Crypto Sentiment Analysis: All You NEED To Stay Ahead!!

📚History Of Sentiment Analysis📚

Sentiment analysis has been around for a long time but it took off in the early 2000s as social media platforms started to emerge It was first used by online shopping giants like Amazon and politicians like Barack Obama to gauge public opinion without having to read every single comment. As of about 2010, sentiment is used for trading

👨‍🏫How Does Sentiment Analysis Work?👨‍🏫

In a sentence, sentiment analysis involves analyzing a text to determine whether it is positive, negative, or neutral This is done by assigning a score to each word depending on how negative or positive it is, and then adding all those scores together to see what the overall sentiment of the text is

📊Sentiment Analysis In Cryptocurrency Trading📊

If you can detect the emotions of investors in advance with sentiment analysis on say, social media platforms like Twitter and Reddit, you could theoretically predict the price action of any cryptocurrency

😱Bitcoin Fear And Greed Index 🤑

The fear and greed index for cryptocurrency is modeled after the fear and greed index for the stock market which was created by CNN’s financial division. Both are updated on a daily basis Like the fear and greed index for the stock market, the fear and greed index for cryptocurrency is created using an aggregate of metrics that are also worth looking at separately

🐂Bitcoin Bull And Bear Index🐻

In contrast to the fear and greed index, the bull and bear index focuses exclusively on bitcoin sentiment on social media platforms, specifically Bitcointalk, Reddit, and Twitter More importantly, the bull and bear index is updated every hour which makes it more suitable for active day trading.

🔎Cryptoradar🔎

The cryptoradar tracks social media sentiment for Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and XRP in real time

👨‍💻Santiment And LunarCrush👨‍💻

LunarCrush tracks over 2 thousand cryptocurrencies, and you can rank them using any of the 27 sentiment and price-based indicators LunarCrush offers Like LunarCrush, Santiment tracks a series of social sentiment metrics using data from Twitter, Reddit, and even Telegram for nearly 2000 coins and tokens

💸Altcoin Sentiment Analysis Trading💸

Sentiment analysis’ forecasting features are more powerful for mid and small cap altcoins. This is because their price discovery is more organic as they are not the focus of market manipulation Even though many mid and small cap altcoins are also manipulated from time to time, usually that manipulation is coordinated through social media Because most if not all this information is out in the open, sentiment analysis indicators can often let you get in early and sell right as that pump is peaking Even so, be weary of how that sentiment data is being collected

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📜 Disclaimer 📜

The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading cryptocurrencies poses considerable risk of loss. The speaker does not guarantee any particular outcome.