What is a crypto scanner?
The Crypto trading space is quite fragmented. There are several cryptocurrencies and exchanges, making it not just hard but impossible to monitor the prices, volumes, indicators for more than just one crypto manually. This problem is easily solved with a crypto scanner, allowing simple automation of the process, giving the user aggregated data and insights in real time that can improve their trading results and ultimate returns.
Statistica estimates that there are over 6000 cryptos in 2021, up from just a few in 2013. This makes it imperative for a crypto trader to identify good trading opportunities which require timely information from indicators. In this article, we’re introducing you to what a crypto scanner is, the benefits of using a crypto scanner, how a crypto scanner works, and how to choose the best crypto scanner.
What is a crypto scanner?
In short, a crypto scanner, aka cryptocurrency market scanner is a tool a savvy trader can use to identify desired opportunities in the crypto markets. With a crypto scanner, you are able to spot defined activities while also tracking the movements of different crypto assets market-wide.
Cryptocurrency market scanners are comprehensive tools that check information and allow its filtering. Once you define your selected criteria, you can then seek trends; these trends will enable you to set signals that will be the indicator that you want to execute various kinds of trade orders (buy or sell). With these set correctly, you are then able to increase your odds of achieving profits. The most basic of components that traders will use and track with a crypto scanner are price and volume; crypto scanners can also inform you of several other important metrics for decision making such as overbuys and oversells, a cryptos trade history, and many more.
An important attribute that a good crypto scanner will also incorporate into its functionality is “alerts.” These will notify you about any changes or movements to the crypto or overall market as they occur.
Benefits of using a crypto scanner
The fundamental role of a crypto market scanner is to make searching for suitable opportunities easier. Because cryptos are still a burgeoning industry, it is still rather fragmented; besides the thousands of cryptos and counting available, there are also several exchanges, both centralized and DEXes, to trade them.
Crypto scanners are more commonly used by technical traders, but not exclusively. Because of their intuitive ease of use, crypto scanners can be utilized by traders with any level of experience, and they can provide valuable information for decision-making. If they wish, users of a crypto scanner can set hundreds of data filtering combinations, for example, they can set filters in terms of volume, various technical analyses, defined candlesticks charts, or price volatility. The scanner works in real-time, scanning all of its markets but can be refined to just look at the markets the trader is registered on, and look at the data for all or a user selected group of the cryptocurrencies for those markets.
A crypto scanner takes just a fraction of a second to sift through the information on all of the markets and currencies. As a result, the trader obtains a real-time moving snapshot of the market and how the current information best fits their trading strategy.
Say a scanner uses 15 markets, and there are a total of 1250 different cryptocurrencies on those markets. Some will be multiple-listed, especially the top 100 market cap cryptos; these may show arbitrage situations where you can profit from trading two different exchanges. Others will have single listings with smaller volumes and more significant swings. A crypto scanner can also identify these types of movements for this strategy of trading.
How does a crypto scanner work?
Now with thousands of cryptocurrencies available to purchase and hundreds of exchanges to do so on, one can’t monitor the movements of one crypto, let alone several, without the right data analysis tools to simplify the process for you. Crypto market scanners function by quickly looking through the data of multiple exchanges followed and identifying various moving indicators like volume, crypto price, and momentum indicators like the Relative Strength Indicator (RSI) or other technical indicators that aid with trading.
By using a crypto scanner, you are able to :
- Easily identify coins with the greatest price and volume percentage changes for any time period or multiple periods. This knowledge allows a trader to jump in and ride waves of movement quickly.
- You can set a bid ask ratio filter, which shows a specified ratio between the bid and ask orders on level one. When this is set at a level two to three the user is notified of all cryptos where the best bid orders are between two and three times larger than the ask order. This can also be set to look at certain time periods like 1 or 5 minutes.
- The percent up or down indicator can identify cryptos that are on the move, showing how much a crypto has moved since yesterday’s trading. This way you can find what has high volitility and if it has gone down and losing volume it will likely pop back up with a good gain.
- With a one-hour negative candle, the filter looks at a 60-minute intraday candlestick chart seeing if the stock price has been moving down and for how long. The scanner can find only cryptos with a minimum of 3 consecutive down candles.
A crypto market scanner is undoubtedly an excellent way to save time, let you set notifications to inform you when a defined indicator changes into a zone you want.
How to choose the best crypto scanner?
With the fast-moving crypto market that has seen coins with unbelievable gains of over five million percent since inception, traders can use a crypto scanner to identify the gems among many useless stones. If you are a novice trader, the first few months of manually analyzing movements and buying and selling on a single exchange can be a struggle. The time you spend to understand the markets is invaluable but is slow to produce.
Finding the best scanner for you will depend on your needs, and this is where the time you take is worth it. Are you just trading cryptos? If so, you can use a scanner dedicated to cryptos, or if you are looking at other investments, some scanners look at stocks, futures, and foreign currencies; these can be good but may not have enough crypto information for you.
If you are focused solely on cryptos, you can find a crypto scanner that allows you to track hundreds of cryptocurrency prices with the particular filters and indicators you use most. Look for a scanner that has real-time data, not delayed data, as the whole goal of your scanner is to provide you with accurate information, not a shadow of the past. You will want to find an easy-to-use scanner with a few simple steps to get the information you desire. If the scanner is tied to an exchange, make sure that the fees you are paying and the structure it has are most suitable to your trading type. Fees can eat up your profits.
If you are trading on multiple exchanges, it helps to have a scanner that will monitor all of the wallets and provide you with useful information on your trading performance which you should regularly review to improve your trading decisions.
If the crypto market scanner offers you a trial period, take advantage of it. It is best to know what you are doing and if the scanner fits your needs well.
For those that want to use up-to-date news info, it also helps if your scanner incorporates news into it. The information enables you to get a better overview of the market and make better trading decisions.
A scanner that ticks all the boxes
Algory has been designed to be the best crypto scanner available. We have combed through the world of crypto market scanners and made sure that the product offered is top of its class. It is easy to use; it takes just six steps to customize the scanner, and there are over 100 different filters and alerts you can choose from and set. Algory also has built-in libraries of filters to fit almost any trading strategy, and this allows you to add to your knowledge, refining and improving your current methods.
Algory uses data from 15 different exchanges so you can see movement across the market as it happens and then take advantage of this knowledge as soon as possible. To add to your trade decision-making, Algory adds a news scanner feature that is easy to use and provides valuable information. All of this is in a customizable workspace so that no matter what your trading style and preferences are, you can get it with Algory
We are offering a free trial so that you can see all of the benefits that Algory provides for your trading. You can test both the crypto and news scanners to see just how useful they are.
Summary
A crypto market scanner will help you save time and make better trading decisions. It is no longer required to sift through all of the data when you can quickly identify market movements and make trades with the most up-to-date info, both technical and news. With the right crypto scanner, you can improve your profit potential and be on the road to crypto wealth.