Guide for traders

A very useful type of information is the distribution of a coin’s amount among the users of a trading platform. The more people hold a coin, the more active is trading. This is a kind of information that we cannot derive from all platforms, but it can show us whether there is interest from other traders in the coin we intend to buy. In order to derive this information – wherever it is possible - we have to go to the Order Book and select the "Distribution" field in the chart. In order to take a look at its structure and the information we can obtain, we will go to Cryptopia’s NXS/BTC market.

From the tool’s menu, we can determine the maximum quantity of holders of this particular coin we want to be displayed. The choices we have are: up to 10, up to 100, up to 1,000 and up to 10,000. The preset is set to 100.

Moving the mouse pointer over the graph, we see that the largest quantity a user holds is 33,966.71 coins and the smallest is 500 coins.

By selecting from the menu 10,000 holders of this currency, we may see  that the smallest quantity owned by a user is 0.00000003 NXS. One of the reasons why this information is useful, is to find out how many holders of this currency are able to sell and change the price. Given that the current value of this currency is 0.00039931 BTC and that the minimum purchase value set by this platform is 0.00050000 BTC, it is obvious that several users hold quantities that they can’t sell and thus, they can’t change the price. In particular, each user must hold at least 1.25 NXS in order to be able to sell.

In the same way, we can find the distribution for other currencies and make comparisons. So, we can get another currency, eg. NYAN, and find out how fewer are those who can sell this currency compared to NXS.

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