As the cryptocurrency market heads into the summer of 2021, there’s no doubt that we’re in a bull market, at least at the time of writing. When major cryptocurrencies like Litecoin have made 25% plus gains within the space of week, and Dogecoin has had its second pump within the space of a month, now isn’t the time to be caught sleeping.
As traders scramble to find the best Bitcoin exchange or the best cryptocurrency exchange, Binance and Kraken are ready to fill the vacuum. For New York residents requiring a cryptocurrency exchange with a Bitlicense, Gemini, Coinbase and Coinbase Pro are also top cryptocurrency exchanges. Robinhood, while not necessarily a cryptocurrency exchange, does have a Bitlicense.
Paypal is available for New York residents but only for purchasing the following coins: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. At 2.5% commission for each trade, some would consider Paypal to have high fees. Paypal has great ease of use, however, especially when a beginner want to sell cryptocurrencies and export the fiat to a bank account.
Whether the users are advanced traders of cryptocurrencies and non-fungible tokens, top cryptocurrency exchanges or the cryptocurrencies themselves, crypto relies on data analytics.
What is data analytics?
Data analytics is the data integration technique of using algorithms to analyze raw data. This data analysis allows the user to make better decisions.
Big data analytics allows the user to interpret big data. Big data involves datasets that are too large for traditional data-processing software.
Manufacturing data analytics is the use of data analytics within the manufacturing industry. The advantage of manufacturing data analytics is its efficiency. All the data is in real-time providing actionable insights because there is direct access to the supply chains.
Data Analytics for Cryptos
Cryptocurrencies use a lot of raw data. First, of course, there is the actual code of each coin that is written into each blockchain ledger. Bitcoin had a reputation for being too heavy with the raw data of its coins, and that problem created a use case for Bitcoin Cash, Litecoin, Ethereum, Ripple, Cardano, and a host of other digital currencies.
In addition, the actual proof-of-work that is for coins like Bitcoin is a form of raw data, as is the actual proof-of-stake that is used for coins like Cardano. Meaning, there can be no crypto mining without the techniques needed to interpret all the raw data involved in creating and claiming coins within a blockchain ledger.
Data Analytics for Crypto Exchanges
Trading platforms have been using data analytics and advanced analytics with algorithms even before they started to trade cryptocurrency. For the wild world of HFX margin trading, algorithms are the normal, and traditional stock brokers shouting expletives in tasteless, primary-color jackets have become a relic of the past and the nostalgia of a good Oliver Stone movie.
Big data analytics is needed about cryptos, stocks, and virtually any other security that can enable advanced traders and newbies to obtain a superior forecast. This enables better decisions for the best option on each trade.
The security aspect of big data and its analytics is also critical to any trading platform that wants to claim the title of best cryptocurrency exchange. Hackers are a real problem, so features like two-factor authentication and the best option of crypto wallet and private key for cold storage are desired. The data collection needs for such security naturally require big data analytics.
Some exchanges, like PayPal, are best used for major cryptocurrencies, and some, like Gate.Io and Bitfinex, are more suitable for altcoins like Aventus, SuperFarm and Shopping.Io. Some are comfortable for using fiat currency as a payment method and others are better for using a stablecoin like Tether (USDT). BlockFi allows Litecoin owners to collect 8.6% APY on their stored Litecoin.
The best exchange is an individual decision based on the best option available. Other exchanges worthy of mention include, but are not limited to, the following: Etoro, GDAX, Bittrex and CoinMama.
