Crypto Portfolio Optimization with Gemini LLM AI: A Complete Approach

As a seasoned data scientist with a passion for both the cryptocurrency world and advanced Python programming, I’ve spent countless hours navigating the complex landscape of digital asset investments. In this tutorial, I will explore how I developed a robust system for optimizing cryptocurrency portfolios. We will be using advanced ython techniques and the powerful language model, Gemini. My goal was to create a data-driven approach that goes beyond simple buy-and-hold strategies. It leverages cutting-edge tools to make more informed investment decisions.

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Table of Contents

• Data Acquisition and Preprocessing: Implementing automated data retrieval from multiple cryptocurrency exchanges using APIs and cleaning/transforming it for analysis.
• Gemini Integration for Market Sentiment Analysis: Using the Gemini API to extract relevant information from news, social media and forums and perform natural language processing for sentiment scoring.
• Risk Assessment and Modeling: Defining and calculating portfolio risk metrics like Value at Risk (VaR), Conditional Value at Risk (CVaR) using historical data and Monte Carlo simulations.
• Correlation and Covariance Analysis: Computing the correlation matrix of various cryptocurrencies…