Why Is Sentiment An Important Analytic To Consider When Investing In Crypto
What is sentiment? Sentiment analysis applies to NLP or natural language processing of various types of online data including social interactions. Sentiment can be positive and or negative and takes into account large amounts of data across multiple channels. Ultimately what drives sentiment is emotion and this is the driving force behind everything a user does online and can affect what they chose to invest in.
Sentiment is an important indicator when it comes to determining what the crypto market might do next. It shows how investors are feeling towards a particular asset or a market in general. In crypto, sentiment is a big driver of the price of digital assets and is important to consider when investing in a cryptocurrency.
The Crypto Fear & Greed Index, for example, is a tool that measures market sentiment using a number of factors. When sentiment turns to greed, investors are looking at the market positively and therefore are investing more. This would be an indicator of a bull rally or an impending surge in price of an asset.
Using Sentiment Analysis
Platforms like Defy Trends offer sentiment analysis to users which they can use to make more informed trade decisions. Using data-backed analysis like this gives traders and investors a potential edge in the market by providing them pertinent information about the communities that support specific tokens and how they feel about them.
Being able to understand the emotions of users towards a particular product has always been a powerful marketing tool and this spills into crypto investing. DeFy Trends provides a comprehensive sentiment analysis ranging from social sentiment and corporate (institutional) sentiment.
This data, combined with other data that is collected by the platform, is then presented in a way that even new investors are able to understand, breaking the barrier to entry.
About Defy Trends
Defy Trends broke into the crypto space with its education and intelligence data offering. The all-women-led analytics firm was named one of the two winners of the 2021 edition of the Startup Showdown held in Miami. Hosted by Panoramic Ventures, the company walked away with a $120,000 cash prize for emerging in the top position in a pool of 200 talented applicants.
Defy Trends uses on-chain and off-chain data to deliver a comprehensive product that guides users through their investing journey. It covers the cryptocurrency market in totality, providing insight into the trends that move the market.
Defy Trends tracks social sentiment, worldwide trends, sustainability index, real-time data and forecasting, and its trademark index known as the DeFy Trends Index. All of this data is condensed into an all-in-one intuitive and real-time data and AI analytics web and mobile application, giving crypto traders access to real-time actionable insights and high-quality education to empower them to make informed investment decisions.
Traders are able to tailor the services provided by Defy Trends to suit their specific needs. Indicators are split into different tiers depending on the needs of the trader, as well as a customizable personalized dashboard.
If you want to get leading crypto and NFT market information in the real-time sign up now for Defy Trends early beta launch sign up now Defy Trends | Empowering better cryptocurrency investment decisionsSource