Your first venture into the world of cryptocurrency can become incredibly overwhelming with all the data and charts you need to keep up with, along with millions of buzz words being thrown at you all at once. It is very easy to get lost having no idea where to start or what to do. There are lots of ways to get confused. However, it is not as difficult as it may seem at first glance. There are many ways to get involved that are accessible to the novice.
The first thing you need to know is the line chart. It shows a simple progression of a currency over time, represented by a line. You’ll also come across line charts with multiple lines that track different aspects such as price or the market share. It gives you a good idea of what the currency has done over time.
A very important feature of just about every type of trading chart is the “zoom” feature. It can show you the entire lifetime of tracking, and can be set to different time increments such as three years or one month. It’s incredibly helpful to see the trends of the coin.
A candlestick chart is a little more advanced, and is what you’ll usually see on most trading sites. It shows things like price, market tap, and volume. It is like a line chart, but more detailed about the trading at any given period. A candle shape will display the opening price, the highest and lowest price of a selected time period, along with the price at which it closed at the end of a market day. The “wick” of the lines at top and bottom indicate the lowest and highest prices of the selected time.
It can be difficult to jump into cryptocurrencies, but taking it slow and learning about the different types of charts and how to read them is your best bet to succeed.