A specialized tool designed to help people in sorting through investment opportunities in the crypto space is referred to as a cryptocurrency screener. Using a cryptocurrency screener means setting specific parameters that will be used for narrowing down and sorting through the potential investment opportunities. There are different categories that can be used for running the search, which include volatility, price, average daily trading volume, total market capitalization, specific charting formations and patterns, and percentage price change within the last 24 hours. Once you specify your search criteria, the cryptocurrency screener filters through thousands of crypto projects and shows you the ones that match your set criteria.
This can be helpful in saving a great deal of effort and time that would be otherwise spent looking for investment opportunities. Moreover, using the right crypto screener can also enhance your trading because it helps you narrow down solid crypto investment opportunities. Some of the benefits of using a cryptocurrency screener are:
They help you identify new and profitable crypto projects
It will not take anyone long to discover that there are thousands of crypto coins, projects, and tokens that are available on major exchanges. Likewise, new projects are also regularly introduced in the market, which means manually sorting through them is not practical or possible for anyone in the long run. Using a cryptocurrency screener can help you in narrowing down the investment opportunities based on entry points and specific factors. For instance, if you trade regularly, you may want to see what projects are experiencing unusual volatility for planning where and how to invest and make returns.
They can instantly identify charting patterns
Along with the types of volatility and standard price screeners, you can also use these screeners for instantly identifying tokens and coins that are forming charting patterns, which may indicate an entry position. For instance, you may wish to consider investment opportunities, which have an SMA that’s beginning to trend upwards or are showing a MACD crossover. If you are still trying to master the art of charting and considering AI-powered assistance, you can find a comprehensive crypto screener that supports charting identification. This can be a time-efficient way of identifying the patterns coordinating with your trading strategy.
They can provide a holistic view of the market
There are some crypto screeners, such as Yahoo! Finance, which can offer a heatmap indicating how the overall crypto market is doing in a single glance. Some crypto screeners even give you the option of customizing your tiles for showing you the performance of your largest holdings in the last 24 hours. Frequent crypto investors will find this quite beneficial because having instant oversight of the crypto space can help you decide which tokens and coins are undervalued as well as the ideal time for entering the market.
How does a crypto screener work?
Crypto screeners enable people to identify crypto trading opportunities through the use of AI-powered technology. After you have specified what kind of tokens and coins you want to view, the crypto screener searches through the market and shows you the crypto pairs that match your criteria. This saves you from having to endlessly scroll through pages of thousands of unique tokens and coins for finding your next investment or trading opportunity.
The way you use your crypto screener will depend on your crypto trading strategy and the parameters offered to you by the screener you decide to use. For instance, long-term investors use screeners for narrowing down investment opportunities by total market capitalization or volume. In contrast, short-term investors prefer to search for opportunities based on exchanges offering the lowest fees and which show unusual price activity or volume.
It is recommended that you cultivate your trading strategy before you look for an ideal crypto screener for your needs. Even the best screeners don’t already include the scanning criteria that should be used for identifying investment opportunities. Knowing what you want before you begin your search and taking advantage of demo accounts can ensure that you don’t have to pay for a screener that doesn’t suit your needs. It is a good idea to monitor the current market and use a crypto charting platform before you choose a crypto screener.