Can someone explain to me the difference between Linear and Logarithmic scale charts?

logarithmic graphs are graphs that increase by magnitudes instead of a linear number system such as 0,1,2,3,4, a logarithmic scale would be 0,2.5,5,10,20, etc.

a logarithm is the inverse of an exponential

so a chart with exponential growth will appear more linear if you apply log to the exponentially growing axis

if this is too confusing you will probably lose all of your money at some point

Hes right op if you dont understand, best to diversify amongst top market caps and forget about it for 5 years

Linear = 1,2,3,4,5....etc

Log - 10,100,1000,10000 ....etc

yeah i think ill pick bitconnect and tether

% gain on log scale is the same distance vertically

100 -> 200 is the same vertical distance as from 1 ->2

You could've googled this and learnt it in about 5 minutes, OP.

I see, but what's the point of that?
Meh, I've turned €500 into €45K so whatever.

im not a TA guy so i dont have an answer specific to crypto graphs, but they are two dif ways of showing the same set of data. a lot of trends appear when you plot data on log charts as opposed to a linear charts though

If the rate of change is constant, the accumulation will be linear. For example, if you slowly will your bath tab with 1 liter of water per minute, then after x minutes, you have x liters of waters in in.

If, instead, the rate of change is proportional to the current accumulation, then things speed up exponentially. For example, if the growth of mold is initially slow, but as you have more mold, new more mold grows even quicker, then the amount of mold explodes. If the curve is for example 2^x, then for x=1 you get 2, for x=2 you get 4, for x=3 you get 8, for x=4 you get 16, etc.

Price in a growing market will tend to grow exponentially. On a log curve, exponential grows is shown linearly.

In other words, if you look at the log curve and it still bends upwards (i.e. faster than linear), then this means the growth is even steeper than exponential.

Btw. let me shill my youtube channel, I might cover such things in the future

youtu.be/h-sZ4kgln40

logarithmic graphs are useful when you have vastly different scales of behavior you are looking at. For instance, a linear scale of bitcoin for the past few years would just be a giant peak near the end of last year and everything else would be virtually invisible. With a logarithmic scale you can see more of the trends over that whole time scale

look at the cmc marketcap of bitcoin

the spike from 1b to 10bil is a tiny blip on the graph, despite it being 10x growth, whereas on log graph it's more emphasized

>I see, but what's the point of that?
Because a coin going from $1 to $2 is equally significant as going from $50 to $100. On the log scale those two events will look the same, on the linear scale, the $1 to $2 wouldn't even be visible because of how large the graph would need to be to show the $100 ATH.

Linear shows the price normally, Log shows the price as a percentage, i.e 1 to 2 would be the same distance as 10 to 20.

reddit can

>bull market
Use log scale. Your candles will be higher so you will close bigger profits.
>bear market
Use linear scale. This will flatten the chart so your dips won't hurt that much.

The point is log is representative of the current price. Imagine the market cap is 200 million and then shoots up to 300 million vs the market cap being 1 billion and shooting to 1.1 billion. On a linear scale that increase is equivalent, but on a log scale the former increase is waay greater. That makes more real world sense because it is a market increase of 50% vs 10%

A lot of good explanations of why to use log plots in here. Just to note, it's easy to see this from how logarithms behave when you multiply something in their argument due to the property:
log(a*b) = log(a)+log(b).

So as many people have pointed out if you 2x something you will see the same increment/jump in the price in a log chart (when something doubles it goes up by log(2))

Mate they teach your logarithms in highschool.

HOLY SHIT are you retarded? Learn to math

lol at these faggots trying to knock OP for not knowing the difference. I would literally bet an entire bitcoin over half of you have no fucking clue.