — matters more than the headline price. Thin markets gap and slip; deep markets absorb size.

Key takeaways

• Bid/ask/spread and order types are the grammar of trading.
• Market orders prioritize speed; limit orders prioritize price.
• Liquidity depth, not just price, determines real execution cost.

Educational disclaimer: This material is provided by Nieto Engineering Inc. for internal education only. It is not investment, financial, legal, or tax advice and is not a recommendation to buy, sell, or hold any asset. Cryptocurrency, equities, and prediction markets carry substantial risk, including total loss of capital. Past performance does not indicate future results. Always do your own research and consult a licensed professional before investing.