Data Analytics for Cryptocurrency: Opportunities for Traders
The aim behind cryptocurrency investors and traders are to make a better judgment, and data analytics is the key. Cryptocurrency trading is good, but it can also turn up to be a bit of a gamble. Blockchain based innovations have changed the digital currency world into an independent ecosystem.
Frequently browsing a vast amount of data from various sources means the noisier the input. As crypto markets mature and expand, information overload becomes an issue. This is where crypto-specific tools come into play. One such tool that has been recently introduced is Predicoin, which provides its own data analytics in the form of SentScore. Predicoin seeks to apply its datasets and analytics framework to obtain trends between price and sentiment. Predicoin identified the positive news posted on XRP and shared on social media several times, bringing its native Sentscore to an all-time high for ripple. In order to further improve its algorithmic predictions, Predicoin conducts statistical tests on the data it collects to develop metrics that link prices and social information. Ultimately, the goal is to develop a tool that can be used by traders and investors for asset research. The data analytics service of Predicoin currently extends to 30 cryptocurrencies, allowing enthusiasts to log in and discover social patterns, check daily, weekly and monthly scores, and access the content from which these scores are formulated.
Incorporating big data with cryptocurrency has various benefits. Identifying fake and dangerous users as anonymity and safety are the main perks of cryptocurrency trades. With over 200,000 transactions happening per day, it would be an understatement to say that there are little to no risks. The vast volumes of trade make it impossible to track down the flow of currency. This is where big data analytics steps in to identify security hazards and potential threats. This information is a vast and valuable source of data which when analyzed carefully can give hints to directing the trade volume and value of cryptocurrency. Since cryptocurrency has no physical parameters that affect its value, market demand is the only factor evaluating it. Due to the open ledgers kept by cryptocurrency-based startup companies, investors feel safer in placing their money in the entrepreneur’s hands.
With each day that passes by, more enterprises realize the need for big data analytics and the influence it has on market comprehension, detecting consumer patterns, and trend analytics. With cryptocurrency spiking a peak, introducing data analytics was not far behind.