Predicoin and Augmento Blockchain Sentiment Analysis (SA) Help Crypto Traders and Investors
Sentiment Analysis Tools for Smarter Cryptocurrency Trading
Although it is not hugely popular, the field of sentiment analysis is growing at a rapid rate. Recently, two platforms have emerged in this sector, with each showcasing its cutting-edge infrastructure that features enhanced tools for effective trading. While the collection of sentiments on the internet and using such data to establish actionable insights seems challenging, the creators of Augmento and Predicoin think otherwise; they believe that their solutions are capable of handling this task adequately.
When compared to conventional trading metrics, the evaluation of the market’s situational sentiments towards specific digital assets seems trivial. Nevertheless, this parameter is still useful in its own way. As expected, the current sentiment towards a cryptocurrency will not highlight the best entry or exit point for trading, but it can be used as a pointer for the coin’s performance in the immediate future. To put this into perspective, the famous Bitcoin bull market of last year was preceded by the euphoria in the crypto space back then. Mostly, sentiment analysis identifies subtle and unpopular hints, which is why machines cannot be substituted for human judgment in this task.
Augmento was developed after a partnership between two entities – one based in Berlin and another in Copenhagen. The platform, which is currently in beta testing, leverages AI to assist in sentiment analysis and trend detection. According to the CEO of Augmento, Michaels Baumgartner, the crypto community’s psychology changes regularly like a body on steroids. Michael adds that Augmento is on the forefront of the creation of AI-based systems that can analyze the mood and the subjects under discussion from millions of users in real time.
Additionally, Augmento has the ability to assess a wide range of sentiments regarding a particular virtual currency. For instance, investor s who are interested in Bitcoin can gauge the moods towards it, whether it is bearish, panicking or happy, and so on. Essentially, traders use these signals as an indicator on whether to stake more, hold, or exit the market. Presently, the primary source of Augmento’s sentiment data is the Reddit forum, although the platform will soon integrate Twitter and the Telegram messenger. Furthermore, Augmento will also add an API for hedge funds.
Another sentiment analysis platform that will soon go live is Predicoin. Unlike Augmento, Predicoin draws its data form several sources, including Reddit, YouTube, Telegram, Medium, Twitter, and Facebook. Moreover, this platform uses data mining and machine learning techniques to evaluate social media content and prevailing news to establish the public’s, mood toward various cryptocurrencies. As per the project’s founder, Pierre-Alexandre Picard, the motivation for the introduction of Predicoin was the hard time that investors undergo while attempting to find quality info reading specific digital assets. Fundamentally, the crypto analytics mechanism s deployed in the Predicoin platform assists crypto investors to make informed trading decisions.
Similar to Augmento, Predicoin is in the beta testing stage waiting its official inauguration. Michael Baumgartner is confident that the stature of SA will grow exponentially if done correctly, mainly because it is one of the most accurate means of predicting cryptocurrency trends.