Data analysis is the process of examining, cleaning, modifying, and modeling information. The goal of data analysis is highlighting valuable information, drawing necessary conclusions, and supporting decision making. Data analysis has different approaches comprising many techniques depending on the various domains such as business, social science, or science domains.
Due to the volatile nature of cryptocurrencies, investors are finding more ways to analyze the crypto industry. Big Data looks forward to reaching a total value of $ 275 billion by the year 2023. One can use the Intellipaat blockchain and Big Data Training platforms if they want to know more Big Data Analytics.
Intellipaat is an e-learning and professional certification company that offers training on all modern technologies. The company gives training on Big Data, DevOps, Python, Data Science, Blockchain certification course, and other technologies. There are numerous benefits of combining Big Data with cryptocurrency; here are the three top of the list benefits.
Protecting Against Hacks and Improving Security
Lack of security is one of the hurdles that discourage people from joining the cryptocurrency industry. Big Data is, in this case, necessary to help protect against hacks and improve safety as well. Big Data improves security using two simple tools: pattern recognition over the transactions and in-depth blockchain data analytics. Applying the two tools makes it effortless to know fake and dangerous crypto users, and hence genuine users can avoid trading with them.
A system can, however, leak data regardless of how secure it is. There are lots of data-based hacking, and therefore, it is easy for a crypto investor to lose their coins. Big Data is vital in this case to identify potential leaks and security threats. Security analysts are even applying Big Data analytics to enhance overall security and prevent hacking.
Big Data Analytics Helping Spot Volatility
The value of cryptocurrency significantly relies on the trade volume; therefore, it is vital to understand the market trends to be a successful crypto trader. Thoroughly analyzed information on market trends can show traders the anticipated value and trade of cryptocurrencies. The value of market demand solely determines the value of cryptos; that is why it is crucial to be aware of the market trends due to cryptocurrencies’ volatility.
Big Data collected from social media platforms also shows the consumer’s behavior towards cryptocurrency. Crypto traders can, therefore, understand people’s feelings towards the current state of the crypto market. Understanding consumer behavior using social data is essential since crypto trading relies more on individuals; all the events that can affect cryptocurrencies get posted on social media platforms.
Boosting Blockchain and Crypto Startups
The application of Big Data in the cryptocurrency industry is progressively making this sector more secure. Therefore, investors feel more confident in investing their funds in cryptocurrency-based startups.
Tracking and analyzing cryptocurrency transactions using Big Data is also a big deal in boosting crypto startups. It allows startups to build more profound and lasting collaborations.