How Cryptocurrency Benefits from Big Data Analytics

Thorough analysis and reduced frauds, Big Data is creating a safer cryptocurrency Environment

According to reports, the cryptocurrency market will reach about US$1758 million by 2027, at a CAGR of 11.2%, from US$754 million in 2019. With increased exposure to digital modes of transaction, digital currency has witnessed a recent surge in investments and trading.  The crypto market has been booming since the past decade. With changes in the global finance and market scenario, it has witnessed an increased engagement by several organizations and independent traders. But with an increase in investments, arises several complexities that need immediate assistance. Big Data helps organizations and traders to understand the recent market trends and make definitive decisions. It provides a secured framework of transaction and allows individual investors to determine suitable market conditions and invest accordingly.

The following details show how the cryptocurrency market is benefitting from big data:

• Increased Security and Reduced Frauds: By recognizing the blockchain pattern through in-depth analysis, big data analytics provides a guided framework to monitor cryptocurrency trading to avoid hacks and frauds. Several entrepreneurs and traders are skeptical about investing in cryptocurrency because of the fear of scams. But with data analysis and constant monitoring, it is easier to identify scammers and fake crypto traders.
•  Marking the Volatile Patterns: Understanding the market trends and patterns is what makes a successful cryptocurrency trader. The trade value of crypto determines the investment. To avoid losing, it is crucial to understand the current market patterns and act accordingly. Big data and AI tools help gather information through media platforms and analyze customers' behaviors and current patterns. Traders understand these volatile patterns and make constructive decisions.
• Amplifying crypto startups: Earlier, entrepreneurs faced hurdles while establishing crypto startups due to a lack of funding and proper analysis of the current market trends. A more secured framework of cryptocurrency trading enables investors to make smarter choices. Big Data analyzes vast amounts of information to gather the most profitable and suitable market landscape for startups, enabling them to make smarter choices.

The use of Big Data in cryptocurrency trading has proven beneficial for everyone. It has not only allowed new traders to invest through blockchain technology but has also enabled large-scale organizations to invest in the crypto space. Further, Big Data Analytics has become a guided network for several crypto traders around the globe.