Understanding Volume and Smart/KOL Indicators in Crypto Screening

When it comes to navigating the volatile world of cryptocurrency, especially meme tokens, having the right tools and knowledge can make all the difference. One such tool is a crypto screener, which helps traders identify potential opportunities by filtering through vast amounts of data. In a recent thread by MeteoraUK, a quick guide was shared on how to use volume and smart/KOL (Key Opinion Leader) indicators effectively on your favorite screener. This guide is particularly aimed at those new to the space and looking to perform due diligence on primarily new coins.

What Are Volume and Smart/KOL Indicators?

Before diving into the guide, let's break down these terms:

• Volume Indicators: These measure the amount of a cryptocurrency being traded over a specific period. High volume often indicates strong interest and liquidity, which can be a sign of a coin's potential for growth or a red flag for manipulation.
• Smart/KOL Indicators: These refer to metrics that track the involvement of influential figures or communities within the crypto space. For meme tokens, this could mean monitoring the activity of well-known traders or communities that can sway market sentiment.

The Guide in Action

MeteoraUK's thread provides a visual walkthrough, starting with a screenshot of a screener interface at 0.00 seconds:

This image shows a list of crypto assets, each with columns indicating volume, price changes, and other metrics. The guide emphasizes the importance of looking at these indicators to spot trends and anomalies.

As the video progresses, additional screenshots are shown, such as at 7.09 seconds, 14.18 seconds, and so on, each highlighting different aspects of the screener:

Here, the focus shifts to "Trending Pools," a feature that lists assets with significant recent activity. This is crucial for identifying new coins that are gaining traction.

Practical Tips for New Traders

For those new to using screeners, here are some practical tips based on the thread:

1. Start with High Volume: Look for coins with unusually high trading volume compared to their market cap. This could indicate a pump or genuine interest.
2. Monitor Smart/KOL Activity: Pay attention to coins that are being discussed or promoted by influential figures. This can be a double-edged sword, so proceed with caution.
3. Use Multiple Time Frames: The guide mentions checking data across different time intervals. This helps in understanding whether a trend is short-lived or has longer-term potential.
4. Cross-Reference with Other Tools: While the screener is powerful, combining it with other due diligence tools, like Messari or CoinMarketCap, can provide a fuller picture.

Why This Matters for Meme Tokens

Meme tokens, in particular, thrive on community sentiment and viral marketing. Understanding volume and smart/KOL indicators can help you spot the next big thing before it becomes mainstream. However, it's also a reminder to be cautious, as these tokens can be highly volatile and susceptible to manipulation.

Conclusion

MeteoraUK's guide is a valuable resource for anyone looking to deepen their understanding of crypto screeners, especially in the context of meme tokens. By focusing on volume and smart/KOL indicators, new traders can perform better due diligence and make more informed decisions. Remember, this is not financial advice (NFA), and it's always wise to learn from experienced communities, such as those in the met_lparmy discord.

Whether you're a seasoned trader or just starting out, mastering these indicators can be a game-changer in the fast-paced world of cryptocurrency.