We are living in a money driven world, but what if someone told us that there is a kind of money which is not real, doesn’t have any physical existence and is not governed by any central authority. This forms the basic concept of what is called a “Cryptocurrency”. A cryptocurrency can be defined as a digital asset which uses strong cryptographic techniques for security purposes and can be used as an exchange medium like electronic money. Nowadays there are a lot of cryptocurrencies which are present in the market like Bitcoin, Litecoin, Ether and many more (Bitcoin as the most highlighted one).
The foundation of crypto currency is based on the concept of Blockchain. As the popularity for the cryptocurrency increased so did the market and financial environment for it. These are termed as the “Currency of the future”. The new gained popularity helped it to make its mark in the financial world and seeing the future potential in the crypto assets, many people started investing in it. Cryptocurrencies took the trading world by storm and become the new fad in the trading and market sector. As a result, the prices of cryptocurrencies were off the charts and before anyone could realize, investing in cryptocurrencies became the new infatuation of the society.
With the constantly increasing share values, the cryptocurrencies made their mark on the investment sector. But all is not well for cryptocurrencies,due to the distributed and decentralized nature of cryptocurrencies cause a price fluctuation which in turn can cause the investors to lose their money if the investment in this sector is not made wisely and without full introspection of the current scenario. The investors can have a hard time forecasting the growth of this new emergent concept as it’s not fully legalized also.
All these factors together hinder the growth of cryptocurrencies. Along with this,different varieties of cryptocurrencies which have also emerged over the period of time can make a novice investor dubious of whether to invest in this sector and in which cryptocurrency to invest so that a guaranteed stability and constant growth can be achieved by the investor. Our proposed solution to the above stated problem consists of a program that helps to assess the future scenarios regarding the cryptocurrencies by estimating cryptocurrency prices in the near future using Machine Learning models. The transactions involving the cryptocurrencies form a time series problem that can be solved with machine learning techniques.
The steps to solving the problem include first of all getting the dataset then the test-train split of data for the machine learning part, after that building a model for the same and in the end using the trained model to predict the left out test sets and future recommendations.