Amid unfavorable regulatory climate, decentralized finance (DeFi) is continuing to shake up the world of digital money by offering an alternative system for investments and settlements. DeFi cuts out middlemen, such as banks and other institutions, and allows users to enjoy freedom in managing their funds without central oversight, transfer delays, and third parties interfering with transactions. DeFi achieves it through smart contracts – blockchain-based self-executing agreements that automate settlements without compromising security.
Over time, DeFi has evolved into a vast ecosystem teeming with financial solutions, investment platforms, and analytics tools. In many regards, the sector matches and even exceeds the mainstream finance offer, providing opportunities to make money and operate funds in a decentralized way. You can borrow or lend cryptocurrencies, trade them on decentralized exchanges (DEXs), earn interest on your holdings, and even participate in decentralized insurance.
Overall, DeFi boasts transparency, accessibility, and potentially lower fees, but the opportunities it offers come with caveats you should consider. The space is complex, crypto markets are volatile, regulations are still being ironed out, and scams exist. Assets traded on DEX platforms are frequently low-quality projects or pump-and-dump schemes. You must be careful and thoroughly research before investing your money in any of these coins.
Apart from cutting through crypto theory 101, you may want to consider becoming a studious user of crypto analytics tools that will help you get familiar with the inner workings of the decentralized markets. One of the most notable platforms for DeFi real-time data is DEX Screener.
What is DEX Screener?
DEX Screener is a data platform that provides comprehensive analytics tools for DEX users. It allows investors to monitor and explore data from multiple decentralized exchanges and underlying chains. DEX Screener provides real-time information on key indicators such as token prices, liquidity, market capitalization, and transaction volumes. The platform supports over 60 chains, hundreds of DEXs, and hundreds of thousands of crypto pairs, giving users a broad perspective on the DeFi landscape.
What are DEX Screener's key features?
DEX Screener offers a suite of functionalities designed to help users make informed decisions in the decentralized space and profit from investments in the assets of their choice. Here's a brief review of the platform's key features.
Token price tracking
DEX Screener provides real-time price data for tokens across various decentralized exchanges, allowing users to monitor price movements and historical charts and spot potential trends – so that they can make buys before a given crypto starts off to the moon or make sells before it comes tumbling down.
Liquidity metrics
Liquidity is crucial for trading. DEX Screener displays liquidity information, including liquidity pool sizes, trading volumes, and liquidity provider fees, helping users assess the depth of a market.
Market cap
DEX Screener calculates market capitalization based on token prices and circulating supply and informs you about different coins' market cap.
Advanced filters
DEX Screener allows users to customize their search by applying various filters. You can filter data by chain, token type, volume, and more to find specific tokens or liquidity pools.
Customizable watchlists and alerts
DEX Screener allows you to create personalized watchlists and track specific cryptocurrencies you're interested in. Additionally, you can set unlimited price alerts to be notified when a token reaches a certain price point, helping you capitalize on potential opportunities or minimize losses.
Multicharts
Multicharts let you compare multiple tokens side-by-side to better identify and capitalize on trends. DEX Screener gives you up to 16 different slots for displaying tokens simultaneously. This feature lets you easily visualize price movements and potential correlations between different cryptocurrencies.
New pairs
New Pair explorer helps you discover recently added trading pairs on various DEX platforms. You can analyze real-time charts for new trading pairs, check historical data, liquidity details, top traders, holders, etc.
Portfolio tracking
With DEX Screener analytics tools, you can manage your crypto portfolio by adding tokens to your watchlist. DEX Screener helps you track your investments and monitor their performance.
Trending score
DEX Screener assigns a "Trending Score" to every token on its platform. It's a snapshot of a token's current market activity that considers various factors that might indicate a coin's potential for gaining traction, creating investment opportunities.
How to use DEX Screener's analytics tools?
Using DEX Screener doesn't require providing personal details or even setting up an account. However, the platform allows users to sign in with Google, Apple or by connecting wallets, should they want to synchronize their settings, lists, and alerts across various devices.
Apart from that, the DEX Screener is available unrestricted through its website and apps (for Android and iOS). The platform prioritizes free and open access, making its features accessible to all crypto traders interested in exploring DeFi through this invaluable resource.
DEX Screener is a powerful and easy-to-use analytics platform that provides seasoned traders with many capabilities. Depending on your advancement level and investment strategy, you can use the app in multiple ways, adjusting its settings and customizing insights into on-chain trades and other metrics.
Here are some basic tips for using DEX Screener.
1. Exploring new token pairs
Go to the "New Pairs" section in the left-hand menu and click on the link to see a list of tokens recently added to various DEXs. This can be helpful for identifying new trading opportunities or staying updated on emerging projects.
2. Exploring chains and DEXs
Moving down the left-hand sidebar, you'll find the list of chains. Upon choosing one of the chains, for example, the Ethereum blockchain, you'll see the dashboard containing Ethereum-based tokens, including the price chart, trading volume, makers (unique wallet that traded the pair), liquidity, market capitalization, and price change charts.
Above the chart, you'll find several buttons to customize the dashboard. For example, you can choose last-hour charts or select a "Trending" screener based on the preferred period for calculating the Trending Score. You can also view new pairs from the explored blockchain added in any of the available time frames.
Blockchain selection is also available at the top bar of the New Pairs and Gainers & Losers sections. However, if you choose a chain from the left-hand menu, the top bar will provide you with a list of DEXs. When you click on any given platform, you'll see a screener with a list of pairs traded on this platform.
3. Analyzing token performance
To analyze the performance of a specific token, use the search bar and type the name of the asset. The results will show a list of pairs for that token. After choosing the pair, you'll be redirected to a page with a price chart and additional data below, including transactions (date, type, price, maker, etc.), top traders, holders (percentage, amount, etc.), and liquidity providers. To analyze price trends and identify potential entry or exit points for trades, choose a preferred time frame.
On the right-hand sidebar, you'll typically find compound information about the project with links to its website and social media, plus additional features, such as a watchlist, alerts, and trading functionality linking to DEX platforms.
4. Tracking on-chain data
Getting familiar with the transaction history is a crucial part of the pre-investment reconnaissance. View recent trades for a particular token pair on customizable screeners, including the price, trading volume, and time of each transaction. This can provide insights into trading activity and potential market sentiment. If you want to focus on specific pairs, DEX Screener gives you the ability to create unlimited watchlists. You can easily monitor various tokens and assess investment opportunities using several metrics.
How to trade on DEX Screener?
DEX Screener is not only a top data platform supporting crypto traders in making informed decisions but also a trading tool. It connects investors to trading protocols, enabling them to buy or sell assets of their choice. The functionality is available on the right-hand sidebar of every token pair page. It allows users to trade within the DEX Screener platform through a pop-up window. Alternatively, it provides a direct link to the supported platform. If you choose to go with DEX Screener, you can expand the window to the full-screen size for convenience. The app is responsible in its approach to handling trades. If a user provides too high an amount for a given pair, DEX Screener issues a price impact alert – warning that the transaction will affect the market price, resulting in a loss for the user.
Users making a transaction through DEX Screener can choose to tip the platform. The default amount is set at 0.3% of the transaction value, but you can switch it to "No tip" or a higher amount if you prefer.
Overall, DEX Screener is one of the best one-stop shops for crypto analysis and trading on the decentralized markets.
