The first time you get involved in cryptocurrency trading, you might become overwhelmed by all the figures and charts you have to deal with. If you have a history of the stock exchange, you’ll find your experience there a little useful in understanding cryptocurrency charts. If, on the other hand, you don’t have any idea how trading works, this is your guide to understanding cryptocurrency trading charts.
Cryptocurrency Charts 101
1. Understanding the Line Chart
This is the most fundamental chart you’ll find when you start cryptocurrency trading. It’s a simple progression of the cryptocurrency you’re trading over a period. The line can track different aspects of the market share and price. Studying them will give you an idea of how the price of the coin has changed over time.
2. Understanding the Candlestick Chart
This is more advanced than the line chart. You can find this chart on top exchanges like Binance, Coinbase, and Cex.io. It doesn’t show the price but also shows the volume, market cap, and details about trading within a given period. A candle typically displays on the highest price, lowest price, opening price and closing price. Some lines at the bottom represent the highest and lowest price. The color of the candle tells you which price is higher than the other (opening or closing). The green bar stands for a higher closing price while red bar stands for the higher opening price. The green bar indicates a Bullish trend while the red bar indicates a Bearish trend.
3. Understanding the Zoom Feature
The zoom feature is usually available in trading charts. It can show an entire lifetime of tracking if set at “All”. The zoom feature allows you to keep track of different trends at the same time. It can also hover the line chart to give you the data for a given period.
It’s that simple. With this guide, you can start your cryptocurrency trading project today. You don’t need to over think it.