Cryptocurrencies leveraging Natural Language Processing for profit
In today’s article I’m going to introduce you to a few cryptocurrencies arming themselves with Natural Language Processing (NLP) [link]. Before I do that let’s start at the beginnig…
What is NLP anyhow?
NLP is a component of Artificial Intelligence (AI) that has many important implications on the ways that computers and humans interact. Human language, developed over a couple thousand years, has become a nuanced form of communication that carries a wealth of information that often transcends the words alone.
NLP is an important technology in bridging the gap between human communication and digital data. It gives computer programs the ability to process big amounts of data by reading text, hearing and understanding the human speech. It also helps machines learn to communicate with each other, as well as with humans, by responding in a meaningful way.
The world is becoming more and more complex and human ability of processing big data amounts is limited due to time and capacity.
Fast processing and user-friendliness, that lead to significant productivity gains, are some of the advantages of NLP.
This also applies to the crypto world as the cryptocurrency space expands rapidly and more people are trooping in to get a bite of the pie. The market is highly reactive (compared to the stock market) and trades on news events, information patterns, emotions and sentiment. Therefore it becomes increasingly difficult for investors to keep up on all of the major developments that impact their portfolios. It takes long hours searching, processing and filtering news and information on twitter, trading-view, bitcointalk threads, Reddit, and the own gut feeling. MACDs, RSIs, Ichimoku Cloud, Volume…the list of indicator is endlessly long. Otherwise, it takes a superhuman to process all this information and make the best trading decision…
It’s clear that there needs to exist better tools to keep updated in the crypto jungle. And this is where cryptocurrencies specialising in NLP in order to simlify our life’s and to increase our profits, come into the game. Let’s take a look at some of the one’s I found during my research work…
Trademindx
Trademindx [link] is a system that aims to facilitate daily trading decisions through applied NLP, sentiment analysis and machine learning algorithms. It tells you which cryptocurrencies to invest in and attempts to maximize your returns.
Built as a micro-services based distributed architecture, its primary function is to analyse large volumes of data and provide clear indicators to the trader in real-time.
The default approach is implemented using sentiment analyzer plus a maximum entropy algorithm with feedback and is currently being developed specifically for cryptocurrency applications…let’s see how the team performs on that ;-)
To gain access to the Trademindx platform you will need their issued tokens.
Vectorspace
The Vectorspace [link] platform enables dynamically generated “smart token baskets” based on user-selected trends that exist in search, social media and news. Token baskets are gaining in popularity as described in the article titled “Cryptocurrency Baskets Are Growing in Popularity” [link]. The reason they’ve included the word ‘smart’ is based on the ability for these baskets to determine for themselves whether or not to include additional cryptocurrencies or components from related baskets that may increase overall returns or minimize a loss function. Baskets that interact this way with one another will conduct these kinds of transactions between one another using the Vectorspace utility token, VAI which is also required to dynamically generate baskets.
According to their whitepaper: “A growing number of organizations offer the ability to trade a basket or group of cryptocurrencies with a single transaction. Similar to a traditional ETF (Exchange-Traded Fund), “token baskets” as they’re more commonly called, enable a fund or individual investor to spread their risk, diversify and lower volatility while maximizing gains with more safety and stability. This approach is valuable but incomplete. For example, taking the top 20 best performing cryptocurrencies and placing them in a basket or fund minimizes gains compared to enabling fine-grained custom creation of token baskets. Which groups of cryptocurrencies are beating the market? Why? What do they have in common? How strong are those relationships? Are those relationships well known and obvious or are they hidden relationships? Are the relationships numerical or nonnumerical based on concepts, context and sentiment or a combination of both?
These are the questions Crypto Discover is designed to answer. Vectorspace AI’s Crypto Discover platform is an advanced cryptocurrency discovery engine that enables a user to automatically generate a token basket or “mini-index fund” made up of cryptocurrencies that are related to trends in news, global and local searches, concepts, context, keywords, hashtags, social media, URLs and other dynamic content.”
Vectorspace looks to bes designed to help you increase your profits with other cryptocurriences by reducing risk and maximizing your gains. Their focus is on “Advanced Natural Language Processing (NLP) & Sentiment Analysis for Smart Cryptocurrency Basket Trading” and they have live products any crypto trader can use today. Their site updates every few minutes powered by their algorithms. It looks like they’re at the early stages of their pre-ICO but farther along in terms of product offerings released in addition to their patents referenced on their crowdsale page in collaboration with Lawrence Berkeley National Laboratory. Sweet!
I joined there telegram channel [link] and they mentioned they’ll be listing on IDEX near the end of the month.
CoiningAI
CoiningAI’s [link] strives to give their users an investment platform that helps them at every step of the trading process. It uses proprietary AI including machine learning, NLP and neural networks to score and contextualize social media and news sentiment about coins and combines this data with coin price changes, historical indicators, and much more. This technology helps its users build a well-balanced portfolio and tells them the best times to buy and sell. CoiningAI also helps automate coin selection, trading portfolios and provide bot developers a place to create ever more successful trading bots that their community can use. Not bad! :-)
The Coining.AI ecosystem is powered by its own utility token called XAI. It will be used for all interactions within the Coining.AI Platform.
They provide services such as
COININGKIT
A set of tools that allow users to see a variety of coin rankings and best buys.
COININGFEED
Latest crypto news and social posts curated by Artificial Intelligence at your fingertips. Additionally, follow Coins to get AI Curated Research from around the Social Web.
COININGSIGNALS
Tells its users when to buy and sell based on Artificial Intelligence and technical market indicators.
COININGPORTFOLIO
Automatically builds a coin portfolio to your risk tolerances and preferences.
COININGBOT
Customized AI Driven Bots help you maximize gains for your portfolio.
COININGMARKETPLACE
Trading bot marketplace that rewards our community for building high performing bots, gives their users more options at competitive prices.
CryptoGlobal’s Insights
Insights [link] was created over eight months by the same team that is providing sophisticated AI user experience and interface solutions to many of the world’s biggest financial institutions. The new tool uses AI technology and NLP to analyze and distill millions of global data points to help inform buying, selling and trading crypto assets.
CryptoGlobal conducted further testing of Insights with traders and analysts throughout Q1 and Q2. CryptoGlobal CEO Rob Segal says his team anticipates releasing the tool in Fall 2018 as a subscription product for traders, analysts and the global investment community.
How it Works
The tool highlights and aggregates news articles, social media posts, commentary and events in the crypto space — and uses NLP to determine evolving market sentiment on any coin.
Peculium’s AIEVE
AIEVE [link] specializes in the analysis of time series data (a series of observations over time) in order to make predictions. The AI of AIEVE chooses the right algorithm to analyze all kinds of data to provide you the best prediction of the cryptocurrency movements. She can process massive streams of both unstructured and structured data almost in real time using big data analytics platforms. She predicted the price of energy, power, and gas with more than 98% accuracy consistently [using Mean Absolute Percentage Error (MAPE) loss function]. The software is particularly experienced in the utilities sector.
AIEVE will not only tell you whether your favorite coin will increase or decrease in value, but it will also tell you how much it will change in value so you can increase the value of your wallets.
AIEVE’s proprietary algorithm is currently under development, but in its final form it will be so advanced that using NLP, it will be able to read books, novels, newspapers, states Peculium. By analyzing the spoken language of talks on the live Twitter feeds, Facebook posts, Steemit articles, bitcointalk threads etc, it will be able to analyze emotion and sentiment of the community towards a new ICO that you might be trying to invest in.
What is your opinion about crypto’s exploiting the benefits of NLP for greater profit? Are you already betting on one of them to maximize your returns?
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