The amount of data and charts, along with all the buzz words the crypto world has to offer, is sometimes more than one can handle. If you feel overwhelmed, don’t worry, it is not as complicated as it seems. More importantly, we are here to break things down for you and explain them in a more familiar lingo.
Although the world of finance uses many different kinds of charts, the terms ‘Line chart’ and ‘Candlestick’ should be enough to get you started. You will also find these tools on the ICONOMI platform. Remember? We are striving to make your experience as smooth as possible!
The Line Chart
When you were younger did you love or hate math? Either way, you're going to love charts from now on, since we'll make it simple for you – and they are about ‘money,’ not just X's and Y's.
A line chart is one of the most basic charts you will come across in the crypto world since it represents a price progression over a certain period of time.
Here’s an example of a line chart from our platform, representing Bitcoin’s price movement over time:
A slightly more complex line chart can include more than one variable, like price, market capitalization, trading volume, etc. On our platform, you can find such a chart under your account value where you can track different types of balances – all at once.
At first it might look a bit confusing, but as soon as you scroll your mouse over the chart, it will display all the values and show you what each one of the lines represents.
When it comes to line charts, you always have an option to zoom in or zoom out to see the bigger picture. In order to change the time frames, simply click on different zoom intervals in the top left corner (24h, 1W, 1M, 3M, etc.).
Ok, now you’re equipped with everything you need to know about the line charts. It’s time to jump into a bit more advanced stuff and get yourself ready for the great war (keep reading and you will know what we’re talking about).
The Candlestick Chart
Man, this one doesn’t look anything like the charts we remember from school days, right? Not to worry! The explanation can be found below! Just so you know, you will come across candlesticks in many financial apps as well as crypto exchanges meant for professional traders.
Bears vs Bulls?
When it comes to candlesticks, every individual bar represents a battle between buyers – also known as bulls, and sellers – also known as bears. As in the real world, the battle (a single candlestick) can last anywhere from a minute to a few days.
A green candle means the price has increased – the bulls won the battle. So what do you think a red candle means?
What’s an open or close price?
The wide midsection, known as the body (the green and red things you see above), represents the difference between the first trade – the opening price – between a buyer and a seller, and the last trade – the closing price. The height of the body tells us how strongly the battle was won, meaning what the price difference in the selected time frame was.
What about Wick or Shadow?
The wick or shadow is displayed as the thin line extended above and below the body, and marks the minimum and maximum price in a given time period.
In order to better understand the battle between the bulls and the bears, our charts will be right there waiting for you 😉
Before your investing journey begins, you can also learn about the “5 Common Misconceptions about Crypto Investing”.