If you are new to trading cryptocurrency, you might be a bit overwhelmed. This is totally understandable. Many people that are trading cryptocurrency are first-time traders. What we’re trying to say is: you’re not alone. There’s a lot to know when it comes to trading crypto. One of the most common trading platforms that new traders use is Binance.
Binance is sleek, modern, and easy to use. It is the preferred exchange for many new traders. However, new users can quickly find themselves feeling overwhelmed with its interface. Don’t worry–we’ll walk you through how to read Binance charts. We know there’s a lot to look at, and that’s why we’re going to break it down in the simplest terms possible. Let’s get started!
Types of Trading Views
One of the great things about Binance is that it offers several different trading interfaces. This allows it to be the preferred exchange for many different types of traders and investors. They offer a simple exchange, classic design, advanced view, margin trading, and a few other advanced types. For now, we are going to cover the simple, classic, and advanced interfaces. Margin trading can be a very profitable venture, but it is also more dangerous. Beginner traders should avoid it until they are comfortable with normal trading and are confident in their ability to conduct transactions using the Binance trading interface.
The first step is to sign into Binance and hover your mouse over “Trade”. This will reveal a drop-down menu, from which you can select your preferred way to trade. See below for an example:
Basic Binance Trading
If you want to conduct a trade in the easiest way possible on Binance, then you are looking for the Basic option. Click the Basic option in the Trade dropdown. This will bring you to a straightforward screen.
On this screen, you will be able to choose the asset that you want to sell and the asset that you want to buy. When finished, simply click “Preview Conversion” and finalize the conversion. This will conduct a sale of the asset that you are converting from and a purchase of the asset that you are converting to. This is an easy way to trade on Binance in mere seconds. It is also the method that comes with the least amount of risk.
How to Read Classic Binance Charts
If you are just starting out, you might be interested in the classic trading interface that Binance has to offer. Here is what it looks like:
As you can see, this chart consists of 1-day candlesticks and is pretty easy to read against a black background. Along the bottom, you can see that there are bars that indicate the volume for each hour. Green bars represent high buying volume, and red bars represent high selling volume.
You’ll also notice three lines that are colored differently. These are indicators known as Moving Averages. They measure the moving average over time. The violet line represents the 7-Day Moving Average. This measures the average candle price over the last 7 days. In the red is the 25-Day Moving Average and in the Green is the 99-Day Moving Average. Many traders use these indicators on a daily basis.
How to Read Advanced Binance Charts
If you are getting the hang of trading pretty easily and you want some more features, you might be interested in the Advanced Binance charts. Simply hover over the “Trade” button and select Advanced.
As you can see, the chart itself looks much the same. There are candlesticks, volume bars, and moving average indicators. The only notable difference on the advanced chart is the trading interface. The interace is now off to the right side and offers more options. If you find this more suitable to serious trading efforts, you should feel free to use it.
Reading Candlesticks on Binance
If you want to be able to read charts on Binance, then you need to be very familiar with the idea of candlesticks. When you look at a chart, candlesticks are the bars that you see. Sometimes they are green, other times they are red. They will sometimes have wicks sticking out of the top or bottom of the candlestick.
Each candlestick represents a certain period of time. This can be any timeframe, such as 1 minute, all the way up to 1 month or even 1 year. Most traders look at 1-hour, 4-hour, and 1-day candlesticks. Those that day-trade and conduct dozens of transactions a day may use 1-minute, 3-minute, and 5-minute candlesticks. The candlesticks that you use will depend on your personal trading style. However, it’s important that you know what a candlestick represents.
Is Binance the Best?
If you’re just getting started with trading cryptocurrency, you may be wondering if Binance is the best way to trade. Though there are dozens of crypto exchanges out there available to use, thousands of traders still choose Binance. The reason is that Binance is a valuable member of the cryptocurrency community and very engaged throughout the community. In addition, they offer good rates, plenty of trading markets, and an easy interface.
For those reasons and more, many consider Binance to be the best option for beginner cryptocurrency investors.
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