How can make profits on your cryptocurrency trades when you are a new trader? What is it that seasoned traders are doing to predict prices in the market that you are not doing? Well, as soon as you land on a trading or cryptocurrency exchange, you see graphs and charts. That’s what you see on any website related to any financial market in the world. What are those charts telling you? Can you make profits on your trades every time if you use those graphs?
Let’s get into some basics of reading cryptocurrency graphs so you know what their value is. And while you are at it, take a look at this Neuer Capital review so you can discover an online platform for making money on cryptocurrency trading.
Reading Cryptocurrency Graphs
When you start trading cryptocurrencies, the first thing you will notice on your trading platform is the cryptocurrency graph or chart. These charts tell you the current status of the market and based on the status of the market, you have to predict whether you should buy an asset or sell it. The most basic chart that you will usually find on brokerage and other cryptocurrency websites is the line chart. On this graph, you see a line moving from left to right and upward and downward movements.
On the X-axis of the graph i.e. horizontal axis, you have time. On the y-axis i.e. the vertical axis, you have the price or value of the asset. In short, when you look at the cryptocurrency chart, you find out what the price of the asset is at a particular point in time. You can decide how much time you want see the chart for. For example, your chart might show you the movement of the price of a particular asset for the duration of a year. You can make this duration shorter or longer based on your comfort level. The higher the line goes, the higher the value of the asset and vice versa.
Another famous type of graph that traders like to see is the candlestick chart. On this graph, you see the same elements, plus some more, in the form of candlesticks. The candlestick has a body that can be red or green, with red signifying a bearish whereas green signifying a bullish market. The wicks on top and bottom show you the highest and lowest prices during the chosen time respectively.
Before Reading Graphs
It is important to know here that just reading the graphs is not enough. You have to know some sort of analysis to predict the price of the asset. Once you understand that, you can trade cryptocurrencies and make profits from them on platforms like https://xtrgate.net/. Also, you must not forget that despite all the analytical methods, charts, graphs, indicators, signals, etc. that exist in a financial market to help you with your trades, nothing gives you a guaranty on the outcome. You are still just predicting and forecasting.
Make sure you spend some time on learning graphs and then the analytical methods, such as the Fibonacci retracement, to predict upturns and downturns in the market. Furthermore, stay in touch with the latest news to forecast the prices of the cryptocurrency assets.