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What Charts should Crypto investors use?
This article puts together some charts for crypto investors to look at when investing in cryptocurrency. It is crucial to remember that this is just the initializing stage, and there is a lot to do. There are eight charts to look at and pick one cryptocurrency per the requirement.
Charts which crypto investors should use
- The first chart shows the daily percentage change of Bitcoin in US Dollars, which is different from the price of Bitcoin in US Dollars because of changes in the BTC/USD exchange rate over time and shifts caused by news events. The price can be seen on an axis on the left, with the date going from top to bottom. One can see how after a lot of fluctuation between $13,000 and $19,000, it has recently stabilized around $10-11K. It is an excellent chart to start with if you’re not yet comfortable with the price of Bitcoin in US Dollars.
- The second chart shows the daily percentage change of Litecoin in US Dollars. Litecoin has recently been appreciating faster than Bitcoin, but it still trails behind Bitcoin. It is also a brilliant chart to start with if you’re not yet comfortable with the price of Litecoin in US Dollars.
- The third chart shows the daily percentage change of Ethereum in US Dollars. Ethereum is, again, appreciating faster than Bitcoin but again trails behind Bitcoin by quite a bit. It is one of the most important charts to look at, as it shows the price appreciation of a cryptocurrency in fiat currency. The appeal here is that you’re getting exposure to appreciate at a rate that doesn’t depend on going up over cryptocurrencies.
- The fourth chart shows the daily percentage change of Bitcoin in Euros. This chart is essential because it shows what Bitcoin can be bought for if you want to purchase Bitcoin outright through a service like Coinbase or Gemini and transfer it into an Ethereum-based token called an ERC20 token (which can now be bought for $0.60, according to Coinmarketcap.com). This chart also shows the price appreciation of Bitcoin in Euros as it moved from $1,000 to around ~$6,000 a few months ago (depending on which exchange you use).
- The fifth chart shows the daily percentage change of Litecoin in Euros. Again, as above how it hasn’t been updated for a while. This chart is just as important as the previous one, showing what Litecoin can be bought for if you want to buy Litecoin outright through a service like Coinbase or Gemini and transfer it into an Ethereum-based token called an ERC20 token.
- The sixth chart shows the daily percentage change of Ethereum in Euros. This chart is essential because it shows what Ethereum can be bought for if you want to buy Ethereum outright through a service like Coinbase or Gemini and transfer it into an Ethereum-based token called an ERC20 token.
- The seventh chart shows the daily percentage change of Bitcoin in Euros. It is also important because it shows what Bitcoin can be bought for if you want to buy Bitcoin outright through a service like Coinbase or Gemini and transfer it into an Ethereum-based token called an ERC20 token.
- The last chart is an index that compares the daily percentage change of Bitcoin (BTC) in Euros with the daily percentage change in Litecoin (LTC), Ethereum (ETH), and Bitcoin Cash (BCH). It is so you can see when cryptocurrency markets are out of sync, which happens randomly sometimes and not just during times of significant news events. It is a spectacular chart to start with if you’re not yet comfortable with the price of Bitcoin in Euros.
When looking at an exchange, think about the following when deciding which one is right for you:
How do I get started?
You can start by making money from buying stock in companies or other investment products. But cryptocurrency is not as widely traded and has a much higher barrier of entry than directly investing in companies or products.
What can you trade?
The first thing to be aware of is that not all exchanges allow cryptocurrency trades (some only allow traditional currency trades), and some exchanges have higher trading fees than others. In addition, some exchanges will only allow you to buy a cryptocurrency, meaning that if you want to sell it and make a profit, you’d have to find another exchange to let you do so.
Which cryptocurrencies are available?
It can vary widely based on the exchange. For example, some exchanges allow only cryptocurrency trades, while others allow traditional currency trades with cryptocurrencies. The list of available cryptocurrencies can also be different on each exchange. So check the supported cryptocurrencies before choosing an exchange, and make sure they’re the ones you want before making a trade.
Which cryptocurrencies are accepted?
Different exchanges accept different types of cryptocurrencies, so check the supported currencies before choosing an exchange.
Are there fees for deposits and withdrawals?
Every exchange charges a fee for purchasing or selling cryptocurrency, whether in Bitcoin, US Dollars (or Euros), or another currency. There may also be a fee for withdrawing your cryptocurrency to another wallet if you want to remove it from the exchange account altogether. Make sure that if the exchange charges a percentage fee on trades, you’re aware of how much it is and whether it applies toward your purchase or sale amount as well as withdrawal amounts.
Are there other fees?
Some exchanges may charge you to trade specific cryptocurrencies. Many don’t, but some do. If this is the case, ensure you’re not charged anything you don’t want to pay.
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