Crypto Screener: Everything to Know
By Beluga Research November 6, 2023
- A crypto screener is a tool that gathers all the available information about a crypto asset, to help investors determine what trades they want to make
- These are powerful analytical tools that filter cryptocurrencies based on various parameters
- Crypto screeners offer customizable filters, technical indicators, fundamental metrics, real-time data, portfolio management features, research and analysis resources
- The advantages of crypto screeners include efficient analysis, customizable filters, quick identification of trends, comparative analysis, risk management tools and real-time data,
A crypto screener is a tool that gathers all the available information about a crypto asset, to help investors determine what trades they want to make. Some crypto screeners are free, but more advanced features and screeners cost. A user should select the crypto screener that fits their level of expertise.
Some crypto screeners help an investor collect and analyze news well. Others focus on specific types of coins, like altcoins. A crypto screener can provide information about the technology behind a token as well as how the token is faring in the marketplace. Crypto screeners may also provide educational materials like trading courses to help investors determine their goals and figure out their next steps.
A Brief History
In the early days of cryptocurrencies, the market was small and the number of digital assets was limited. As the crypto ecosystem expanded, so did the number of cryptocurrencies. Investors had a hard time keeping track of all of the assets available.
Developers and enthusiasts addressed this by creating tools to help users navigate the growing landscape. This led to the emergence of crypto screeners. Crypto screeners have become popular with investors who seek to craft a systematic approach. Investors have a goal of identifying and investing in tokens that exhibit desirable characteristics, such as liquidity.
Crypto Screener: Everything to Know
Customizable Filters: A crypto screener allows an investor to apply customizable filters. Users can define specific criteria based on their investment strategy and willingness to suffer a loss. For example, investors can filter cryptocurrencies based on market capitalization, to focus on established projects. They can also set filters based on trading volume to target liquid assets with ample trading opportunities.
Technical Indicators: Crypto screeners often integrate technical indicators to provide insights into price trends and market sentiment. These indicators include moving averages, relative strength index (RSI) and Bollinger Bands. A Bollinger Band is a statistical chart showing the price and volatility of a specific token over time. An investor analyzes these indicators to better understand market dynamics and make informed decisions.
Fundamental Metrics: Crypto screeners may incorporate fundamental metrics to evaluate the value and potential of a token. The metrics include project team, partnerships, use cases and community engagement. Investors can assess the long-term viability and growth potential of a token by considering these fundamental aspects of a coin.
Real-Time Data: Timeliness is crucial. Crypto screeners provide real-time data on price movements, trading volumes and relevant metrics. Up-to-date information enables investors to react quickly to market changes.
Portfolio Management: Advanced crypto screeners offer portfolio management features. Users can track and manage their cryptocurrency holdings in a single dashboard. They can monitor portfolio performance, set price alerts and simulate trades to test different strategies. This comprehensive view empowers users to make data-driven decisions and maximize the potential of their initial investment.
Research and Analysis: Crypto screeners often provide access to in-depth research and analysis on individual cryptocurrencies. This includes project descriptions, whitepapers, news updates and expert opinions. Accessing these resources within a screener platform allows an investor to conduct thorough due diligence. Then the investor can develop a well-rounded understanding of the cryptocurrencies they are considering.
- Choose a reliable platform. Each platform has unique features. The user should choose the platform that meets their needs.
- Become familiar with the platform's interface and tools. Most crypto screeners allow filtering based on criteria like market capitalization, trading volume and price. The filters help narrow down the cryptocurrency market.
- Generate a list of cryptocurrencies to match set criteria. The list includes details like symbol, price, market capitalization, trading volume and percentage change. A trader should analyze this information to understand the performance and potential of different cryptocurrencies.
Allow viewing and comparing multiple cryptocurrencies side by side. This helps a user assess strengths and weaknesses and make informed decisions. An investor should consider metrics like market capitalization, trading volume and price patterns to identify trends and investment opportunities.
Offer alerts and notifications. A user can customize alerts for specific criteria like price levels or percentage changes. They can stay updated on market movements and potential opportunities in real-time.
Provide advanced charting tools and technical indicators. The tools in a crypto screener enable in-depth technical analysis and identification of patterns or trends. Use techniques like moving averages, volume indicators and oscillators to make informed decisions based on historical price data and market trends. An oscillator is a tool that determines the high and low prices of a token and creates a trend indicator that moves between the two extremes.
- Efficient Analysis: A crypto screener allows users to quickly analyze multiple cryptocurrencies at the same time. This saves an investor time and effort when compared to researching each asset individually.
- Customizable Filters: A crypto screener allows a user to apply customizable filters. Users can set specific criteria such as market capitalization, trading volume and price to focus on cryptocurrencies that meet their desired parameters.
- Quick Identification of Trends: A crypto screener helps a user spot emerging trends in the cryptocurrency market. Monitoring factors like price movements, trading volume and market sentiment allows traders to gain insights into potential opportunities and market shifts.
- Comparative Analysis: Crypto screeners facilitate comparative analysis. They help users compare multiple cryptocurrencies side by side. This feature provides a comprehensive view of different assets. It helps users make informed decisions based on relative performance and other relevant metrics.
- Risk Management: A crypto screener assists in risk management by providing tools to assess the risk associated with various cryptocurrencies. Users can set filters to identify assets with lower volatility or higher market stability. This action reduces the potential for unexpected losses.
- Real-time Data: Most crypto screeners provide real-time data. They ensure users have access to the most up-to-date information. The real-time data enables traders to make timely decisions based on current market conditions and news.
- Overwhelming Amount of Information: The abundance of information provided by a crypto screener can be overwhelming for inexperienced users. If a user is new to the crypto ecosystem, they will lack a proper understanding of the metrics and indicators involved. Education and outreach can help address this issue.
- Reliance on Historical Data: Crypto screeners provide historical data. They cannot predict future market movements with certainty. Traders must exercise caution and consider other factors before making investment decisions solely based on historical data. This fact should be explained in educational materials.
- Technical Expertise Required: Effective use of a crypto screener usually requires technical expertise. Users should have a basic understanding of the terminology, metrics and indicators in the cryptocurrency market to use the screener well.
- Potential for False Signals: Crypto screeners rely on predefined filters and indicators. These can generate false signals. Traders should exercise caution and conduct further research before acting solely on the information provided by a screener.
- Limited Scope: Crypto screeners may not cover all cryptocurrencies available in the market. Some screeners cover a limited selection of assets. This means they cannot see or get information about promising projects and newly launched cryptocurrencies.
- Cost: There are free crypto screeners available. Advanced features and comprehensive screeners tend to come with a cost. Users should consider their budget and requirements before investing in premium crypto screeners and add-ons.