How Does Coinbase Advanced Trading: Depth Charts Explained Work?

Coinbase Advanced Trading: Depth Charts show you how much crypto people are buying and selling at different prices, like a crowd cheering for their favorite team.

Imagine you're in a big stadium watching a soccer game. On one side of the field, there's a group of fans who are ready to cheer really loud if their team scores a goal, that’s like buyers who are happy to pay more money for crypto. On the other side, there’s another group who will shout loudly if their team loses, those are like sellers, who are ready to sell crypto even at lower prices.

Depth charts show these groups in real time. The buyers are listed on one side (usually the left), and the sellers on the other (usually the right). Each row shows how many people want to buy or sell at a certain price, like counting how many fans are ready to cheer for each possible score.

If lots of buyers come in, the price might go up, just like if the team scores a goal and everyone gets excited. If sellers flood in, the price may drop, like when the team loses and the crowd starts to sigh.

It's like having a scoreboard that tells you what’s happening in the game, but instead of goals, it shows how much crypto is being traded at each price!