With the astronomical rise of both cryptocurrencies and NFTs (non-fungible tokens), investors are often faced with a recurring conundrum that is often based on the inability to know which projects are worth investing in. After all, there are countless cryptocurrencies out there by now and new NFT projects are emerging seemingly every other week.
As such, there is a clear need to know which projects are viable and that is where data analytics comes in. This article will also discuss how Defy Trends is utilising data analytics and AI to help investors make more informed decisions.
What exactly are data analytics?
Simply put, data analytics may be understood as the science of analysing raw data which can then be used to draw informative and research-backed conclusions. Regarding cryptocurrency investments, there are hence two types of data analytics which are known as on-chain and off-chain respectively.
On-chain data analytics often involves the analysis of cryptocurrencies as well as any relevant information which occurs on a specific public blockchain network. This might include transaction data such as sending and receiving addresses, transferred tokens, amount and fees, and more. On-chain data also includes block data such as rewards, timestamps, and miner fees. In on-chain analysis, the aim would therefore be to use a non-emotional approach that isn’t based on sentiment.
In comparison, off-chain data analytics involve assessing sentiment. This could include trends, activity on social media channels, and so on. A significant distinction between the two types is that on-chain analysis may also be called blockchain analysis, but off-chain analysis involves evaluating information which has not been recorded on a blockchain.
How is Defy Trends helping out?
Using data analytics to improve decision making may seem like a no brainer, but relatively few people in this industry actually do it. Defy Trends wants to change that, and their all women team has had a modicum of success already when they accurately predicted both the recent September market correction as well as the May crash.
Defy Trends is a user-friendly, all-in-one NFT and crypto intelligence platform which enables individual as well as institutional investors to make informed, data-driven investment decisions. To that end, on-chain analysis, sentiment analysis, fundamental analysis, news aggregation, AI projections, in-depth instructional resources, and crowd-sourced research are all part of the Defy Trends platform.
The platform’s objective is to hence make investing recommendations backed by empirical data and information available to everyone, thereby delivering financial success to the masses. The goal is to make cryptocurrencies available to everyone worldwide and in a way that everybody can benefit. This is in line with the team’s values and motivations which have to do with the overarching belief that everyone has the ability as well as the inherent right to be an informed cryptocurrency trader.
In terms of how it’s helping out, Defy Trends wants to eliminate the barriers associated with getting involved with cryptocurrency and NFT trading and do away with common issues such as having too much choice regarding investments, over-marketing and influence of social media to generate ‘hype’, fragmented information, and inaccessible as well as inadequate educational resources. Right now, there are over one thousand users subscribed to the platform’s beta, and Defy Trends’ main target is B2B and B2C customers.
The future of investing
If 2021 alone is anything to go by, then it is becoming abundantly clear that cryptocurrencies and NFTs are not going away anytime soon. Although there are others like Defy Trends such as Dune Analytics, Messari, Delphi Digital and the AI-oriented Nansen, the overall recurring theme is that data analytics are becoming increasingly popular alongside the industry’s own rapid growth.
Furthermore, as investors continue to spend money on all sorts of cryptocurrencies and non-fungible tokens, the truth of the matter may be that it is now more important than ever before to know exactly what you are getting into, and the usage of data analytics accomplishes this in an effective fashion.