Don’t Know Which Projects To Invest In? Data Analytics Can Help

Due to the meteoric ascent of both cryptocurrencies and NFTs (non-fungible tokens), investors are frequently confronted with a recurrent dilemma. This predicament is sometimes rooted in the difficulty to determine whether projects are worthy of financial investment. After all, there are a plethora of different cryptocurrencies available at this point, and new NFT projects appear to be launched on a weekly basis on average.

As a result of this, there is an obvious need to know whether projects are viable, and data analytics plays a role in fulfilling this need. This post will also explore how Defy Trends is utilising data analytics and artificial intelligence to assist investors in making decisions that are better informed.

What exactly are data analytics?

To put it another way, data analytics can be seen as the science of analysing raw data, the results of which can then be utilised to create conclusions that are illuminating and supported by research. In the context of bitcoin investments, this results in the existence of two distinct kinds of data analytics, which are respectively referred to as on-chain and off-chain.

On-chain data analytics frequently entails the examination of cryptocurrencies in addition to any pertinent information that takes place on a particular public blockchain network. This may comprise data about to transactions like as the sending and receiving addresses, tokens moved, amount and fees, and maybe other information. Block data, which may include rewards, timestamps, and miner fees, are also included in the on-chain data. Therefore, in on-chain analysis, the goal would be to employ a method that is not emotive and is not reliant on feeling as the guiding principle.

A comparison can be made with off-chain data analytics, which entail evaluating sentiment. This might include current trends, the goings-on in various social media outlets, and other such things. The evaluation of information that has not been recorded on a blockchain is the focus of off-chain analysis, which stands in stark contrast to on-chain analysis, which may also be referred to as blockchain analysis. This distinction is one of the most important differences between the two types.

How is Defy Trends helping out?

It would appear to be common sense to use data analytics as a tool to enhance decision making, but just a small fraction of those working in this sector really do so. Defy Trends is working to alter that, and its all-female team has already had some success when they correctly forecasted the market correction that occurred in September as well as the crash that occurred in May.

Defy Trends is a user-friendly, all-in-one NFT and crypto intelligence platform that enables individual as well as institutional investors to make informed, data-driven investment decisions. Defy Trends was built with the goal of making the platform accessible to everyone. The Defy Trends platform includes, among other things, on-chain analysis, sentiment analysis, fundamental analysis, news aggregation, AI projections, in-depth instructional resources, and crowd-sourced research.

Therefore, the purpose of the platform is to make available to each and everyone investing advice that are supported by empirical data and knowledge, with the final goal of bringing about financial success for the general populace. The intention is to disseminate cryptocurrency technology so that it may be used by anybody, anywhere in the world, and in such a way that all parties involved can reap the benefits. This is consistent with the team’s principles and goals, which are based on the overriding notion that everyone possesses the potential as well as the natural right to be an informed cryptocurrency trader. This is why this decision was made.

In terms of the manner in which it is assisting, Defy Trends wants to get rid of the obstacles that are associated with getting involved with cryptocurrency and NFT trading. Additionally, it wants to get rid of common problems such as having an excessive number of options when it comes to investments, excessive marketing and the influence of social media to generate “hype,” fragmented information, and inaccessible as well as inadequate educational resources. The primary focus of Defy Trends is on business-to-business and business-to-consumer clients, and there are currently more than one thousand users that have subscribed to the beta version of the platform.

The future of investing

If the year 2021 is any indication, then it has become abundantly evident that cryptocurrencies and NFTs are not going away any time in the near future. Although there are other companies in the same vein as Defy Trends, such as Dune Analytics, Messari, Delphi Digital, and Nansen, which is focused on artificial intelligence, the overarching and consistent theme is that data analytics are gaining more popularity in tandem with the rapid expansion of the industry.

In addition, investors continue to spend money on a variety of cryptocurrencies and non-fungible tokens, so the fact of the matter may be that it is now more important than it has ever been to know exactly what you are getting into, and the utilisation of data analytics is an effective way to accomplish this goal.