Newscrypto Launched its AI Price Prediction Tool on 5 May 2021
The long awaited sentimental analysis tool for NewsCrypto is on the market now. After several months, of its development, the NewsCrypto platform announced the launch of the all-important tool on 5 May 2021.
The essence of this innovation cannot be over-emphasized considering the volatility of cryptocurrencies. A trader should make informed decisions.
How does it work?
Basically, the role of the sentimental analysis tool is to aggregate the feelings and opinions of the majority of traders or crypto enthusiasts on the performance of a specific cryptocurrency, say BTC, NWC or ETH.
Specifically, the AI Sentiment price prediction tool estimates the price of a coin or token for the next 24 hours. This prediction is based on the feelings and views extracted from tweets that mention that cryptocurrency.
The sentiment data has proved to be the best indicator of price movements of various cryptocurrencies. The NewsCrypto AI price prediction tool has an accuracy rate of between 70% and 90%.
The team is working to improve on several fronts. First, it aims to increase the prediction period maybe up to a month. What a wonderful scenario that would be!
As a trader I anticipate its efficiency. Currently, this tool is the best on the market and it would be foolhardy for any trader to ignore it. Better be warned.
Since its inception on 5 May 2021, I have been using this tool, resulting in improved trades.
Also as part of its development, the team is working hard to gather sentiment of people from YouTube and podcasts. But, does this tool really bring a change in a trader’s life?
Importance of sentiment analysis
For you to understand, the effectiveness of the NewsCrypto sentimental analysis tool, let’s analyse the role of sentiment analysis in trading.
Sentimental analysis is one of the three tools used in trading. The other two tools are technical analysis and fundamental analysis. A successful trader should have the right information on these three aspects.
Technical analysis: This deals with the analysis of statistics and trends of specific cryptocurrencies in order to make trading decisions, such as entry or exiting a position. Looking at its weight, technical analysis is the primary tool used by trader.
Fundamental analysis: This involves studying the broader economic factors that affect the price of a cryptocurrency. Some of the broader factors include interest rates, the state of the economy, and the company’s economic well-being.
The order of importance of these three tools in executing successful trades is:
1. Technical analysis
2. Sentiment analysis
3. Fundamental analysis
The truth is a trader should understand these three aspects.
Before the coming on board of sentimental analysis tools, traders used to spend long time reading related news, watching related videos on YouTube and surfing the sentiment of the market on social media platforms such as Twitter and Facebook.
Competition
Trading is about competition in making the right decision. This is because some will pull down prices through selling a cryptocurrency, while others pull it up by buying it. Therefore, those who make the best decisions win trades.
Point: People who have ample information on the market’s sentiment make the best trading decisions.
Good news: A reliable sentimental analysis tool exists. Search no more, visit NewsCrypto now.
