Cryptocurrency trading has evolved over time, leading to a large and saturated market; this means that there are hundreds of crypto coins that one can invest in. When a beginner attempts to enter the market and invest in cryptocurrency, they are met with hundreds of options, making it difficult to choose.
That’s where crypto screeners come in. These tools make it easier to sort out multiple coins and choose one that fits your investment strategy. However, most people are unsure how to take advantage of these tools, causing them to get confused or choose the wrong ones. Keep on reading to understand how to screen crypto coins.
What Is a Crypto Screener?
A crypto screener is a tool investors can use to filter cryptocurrencies based on particular criteria. It is a more efficient way to search a wide range of digital currencies and choose the coins that fit your trading strategy.
A good cryptocurrency screener should have a comprehensive database of a wide range of coins, have real-time information for accurate analysis, and feature sortable metrics. It should allow you to send alerts and notifications, as well as create watchlists for selected cryptocurrencies. TradingView is one of the most widely used crypto tools, especially with its screener feature.
Top Tips for Screening Crypto Coins
If you’re considering using a crypto screener, there are some tips to remember. These can help you take advantage of the screening tool. Let’s take a closer look.
Combine Multiple Search Parameters
There are different search parameters that you can set up with a crypto screener. Some of the most frequently used parameters are market capitalization, which is the total value of all cryptocurrency; the volume, which is the amount being bought and sold; technical patterns; and technical analysis. Beginners often end up using a single parameter to find cryptocurrencies, but it’s better to use more than one. Based on your strategy, you can set multiple search parameters and use this to find particular coins.
Leverage Screeners for Risk Management
Another tip is to focus on risk management when using a cryptocurrency screener. Cryptocurrency trading comes with a lot of risk and volatility, making it intimidating for many traders. With a screener, you can use metrics like volatility indicators or relative strength index levels to manage risk. You can set a threshold for the indicator to flag potential risks, allowing you to protect your investments.
Check Regular Updates and Opportunities
You can receive regular updates with a cryptocurrency screener. Their criteria, prices, and information will also be updated regularly. You should use the screener to find out how the overall market is doing at a glance. In addition, you can find new investment opportunities and any new or emerging crypto coins in the market by using a regularly updated screener.
Do Your Own Research
It might be tempting to take whatever the crypto screener gives you and start investing. But you should do your research on the coins that are recommended to you. The screener only works by filtering out coins based on specific criteria. After that, you should carry out research and receive expert advice to know more about the coin before making your investment.
Set Notifications for Trading Signals
An important aspect of investing is staying updated with the latest information. That’s why you should take advantage of the alerts and notifications on most crypto screeners. You should set notifications alerting you when your selected crypto coins have met predefined conditions. For instance, if the coins on your watchlist meet price thresholds or volume spikes, you get an alert.
Use the Custom Options
Most crypto screeners come with a wide range of custom options. A helpful tip is to use these custom features to track the performance of your assets. You can set up custom filters to monitor the price action of your crypto coins. Don’t hesitate to customize the platform extensively. All these custom options allow you to use the screener for portfolio management, allowing you to identify the assets that are underperforming or outperforming.
Set Your Price Range
To take advantage of the crypto screener when choosing a coin to invest in, you should set the price range. These screeners often come with price range filters, so you should use these to choose coins that meet your needs. Establish whether you want lower-priced coins with high growth potential or more expensive coins with stability. Keep in mind that the price filters only provide insights based on data, so you should still conduct research before making an investment.
Use Screeners In Your Everyday Investments
If you’re wondering how to pick a crypto coin, a screener is an effective tool if you know how to use it. It’s not only about selecting a filter and blindly investing in all the coins that are listed. A crypto screener is only a tool, so you should research and refine your search criteria by combining different parameters. Once you have a better understanding of the parameters, you can turn your focus on risk management and look for new investment opportunities.
[thrive_leads id="228374"]
