Watchlist Definition
A watchlist in the context of cryptocurrency and blockchain is a tool used by investors and traders to monitor real-time price changes of specific cryptocurrencies. Being digital assets, cryptocurrencies can be extremely volatile and observing a watchlist enables the investor to closely watch price movements, ultimately guiding trading choices.
Watchlist Key Points
- A watchlist helps to monitor price fluctuations specifically in cryptocurrencies of interest.
- It helps to make informed investment choices.
- It aids investors in keeping track of the entire cryptocurrency market or of particular coins.
- It is an essential element of any trading strategy, allowing for better risk management.
What is a Watchlist?
A watchlist is a list of selected cryptocurrencies kept by an investor for close monitoring. Watchlists vary from person to person as every investor has different preferences, risk appetite, and investment goals. Comprising of specific cryptocurrencies, a watchlist is integral to any investment or trading strategy which allows one to keep an eye on market trends.
Why is a Watchlist necessary?
Cryptocurrency market is known for its volatility, and prices can fluctuate rapidly in a matter of seconds. This volatility is a double-edged sword, offering both high rewards and high risks. A watchlist proves to be very handy here as it allows the investor to closely observe the market movements, which assists in making informed investment decisions.
Who uses a Watchlist?
A watchlist is used primarily by cryptocurrency investors and traders. However, it can also be used by anyone interested in the digital asset market, including market researchers, data analysts, and enthusiasts who like to keep an eye on the trends and development of this volatile market.
When to use a Watchlist?
A watchlist can be used at anytime, however, they are most effective when intending to initiate a trade or assess an investment. By having an assembled list of cryptocurrencies to observe, the investor can make more informed decisions, especially in times of rapid price movements.
How to create a Watchlist?
There are several platforms that provide the feature to create a watchlist. One just needs to select the cryptocurrencies of interest and add them to their watchlist on the platform. These platforms provide real-time price updates of the selected currencies, helping to keep a track of their performance.
