Since 2009, the popularity of the cryptocurrency industry has increased rapidly, establishing a new type of digital investing. Reports now suggest more than 100 million people hold virtual currencies, and there are thousands of transactions per day for cryptocurrencies like Bitcoin and Ethereum. However, as cryptocurrencies continue to grow, so too does market volatility and the amount of transactional data. Because of this, it can be hard to maximize profits and identify future trends, which is why the crypto market can benefit from adopting techniques from big data analytics.

The Rise of Crypto

As many people know, cryptocurrencies are digital payment forms that people can use to buy online goods and services. The technology behind the crypto market is blockchain, a digital ledger that records transactions and validates them through proof of work or proof of stake. Cryptocurrencies are found in many industries today, including retail and online gambling. For example, in countries like Canada, you will find digital currencies such as Bitcoin accepted at retail stores like Birks Group, and there are many crypto casinos in Canada available in the North American country. These casinos have many benefits, such as providing crypto users (Bitcoin, Litecoin, etc.) with fast transaction speeds, higher bonuses, and the lowest possible minimum deposit and withdrawal limits. Even corporate giants like Microsoft, AT&T, and Starbucks have started accepting cryptocurrencies in Canada.

Crypto and Big Data Analytics

Despite so many industries capitalizing on the popularity of cryptocurrencies, the market still has its problems. Fortunately, big data analytics can solve many of these issues, such as by helping crypto users better identify the future of the market and the value of the thousands of digital currencies available to purchase and trade. That is because data analytics tools can help uncover trends by looking at historical data, which crypto investors can use to make informed decisions about where the crypto market is going.

Let's say someone uses a crypto dashboard to monitor their coins and transactions. Dashboards are one of the best data visualization tools in the analytics market because they help bring visibility to your investments and finances. When someone connects their crypto wallet to a dashboard, they are able to track their performance in real-time and look at how much they have invested in different cryptocurrencies. Crypto dashboards also allow people to study ROI, acquisition cost vs. profit/loss, and the exchange rate of their cryptocurrencies. Examining a particular cryptocurrency's exchange rate history will inform you of how stable the coin is compared to others.

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Using a dashboard to monitor your crypto performance is an example of descriptive analytics, but users can also take advantage of diagnostic analysis. For instance, it's one thing to see on your crypto dashboard that you have a negative ROI, but you won't learn from this without finding out the why. Why is it negative? Why have you lost money? You can use diagnostic analytics to answer these questions.

Big data analytics is a massive market, and many industries have started adopting its tools and techniques to monitor their financial performance. The cryptocurrency industry, in particular, is one market that can benefit from data tools like dashboards and methods like descriptive and diagnostic analytics to predict current and future trends.