When you open the Bitcoin exchange and check the market conditions, in addition to the K-line chart, you will also see something called "market depth".
Market depth refers to the ability of the market to withstand large transactions without large fluctuations in the price of Bitcoin.
If you want to quickly complete a transaction of 100 bitcoins.
On Exchange A
You need to buy 20 at 10000, 20 at 10100, 20 at 10200, 20 at 10500, and 20 at 10800.
Your total cost is:
10000*20+10100*20+10200*20+10500*20+10800*20=1,032,000 (32,000 more expensive than the exchange).
After the purchase, the price in the exchange was pushed up to 10,800.
On exchange B you need to buy 100 units at a price of 10,000.
Your total cost is:
10000*100=1,000,000
After the purchase, the price in the exchange is still 10000.
Therefore, it is recommended that you choose an exchange with better market depth. Trading depth has two major benefits:
The market price is relatively more stable in large transactions
Large transactions are also cheaper
