Understanding BID and ASK Calculations for Ethereum Orders

When creating a chart to monitor order data, it is crucial to understand how bid and ask prices are calculated. In this article, we will discuss the process of calculating BID and ASK on Ethereum using the Cryptsy API.

What are bid and ask prices?

The bid price (BID) is the highest price a buyer is willing to pay for an asset at a given time.

The ask price (ASK) is the lowest price a seller is willing to accept for an asset at a given time.

How ​​​​are BID and ASK Calculated?

In Ethereum, bid and ask prices are calculated based on real-time market data. This process involves:

• Fetching Market Data: The Cryptsy API fetches market data from the Ethereum exchange servers.

• Price Calculation

  : The API uses algorithms to calculate bid and ask prices based on market data. These calculations typically include:

• Average True Range (ATR)

• Moving Averages

• Relative Strength Index (RSI)

• Time Stamp: The calculated bid and ask prices are time stamped.

• Price Storage: The calculated bid and ask prices are stored in a database or data structure such as an array or hashmap.

Cryptsy API Implementation

To implement BID and ASK calculations on your chart, you need to:

• Register a Cryptsy account and obtain an access token.

• Use the GET /market/bid endpoint to get the bid prices, and then the GET /market/ask endpoint to get the ask prices.

curl -X GET \
-H 'Authorization: Bearer YOUR_ACCESS_TOKEN' \
-d 'id=1'

Response:

{
"pray": [
{ "timestamp": 1643723400, "price": 2.5435 },
{ "timestamp": 1643719400, "price": 2.5428 }
],
"ask": [
{ "timestamp": 1643723400, "price": 2.5447 },
{ "timestamp": 1643719400, "price": 2.5433 }
]
}

Chart implementation

To display BID and ASK prices on a chart, you can use a data structure such as an array or hashmap to store the calculated prices. Here is an example implementation using Python:

import json
class EthereumMarket:
def __init__(self):
self.bids = []
self.asks = []
def get_bids(self):
for pray in self.bids:
print(f"Timestamp: {bid['timestamp']}, Price: {bid['price']}")
def get_asks(self):
for ask in self.asks:
print(f"Timestamp: {ask['timestamp']}, Price: {ask['price']}")

Example usage
market = EthereumMarket()
market.get_bids()
whileTrue:
response = input("Enter 'get bids' to get current prices or 'exit' to exit: ")
if response == "exit":
break
else:
market.get_asks()

This code retrieves the current bid and ask prices from the GET /market/bid and GET /market/ask endpoints, respectively. You can use this implementation as a starting point for your chart.

Tips and Variations

• To improve performance, consider using a database such as Redis or MongoDB to store the calculated prices.

• Consider adding additional features such as filtering by asset pairs or timestamps to enhance the functionality of your chart.

• When fetching bid and ask prices from external APIs, be sure to follow security and rate limiting best practices to avoid API rate limits.

By following these steps and understanding how BID and ASK prices are calculated on Ethereum using the Cryptsy API, you can create a powerful chart that effectively visualizes cryptocurrency market order data.