Welcome to Kafycrypto, your number-one crypto news, and web marketing agency. So why do crypto charts look the same? Do you know? We have the answer in this post. Please read on.
Crypto charts can be interesting to look at, and even alluring in some cases. Some of the charts look well organized and decorated with beautiful color combinations. Some people have found themselves getting addicted to charts and always want to be in front of the bars pushing upwards or downwards.
However, one thing you may quickly notice, after some time as a beginner, is that the charts for the different kinds of coins or tokens are similar.
In my early days as a trader, I was slightly bordered by this similarity. I didn’t understand why I needed to open separate charts for each cryptocurrency when they all looked the same. I mean, why can’t I just trade all of them on one chart? Lol…
I was just being a newbie… Let’s see why.
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Why Do Crypto Charts Look the Same?
Crypto charts look the same regardless of the coin because they are graphs plotted with the same kind of date -time and price.
Another reason cryptocurrency charts look alike is that most of them a created, and operate, with the same tech. Since the tech is the same, there’s a tendency that individual protocols will respond the same way to technological stimuli.
Also, most crypto charts look the same because their prices are affected by rumors, news, and speculation. These market factors affect buyers and sellers moving the general sentiment in a particular direction in most cases.
It has also been observed that most crypto coins move in the same direction as Bitcoin. This is because the altcoin prices are units of Bitcoin.
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What is a Crypto Chart?
A crypto chart is a graphical representation of changes in the price and volume of a crypto asset over time. Crypto charts convey historical data on price movement in a visual manner that is valuable to investors.
Crypto traders use these charts to monitor and analyze the price movement of cryptocurrencies to make investment decisions.
A crypto chart is a visual tool that enables participation in the trading and analysis of cryptocurrency.
In the following sections, we’ll learn how to read crypto charts and where to find them.
Where to Find Crypto Charts
Crypto charts exist on the Internet. There are online companies that offer tools to traders for free or for a monthly subscription. Crypto charts are often included in the packages offered. Some of the charts are applications that run in browsers while others are downloaded and installed on your computer.
Some examples of such companies include:
You can sign up with any of these sites and gain access to their robust crypto charts.
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How to read cryptocurrency charts
Understanding crypto charts takes some learning because there are many elements to master. However, a good understanding of charts is a requirement for trading crypto.
Learning crypto charts can be in stages, thus, we recommend that you go about learning in the following compartments:
Types of Crypto Charts
There are different types of crypto charts, and the differences arise from visualization. Some charts are regular line graphs with simple visualization. Then there are bar charts and candlestick charts. As a crypto trader, you need to understand how each one of these charts represents data.
Components of a Crypto Chart
Charts appear complicated at first glance. Beginners tend to get confused on first contact with crypto graphs. But after a complete introduction to the components of the trading chart, it becomes a smooth sail. Some aspects of crypto charts include; a tools bar, time scale, and price meter. Among the tools in the toolbar are indicators used for technical analysis.
The combination of the elements of a crypto chart almost always tells a story. Technical analysis is the process of deciphering what the market is saying by observing price action and patterns on the crypto chart.
It is known that the price action on the chart always factors in all the events that lead to price movement in any direction. As a result, traders can rely on crypto charts for making all trading decisions.
It is true that most crypto charts look the same. The reason they do so is that the charts are formed of the same data. Another reason they look alike is that altcoin prices are based off of the Bitcoin price.
However, this should have no contrary effect on a trader because each coin is unique, and every chart tells a story. So, go ahead and do your research on the charting platforms we have introduced to you and pick what’s best for you.
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