Cryptocurrency charting platforms are drawing boards where the thinking and planning takes place. In short, this looks approximately like this: you draw various horizontal and diagonal lines on a chart. If you do this properly, you make money.
There is obviously more to the whole thing, but this is where you start. You start by drawing lines on your computer screen. To do this you need a charting platform, probably the most important tool in cryptocurrency trading. So, what are the best cryptocurrency charting platforms – and what exactly are they?
What are charting platforms?
Cryptocurrency charting platforms are software tools that offer graphic representations of how the price of a certain cryptocurrency has been moving on exchanges. They let you monitor price changes as well as the volume of exchanged coins. Usually they also offer an assortment of technical indicators – advanced tools that help traders predict market trends.
They are used for performing real time technical analysis on a certain cryptocurrency. However, you can also use them for placing orders and even tracking your portfolio.
Why do you need them
The answer to this is pretty obvious. You need cryptocurrency charting platforms to check out the history of a certain cryptocurrency’s price movements. This way you can predict how it MAY behave in the future. In fact, trading without using charts is in most cases just gambling.
By using charts you can see where most people will probably start buying it and where they will be selling it. Thus you won’t be buying a certain coin just before its price start falling. You also won’t be panic-selling them just before it’s price will start to rise. However, to do this you actually need more than just drawing horizontal and diagonal lines on the chart. You also need to analyse and understand various indicators like the moving average, RSI and MACD. Charting platforms compute them from data about past price and volume movements.
Which cryptocurrency charting platforms to use?
Some cryptocurrency exchanges (here is list of the ones we recommend to new traders) already offer basic charting tools. However, when you trade on different exchanges with different interfaces it can get pretty confusing. Furthermore, most of them don’t offer more than a few indicators or any of the other advanced technical analysis tools.
Cryptocurrency charting platforms usually run in a web browser. A very basic one is offered by a great website called Bitscreener. However, this site is primarily a comprehensive list of most of the coins on the market. Its charting platform comes in handy when you’re flicking through various coins and looking for trading setups but is otherwise rather lacking. It is also a bit buggy.
So, what are the advanced crypto charting platforms suggested and used by Crypto Trade Academy?
The first platform I would suggest is called Tradingview. It is reliable, user friendly and easy to use even for beginners. Tradingview has got a huge quantity of charting tools and indicators. It also enables you to trade through it, but only on a small number of exchanges.
It’s free version is more than suitable even for advanced traders. However, adds are gonna keep popping up unless you buy the pro version and this may get very annoying.
A bit more problematic is the fact that even if you buy Tradingview they won’t have data for some cryptocurrencies that you might be interested in. You can do technical analysis for all the major coins on big exchanges, but you won’t be able to check what’s going on with more exotic coins on smaller exchanges.
The second charting platform we use and recommend is called Coinigy. No other platform that has bigger assortment of cryptocurrencies and exchanges than Coinigy. You can find pretty much everything from the crypto world here. Even better, this platform enables you to connect with many of these exchanges and trade on them directly through Coinigy’s interface. It also offers a great way to keep track of your portfolio.
However, Coinigy has one fatal flaw. Even though they use the same charting tools as Tradingview, theirs aren’t working as smoothly as on Tradingview. For instance trend lines tend to move when you change time frame. Trust me, this is REALLY annoying.
Coinigy has a 30 days free of charge trial, after which a monthly fee applies.
How to use cryptocurrency charting platforms?
Platforms are only as good as their user. If you want to know HOW to perform technical analysis using cryptocurrency charting platforms, the Crypto Trading Academy video course is the way forward!