Bitcoin Investors

When it comes to gaining the tiniest of advantages in a highly volatile market such as the cryptocurrency landscape, there is no better person to turn to than machines so that it would seem.

Well, this is what hedge funds and asset managers are doing currently. They are soliciting for the help of software developers to help them understand and harvest sentiment signals to their advantage.

“It is no surprise that algorithms that can decode market sentiment are becoming a permanent fixture in the cryptocurrency trading world.”

It is no surprise that algorithms that can decode market sentiment are becoming a permanent fixture in the cryptocurrency trading world. There is now a keen interest in software and algorithms that can take note of price clues from social media contents, and thus helping money managers make better decisions.

The use of A.I and software have been in existence for quite a while now in the traditional financial markets, and given how cryptocurrency is an offspring of the internet is no surprise that algorithms are now playing a key role in market analysis, and decision making processes.

“Reports already indicate that managers who avail themselves to sentiment analysis along with other tools, often have a higher return on investment than competitors. “

There is still a long way to go before A.I and software can fully influence the market. Moreover getting a developer to create a responsive algorithm that can interpret and harness sentiment signals to their advantage doesn’t come cheap either.

Notwithstanding, there is always a lot of chatter on social media platforms like Reddit, Telegram, WeChat, Kakao, Twitter and lots more about bitcoins and cryptocurrency, that should money managers look into can help them get a better insight.

Reports already indicate that managers who avail themselves to sentiment analysis along with other tools, often have a higher return on investment than competitors. With the array of information on display on social media platforms about bitcoins and cryptocurrency, who is to say, money managers, can’t harness these bits and pieces to their advantage.

 

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