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Coinscious Team

Actionable Intelligence: What’s Missing from the Cryptocurrency Trading Market

By | Data | No Comments

Actionable intelligence: Relevant information needed to make a decision or take an action, usually quickly.

You’ve probably heard the phrase actionable intelligence before. Sometimes it’s used in law enforcement. When an informant or a witness tells a law officer about a crime they’ve observed or about plans to commit a crime, that’s actionable intelligence. It gives law enforcement reasonable cause to take an action of some kind.

The phrase also applies to business and refers to any information that gives a business a competitive edge or improves its performance. For example, a business hears that a competitor plans a sale of a product tied to a holiday. The business may then match that sale and perhaps start it earlier to get a jump on their competition.

Market Immaturity Distorts Intelligence

Actionable intelligence is news you can use. Right now, reliable information that can be acted on is missing from the cryptocurrency trading market. Traders have access to some information, but its accuracy may be in doubt. Traders rarely have access to key information they can use to inform their market moves.

Cryptocurrency trading faces the same pressures that other new markets have faced. There is little infrastructure to support this market. Some coin exchanges must suspend account creation due to high demand and load. Traders worry about security issues, delayed transactions, price manipulation, and robot use by other traders. Risk, uncertainty, and security concerns loom large over coin trades. There’s also little if any regulation of these markets, causing some traders to lose faith in the exchanges. Price manipulation and hacking incidents erode investor trust. Every country is coming to terms with the arrival of cryptocurrency. Some are embracing the market as a sign of things to come. Others are fiercely opposing the markets, believing cryptocurrency to be a nuisance that will eventually disappear.

The volatility and unregulated nature of these markets means investors must stay aware of security issues. Hyperbolic ads, planted news reports, and social media hysteria create a “gold rush” mentality convincing people to sink their money into questionable coin offerings. For the serious investor, the challenge comes in separating reliable data from noise.

For all these reasons, Coinscious is determined to deliver actionable intelligence in their platform. While other sites and apps simply provide information, Coinscious actively uncovers patterns in the information. With these AI-generated and data-driven insights, traders are better equipped to build portfolios and create, execute, and refine their trade strategies.

Defining Actionable Intelligence

Despite continued signs of volatility, the cryptocurrency market is actually maturing. Governments and regulatory bodies are paying close attention because of the value flowing through the market. Investors are looking for dependable intelligence that they can use to create smart trading strategies. Traders are clamoring for tools like those used by stock market investors, which can regulate their trades and follow buy/sell rules. These are all signs that sanity is gaining ground in this emerging field.

As this market continues to mature, what attributes should traders want in the information they use to inform their decisions?

  • Reliable: Find sources that offer intelligence regularly and that have proven to be dependable.
  • Credible: Credible sources offer reasonable grounds for being believed. These sources are backed by primary data that can be checked against.
  • Hype-free: Much of the publicity surrounding the coin market is filled with hype and traders may allow emotion to drive trades. It’s important to track sentiment, but that measure needs to be correlated to price data.
  • Timely: Intelligence only matters if it comes early enough to be acted on. Serious traders need a consistent flow of information that comes on time every time.
  • Accurate: Information does no good if it’s riddled with errors. You need exacting, error-free data as you maneuver through the coin market.

Using the Power of AI and Deep Learning to Deliver Actionable Intelligence

The Coinscious Collective™ platform tracks price, trade, and social media data, using AI to separate data from hype. The goal is to deliver actionable intelligence that investors can use to evaluate market performance and create smarter strategies. The platform uses deep learning to reveal hidden patterns. Our models generalize future trends while also factoring in uncertainty. In this way, the Coinscious Collective™ platform limits non-essential data and delivers statistically credible information that both amateur and professional investors can rely on.

Want to understand how the Coinscious Collective™ platform delivers actionable intelligence? Visit Coinscious.io to learn how Coinscious works.

 

Data or Noise: Making Sense of the Cryptocurrency Trading Market

Data or Noise: Making Sense of the Cryptocurrency Trading Market

By | Cryptocurrency | No Comments

Too good to be true press reports.
Misleading ads.
Unscrupulous exchanges.
“Gold rush” fever.

These are just a few of the things that can overhype crypto-coin value. If you’re a serious investor, how do you resist the hype and rely only on data? Where do you find reliable, unbiased information to guide your trade decisions? If you’ve been in this market long, you know answering those questions is difficult. You’re left to your own ingenuity to figure it out for yourself.

Risky Business

As a cryptocurrency investor, you face risk. That risk is higher because you have no easily accessible tools to help you manage your investments. Unlike the traditional stock market, cryptocurrency investors can’t choose from a wide array of apps or measurement guides to drive their trade decisions. For active traders, it’s difficult to set up investment buy/sell parameters tied to return, liquidity, or market movement.

All investment carries risk, but in new and uncertain markets, that risk is heavier. The price volatility of cryptocurrency convinces some traders to stay away, or to only invest small sums. Others are suckered by the hype and gamble too much based on too little information.

Many factors affect coin prices—social media buzz, news reports, trade activity. It’s hard, if not impossible, for traders to calculate how each factor plays into cryptocurrency price fluctuations. To compound matters, traders are hit with lots of information at every step of the trading process. Investors find themselves making trade decisions based on scattered information from random online sources. Scouring that information takes time and adds uncertainty to the process.

How AI and Machine Learning Manage Risk

The cryptocurrency market is nuanced, complex, and volatile. As this market matures, it attracts more interested traders. That interest will create demand for tools that support both casual and professional investors at each step of the trading process—from building a portfolio to developing and improving trade strategies. Any solution must address the two core questions that traders ask: How can I understand the market to better build my portfolio? How can I manage my trade strategy?

These are also the questions that Coinscious has asked. Our team of blockchain engineers, data scientists, and AI researchers found the answers in AI and deep learning. Using deep neural networks, the Coinscious Collective™ platform has been trained to automatically recognize patterns and make predictions by observing data. The platform applies statistical machine learning algorithms to the cryptocurrency market to understand and recognize the patterns in available data.

With these technologies, the platform extracts the information needed to help traders make informed decisions. The platform’s AI and machine learning capabilities focus on areas that investors care about most: future value prediction, uncertainty estimation, market correlation detection, and monetary and coin movement patterns.

Separating Data from Noise

The goal of the Coinscious Collective™ platform is to separate signal from noise in price data, trade data, social media data, etc. We have three goals:

  • To be immune to noise as much as possible
  • To determine the noise-to-signal ratio at any given time
  • To improve the decision making process for traders and investors

Whether in the stock market or crypto market, information overload often drowns out the valuable signal. The ability to separate noise from data helps investors better evaluate market performance and create smarter strategies. In fact, studies show that what separates successful traders from all the others is the ability to distinguish data that matters from information that doesn’t.

With the explosive growth of data, information overload is a common problem and causes traders to get distracted. This creates a number of problems for serious traders:

  • The chance of discovering meaningful information is equivalent to finding a needle in an exponentially growing haystack.
  • There are limits to how much information any human can process and filter.
  • Even if you overcome the first two limits, human bias accumulates over time and affects the filtering process.

To remedy this, Coinscious leverages an AI system. Using deep learning, the platform uncovers hidden patterns. The platform achieves this through gathering a good representation of data (i.e. feature engineering), ensuring the model extracts noise while also generalizing future trends, and modeling uncertainty. It’s with this process that the Coinscious Collective™ platform limits non-essential data and delivers statistically credible information. If you’re a serious investor, you can spend your day trying to find the right information, or you can let Coinscious deliver the right information to you.

Want a deeper understanding of the technology behind the Coinscious Collective™ platform? Learn how Coinscious works.