Key CEX Coin Metrics

Many traders and investors, before investing in a coin or project, study the project's website, social networks, publications, and blockchain - this is correct. But most don't pay attention to trading pair parameters on CEX.

If a coin is traded on CEX, it's worth analyzing the pairs themselves a bit more carefully.

Below I'll break down the key metrics to pay attention to when analyzing trading pairs on CEX.

1. Volume

This is the first thing traders pay attention to, but it's not that simple. It's not just about having volume, but about it being real.

Therefore, you should pay attention to volume, but not overestimate this parameter in isolation from other metrics.

2. Spread

Spread is the difference between the first buy order and the first sell order. Always before buying a token, look at what price you can sell it for immediately.

A high spread is usually considered a difference above 2%. For Tier-2 / Tier-3 exchanges, this often means no one is watching the pair: there's no active trading and liquidity support. In this case, the risk of delisting the trading pair increases.

If you don't want to finance a project and then face delisting - pay attention to the spread.

3. Liquidity

Liquidity is a key parameter. It's important to look at how much liquidity is in ASK and BID orders, what the order book depth is, what volume can be sold at the current price, and what slippage will occur.

To evaluate this, study the order book, as well as the "Depth" section on the exchange.

Conclusion

In this article, I described three of the most basic and in-demand metrics for analyzing trading pairs on CEX. There are significantly more metrics - for example, in professional market-making activities, dozens of different indicators are monitored. However, for an ordinary trader or token holder, this is not required: a basic understanding of market structure is sufficient.

This article is educational in nature and is not a trading recommendation. Engage in self-development and independent analysis. I hope the material was useful to you. DYOR.