All lessons
Understand crypto before trading
1What is crypto trading? 2Blockchains, ledgers and consensus 3Bitcoin, Ethereum, coins and tokens 4Build a safe practice plan
Wallets and personal security
5Wallets, keys and custody 6Recovery phrases and backups 7Networks, addresses and transfers 8Phishing, approvals and scams
Understand the trading venue
9Centralized and decentralized venues 10Pairs, order books and spreads 11Spot orders and execution 12Fees, slippage and liquidity
Risk before returns
13Size a spot position 14Portfolio concentration and correlations 15Drawdown, R multiples and expectancy 16Stablecoins and counterparty risk
Read crypto market structure
17Candles and an around-the-clock market 18Trends, ranges and price levels 19Breakouts, volume and confirmation 20Indicators and volatility
Apply chart frameworks to crypto
21Dow-style structure: what would change your view? 22Wyckoff in spot crypto: read the range carefully 23Elliott counts: keep an alternative on the page 24Liquidity sweeps: separate the wick from the story 25FVG and OTE: transfer the rules, not the promises
Understand asset economics
26Supply, market cap and FDV 27Token unlocks and distribution 28Network activity and on-chain data 29Research a project critically
Understand derivatives before considering them
30Spot, futures and perpetual contracts 31Funding, basis and mark price 32Margin, leverage and liquidation 33Open interest and liquidation data
Derivatives through paper examples
34Linear perpetual P&L: calculate the money, not the excitement 35Collateral and liquidation: a deliberately simplified worksheet 36Funding carry: count what you keep 37Dated futures: follow both sides of the hedge 38Calls and puts: payoff is not profit
Explore DeFi with caution
39Smart contracts and applications 40AMM pools and price impact 41Liquidity provision and changing asset value 42Staking, lending and bridges
Understand ecosystem risks
43Constant-product AMMs: calculate the moving price 44LP divergence loss: choose the right comparison 45Reorgs, bridges and L2s: what is actually final? 46MEV and arbitrage: subtract the competition 47DEX approvals: inspect before you sign
Build and test market hypotheses
48Market context and catalysts 49Write a setup rulebook 50Profiles, order flow and SMC limits 51Backtest crypto data honestly
Research, allocation and review
52Token vesting: size the unlock, then ask why 53On-chain metrics: count activity, not stories 54Stablecoin depeg: map access, not just reserves 55Rebalancing: weights change even when you do nothing 56Advanced crypto capstone: defend the whole plan
Practice, review and stay informed
57Paper trade and keep a journal 58FOMO and decision routines 59Records, local rules and changing information 60Capstone: research and risk plan
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Pairs, order books and spreads

3 min read

A price on the screen is not an unlimited offer. Look at how much is available at that price.

Here is what we will figure out

Read the side and quantity of an executable quote.

BTC/USDT quotes the amount of USDT for one BTC. Buying the pair exchanges quote units for the base asset. Selling does the reverse. USDT is an asset with its own risks, so a USDT-denominated profit is not automatically a bank-dollar profit.

The best bid is the highest displayed buying price; the best ask is the lowest displayed selling price. Their difference is the spread. Order-book depth shows displayed quantities at price levels, but orders can change or be cancelled before yours arrives.

Crypto liquidity is fragmented across venues and pairs. A chart's last price may differ from the available price for your quantity. Check the timestamp, venue, pair and order size before comparing prices, and separate displayed liquidity from guaranteed execution.

Let’s use numbers · hypothetical example

Hypothetical: bid 99, ask 101, each for 1 token. Buying 1 at 101 and immediately selling at 99 loses 2 before fees. An order for 5 may consume more price levels and cost more.

Keep in mind

Displayed orders can vanish; the visible book is not a promise to fill you.

Your turn

Sketch three bid and ask levels. Calculate a one-token spread, then explain why a five-token estimate needs depth.

A quick check before we move on

At which side does an immediate buyer usually trade?

  1. Yesterday's close
  2. Available asks
  3. Only the midpoint
Check answer

Available asks An aggressive buy consumes sell orders, subject to available quantity and venue rules.

Sources and further reading

Content reviewed: 29 October 2026

All lessons

Educational material with hypothetical examples. Trading can cause substantial losses. A course, pattern, stop order or past result cannot guarantee a profit or limit every loss. Practise in simulation and check current rules and product terms in your jurisdiction.