How to read Crypto charts?

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Like technical charts that assist traders to pick equities and commodities, crypto charts are used to make better investment decisions while dealing with cryptos.

Crypto charts are graphical representations of historical price, volumes, and time intervals. The charts form patterns based on the past price movements of the digital currency and are used to spot investment opportunities. To understand how to read a crypto chart, let's discuss a Japanese Candlestick chart.

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A Japanese Candlestick is among the frequently used charts by crypto traders. To interpret the image above, you should be aware that a candle is represented in red when the closing price is lower than the starting price during a specified time frame. This means the price of the asset declined. In contrast, the green candle shows that the closing price was greater than the starting price. This indicates that the asset’s price rose. These candlestick charts form several patterns. Depending on the shape, colour and size of the candlestick, traders take positions or make changes in their trading strategies.

Bullish and Bearish Patterns
Patterns formed on the charts fall into two categories: Bullish Reversal Patterns and Bearish Reversal Patterns. For instance, a Hammer Candle Pattern is a bullish reversal pattern which tells us that a stock is nearing bottom in a downtrend. The body of the candle is short which represents the head of the hammer while the longer wick is a sign that sellers are driving prices low during a trading session, which would be followed by strong buying pressure to end the session on a higher dose. The upward trend must be confirmed by watching it closely for a couple of days and the reversal should also be validated by a rise in trading volume.

Shooting Star Candle Pattern
A shooting star candle pattern is a bearish reversal pattern that occurs at the height of a rally before reversing down. This pattern consists of a candle with a long upper wick and a small body, as can be seen in the image above. A shooting star candle pattern indicates drive-by buyers which are met by resistance.

Popular patterns for technical analysis
Head and Shoulders

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Head and shoulders patterns are reversal patterns that may show up at the peak or bottom of an ongoing trend. If such a pattern shows up near the bottom of a trend, it's called an inverted head and shoulders pattern. These patterns show a tug of war between buyers and sellers, with one side finally coming on top, resulting in a greater pushback or pullback.

Wedges

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The pattern that is formed in the above image is a wedge. They appear when a trend starts to settle down and finally results in a breakout. Markets often move sideways to wedge back and forth until they move into a firm direction.

Support and Resistance
Understanding support and resistance are one of the most crucial parts of reading a crypto chart. Support levels in charts refer to a price level that the asset does not fall below for a fixed period. In contrast, resistance level refers to the price at which the asset is not expected to rise any higher. This is the level at which the sellers outnumber buyers in the market for a particular digital asset. Experts are known to suggest support and resistance levels to assist traders while taking positions in crypto.

Conclusion
Understanding the patterns would help traders make an informed decision. However, trading in crypto requires an efficient trading platform. WazirX is one such platform where you can not only take positions but also effortlessly spot these patterns and indicators every day.

https://wazirx.com/blog/how-to-read-crypto-charts/
https://wazirx.com/exchange/WRX-INR

 

How to buy Shiba Inu in India

Last week, the cryptocurrency with nearly $23 billion in market cap, logged an all-time high. As per reports, the Dogecoin-killer Shiba Inu, is currently valued at ₹ 0.004753 and has become the 11th-biggest cryptocurrency by market value. Shiba Inu works the same way other cryptocurrencies do but is designed differently. Unlike Bitcoin, which is limited in number, Shiba Inu is not and its total circulation supply is one quadrillion.

The next big token?
Cryptocurrencies have been hitting the headlines for quite some time now. With more and more innovation in the space, the prospect of cryptocurrencies entering the mainstream has dramatically increased. Although some countries remain skeptical about digital currencies, cryptocurrencies have found backers in popular entrepreneurs such as Elon Musk.
Now that the values of Bitcoin and Ethereum have risen sharply, it might not be as easy to find an entry point for trade in such coins as it might be with newer and emerging cryptocurrencies such as Shiba Inu. Strong interest in trading in Shiba Inu may be a testament of the same. Another reason Shiba Inu has elicited attention is due to its decentralised exchange ShibaSwap which facilitates NFT (non-fungible token) trade. The exchange functions as a peer-to-peer marketplace for cryptocurrency buyers and sellers.

How to buy Shiba Inu in India?
India has over a dozen cryptocurrency exchanges which offer a seamless way of buying the cryptocurrency of your choice. Among the safest is WazirX which provides its users numbers of choices to trade in.
The first step involves creating an account on WazirX . You can also go to its website click 'Sign Up'. You will receive a verification code after submitting your email. The next step involves completing your KYC details and then uploading them on the website or the app. Following the completion of this step you will be required to enable a two-factor authentication from settings.

 

Next you can click on the deposit INR icon and select the method that you wish to use in order to transfer funds from your account to your cryptocurrency wallet on WazirX. As soon as your account is set up, you can buy or sell SHIB which will begin to reflect in your cryptocurrency wallet.

The process of setting up your account would take no more than a few minutes. However, the KYC verification by WazirX might take 24 to 48 hours.

Legalities of buying cryptocurrencies in India
The value of cryptocurrencies has skyrocketed over the last few years despite it being illegal in several countries. However, it is legal to trade and invest in cryptocurrencies in India, including Shiba Inu. Moreover, news reports have said that the Indian government may introduce a legal framework to govern trading in cryptocurrencies in the next Budget.
Fairly positive news flow with respect to cryptocurrency trading in India has given a fresh impetus to the cryptocurrency market. As per news reports, nearly 15 to 20 million Indians have invested in one cryptocurrency or the other, making India one of the largest cryptocurrency markets in the world.
A positive approach by the authorities in the coming months may well take the prices of the prevailing digital currencies even higher. Among the ones that might benefit could be Shiba Inu which is trading at a lower rate than Bitcoin and Dogecoin.
Reports suggest that the government is expected to introduce Cryptocurrency and Regulation of Official Digital Currency Bill next year. This is in contrast with the government’s earlier stance to criminalise the trading and holding of cryptocurrency assets.

Safety aspects while trading in Shiba Inu on WazirX
There are several concerns regarding how Shiba Inu or other cryptocurrency assets are stored after being purchased on a cryptocurrency platform. But exchanges such as WazirX have gained currency among cryptocurrency enthusiasts for its blockchain wallets which are widely considered to be secure as cryptographically signed.
A blockchain wallet works in the similar way a bank account works. Another reason why trading in Shiba Inu with WazirX is smooth and effortless is the fact that WazirX offers its users to buy a fraction of a crypto at a min price. With Rs 100 you can purchase a portion of a crypto at WazirX and also analyse your investment through a range of technical charts that are there on its app.

 

Sources:
https://www.livemint.com/market/cryptocurrency/shiba-inu-s-all-time-high-breach-makes-it-more-valuable-than-some-indian-firms-11635334321982.html
https://www.cnbctv18.com/cryptocurrency/how-to-buy-shiba-inu-11248932
https://www.fortuneindia.com/enterprise/what-is-shiba-inu-the-crypto-trading-more-than-bitcoin-in-india/106123
https://gadgets.ndtv.com/finance/shiba-inu-price-in-india-today-inr

courtesy : https://www.moneycontrol.com/msite/wazirx-cryptocontrol-articles/how-to-buy-shiba-inu-in-india/