To trade successfully on the exchange, you need to learn how to read cryptocurrency price charts. This is a very important skill for a successful trader. It is not enough to know the price, it is necessary to fully understand what information the chart carries. Such charts help assess the market situation, trace the demand-to-supply ratio, and understand whether the deal is profitable.
Types of price charts
There are three types of charts:
- line chart;
- candlestick chart.
Line chart. This graph shows the change in the parameter of a particular cryptocurrency over time, for example, its price or market share. Using such a diagram, you can judge the profitability of the coin during the month, week, day or last hour.
Bar graph. Histograms are very useful for cryptocurrency traders and investors. They consist of vertical lines and small horizontal bars. Such graphs are simple and colored.
“Japanese candles”. This chart is also used to show the price movement of currencies; usually, one candle is one day. It is the most popular chart among cryptocurrency traders. As a rule, it is intended for advanced traders, but it is not difficult to understand them.
Each candlestick shows the price of the opening, the prices for a given time period, and the price for closing.
If you understand the chart, it can help a lot, as it gives you the opportunity to assess the dynamics, not just the current price.
However, analyzing prices is only part of the task, because it is equally important to understand the reasons for the sharp ups and downs. So do not forget to follow the news that may affect the state of the cryptocurrency market – if something significant happens, no charts will help predict the next price jump. Try to analyze the charts and make a forecast. It won’t work right away, but it’s worth trying.
The start of working with cryptocurrencies
So, if you decided to work with cryptocurrencies, you need to read a lot of information about this topic, to know all pros and contras, to read the theory, the articles about cryptocurrencies. It is necessary to find a product that will suit your interests. You will need to find, analyze, and make conclusions according to price charts in your country. To search for different charts such as btc to eth chart you can use the internet.
How to cash out cryptocurrency in Canada?
The situation here is very similar to that in the United States because cryptocurrency in Canada is not a means of payment or a recognized currency. Even transactions to pay for services or goods with digital money are considered barter. If taxes do not scare you, then there will be no problems with cashing out the crypt. If you do not want to pay the state your hard-earned money, then you will have to go to offshore companies.
But here the question is about the profitability of such a solution – the registration of an offshore company often requires considerable investments. Most likely, it will be more profitable for ordinary users to pay tax.