May 5, 2019 23:30 UTC
May 5, 2019 at 23:30 UTC
How To Read Crypto Statistics?
If you are new to the world of cryptocurrency trading, you may be a little lost as to how you should go about analysing the market and making investment decisions. You may read hundreds of expert analyses and informed articles but until and unless you manage to read and understand data yourself. Have you ever wondered about how to read crypto statistics? If you have, allow us to help you out.
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To begin with, you must first get onto some website such as Coinmarketcap or Coingecko. Once you have gone there, you must try to read the data given to understand what they mean and what they say about the health of the market.
Let us have a look at the elements one by one. Please note that our explanations are in reference to the layout of Coinmarketcap, which can serve as a handy guide to other websites as well.
The first column is quite self-explanatory in nature as it simply tells you what the current price of a certain cryptocurrency is, for how many dollars it is being traded at any given moment. For example, at the time of writing, the price of Bitcoin is $5,816.49.
The change percentage for a crypto is indicated either in the colour green or red.
The percentage value is in a particular colour to help us understand whether a certain crypto has been suffering losses or seeing gains.
A green percentage indicates a price rise by that value and a red percentage indicates the vice versa
This refers to the amount of crypto being bought and sold in the market at a given moment. Crypto volume is a very important metric to consider when you are reading crypto stats.
The rankings of cryptocurrencies are usually ascertained on the basis of this. This represents the product of the price of a cryptocurrency multiplied by the crypto supply. This represents the worth of the total crypto out in the market at any given moment.
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This particular metric tells us exactly how many units of a given crypto is out in the market at that time.
This helps us determine the circulating availability of the crypto we can ideally use. If a crypto has a supply hard cap, then its circulating supply will automatically be lower than the hard cap.
7 Day Graph
Finally, a 7 Day Graph helps users understand how the price of a certain crypto has been behaving over the past seven days. This gives users an insight into trends and patterns in a crypto’s behaviour.
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