AI for cryptocurrency price prediction And other module.

ARTIFICIAL INTELLIGENCE FOR CRYPTOCURRENCY PRICE PREDICTION

AI model for analyzing the cryptocurrency market

Challenge

Crypto industry reached the peak of its popularity last year. There was a need to create useful tools for crypto analysis.

The client came to us with the startup idea to develop an AI model for analyzing the cryptocurrency market. As he has already built an algorithm for cryptocurrency auto-trading, he decided to add cryptocurrency price prediction feature to it as well.

The solution combines natural language processing, sentiment analysis, and machine learning algorithms (LSTM) to predict prices for cryptocurrency. It crunches huge amounts of data and tells you which cryptocurrencies to invest in and attempts to maximize your returns.

The product brings value to:

Solution

Cofinex AI dedicated team was in charge of developing a Cryptocurrency price prediction solution based on LSTM models and sentiment analysis of Crypto forums and channels. The model provides the prediction of 4 type of price: ‘Open’, ‘High’, ‘Low’, ‘Close’ for every Cryptocurrency individually.

The processes of price prediction model is recomputed constantly by AI Engine, potentially in a constant update loop. The model works in real time.

The model accepts any number of input parameters (the network architecture allows you to add many technical market characteristics of a selected cryptocurrency), and gives a forecast at specified prices (‘Open’, ‘High’, ‘Low’, or ‘Closed’ ) at the output. The architecture also provides a simple way to add new parameters to the line of the forecast in the future: for example, the forecast of the Volume of funds for this cryptocurrency or another indicator. No significant code changes will be required: flexible parameters are already embedded in the solution.

At present, the models work with a time step of one day, and make forecasts for 7 days ahead (forecast interval is adjustable); however, the solution can be applied to hourly input data and the forecast horizon set in hours.

The solution was deployed in Python, Jupyter Notebook deployed for demo purposes. All documentation and the code was delivered to the customer on time and according to the initial requirements.

Result

The team created the fully ready working solution for Cryptocurrency price prediction within four weeks.

The main challenges were:

Secure tracking each piece of gold electronically

Situation

In gold mining industry in USA regulatory compliance is a serious issue and is subject to multiple environmental and labor regulations. Financial institutions have to conduct a “background check” on every gold bar they are offered as, for example, a credit collateral, however, there is no secure and convenient way to conduct such investigations and make sure that:

  • The gold comes from certified gold mine;
  • the gold mine was certified at the time the gold was mined;
  • all the refineries and other supply chain participants have required certifications.

Such long-standing problems in the industry motivated open-minded entrepreneurs to found a disruptive startup with an idea to solve the aforementioned problems once and for all. The goal was to create a supply chain transparency platform capable of tracking each piece of gold electronically and in a secure manner. At the time there already were similar successful cases in other industries, for example, jewellery and medical implant tracking, which were Blockchain based solutions, which gave us insight regarding the technical solution in this case.

Solution

The basic technical complexity was that existing platforms track the origin of one product, for example, an implant. With gold, it is more difficult – the mine produces large ingots of unrefined gold, further refineries clean it and one unrefined gold ingot produces several bars of a smaller size of high-grade gold, then other institutions can melt these slivers into smaller ones, so the original “product” is crushed into components and it is necessary to track the way of each component back to that big ingot from which it went. Thus, the ready solutions were inapplicable in this case.

The problem was solved by applying the QR code to each ingot and to the derivatives of ingots and creating a custom system for registering all operations of the type in blockage (ingot A was turned into ingots B, C, D by X LTD, ingot A itself no longer exists) and all displacements (ingot B is moved from companies X to company Y with the help of transport company Z).

The system is realized with the help of Ethereum, and the logic of operations with ingots is programmed in the form of smart contracts.

Result

At the moment the system is in the MVP stage. After having received first feedback from future users, we have added features that not only solve the task of regulating the gold market, but also automate the work between suppliers and recipients of gold. So the future product will solve 2 tasks:

  • Primary: tracking the origin of gold
  • New: automation of document circulation between gold mines, refineries and other participants of this market.

The MVP was approved by the National Mining Association and (most likely) will receive investments from this organization.

A reduced risk cryptocurrency investment platform

Situation

Bitcoin is one of the most purchased virtual currencies in the world. With more than $14 billion in 24-hour trade volume in October of 2019 alone, Bitcoin trading continues to attract individual investors, as well as institutions. However, low entry barriers have led to an unstable Bitcoin index value, which has been ranging from $3,441 to $13,860 in the last two years. Some investors grew tired of continuously following the rate trends and were concerned with losing their holdings while waiting for potential rallies.

This is where our client, Ternary Intelligence, saw an opportunity. The company’s founders, both with a Ph.D. degree and passion for computational models, built mathematical algorithm, for detection of cryptocurrency market instabilities to mitigate the risks of unexpected currency behavior.

Ternary Intelligence was looking for a software development vendor to build a cryptocurrency investment platform, and integrate it with an affiliate platform. Additionally, Ternary Intelligence needed two mobile applications to accompany the platform: one for iOS and another one for Android.

The client had several pain points:

  • The timeline of the project was rigorous. Because the marketing campaign in support of the platform had already been scheduled, everything had to be developed within a month.
  • The client didn’t have enough management resources to manage the entire team, so they were looking for an end-to-end managed product delivery.

In the  years that Cofinex AI has been on the market, the company has proven to be a trusted full-cycle software development company. We are capable of covering web and mobile development, project management, QA, and DevOps as well as blockchain and data science implementation. If Ternary Intelligence had to hire one vendor for the back-end task and another for mobile application development, they wouldn’t have met the deadline. That’s why the client chose Cofinex AI for this project.

 

Solution

Successful project implementation starts with the team. Because time and quality were of paramount importance to the client, we allocated senior tech experts for integration, web platform development, and mobile app development. We did several rounds of interviews, personal meetings and workshops in Ukraine and Portugal with the representatives of the affiliate platform. This allowed us to grasp the business needs and requirements of the client before jumping into development.

As the project started scaling, Cofinex had to arrange a quick and effective onboarding process. Thanks to well-written documentation, mockup designs, and comprehensive specs, we managed to increase the effectiveness of the team and finish the development on time.

The iOS and Android mobile applications were a critical element of the customer’s market penetration strategy. Due to being extremely short on time, the Cofinex team offered to use React Native to build the mobile applications. The technology is perfect for the functionality we were going for. The client trusted us with the decision to apply React Native mobile development. 

Using React Native lets you compile apps for both iOS and Android and focus your resources on the structural components of the project. The advantages of using React Native include:

  • Developing mobile applications two times faster.
  • Saving money since you need one developer to build apps for two operating systems.
  • Less expensive and more effective maintenance.

Moreover, the hybrid mobile app development approach allowed the client to reduce the project budget by 30%.

The affiliate team is one of the biggest financial services platforms in the world, which enables transactions in any form of money and commodity. Before we even started developing the platform, a list of integration requirements was prepared. The affiliate team started working on the customization of the API. But as we began the implementation, we noticed discrepancies in the connections between platforms. Fortunately, we managed to fix the inconsistencies quickly, because we cooperated with the affiliate team directly, without client involvement.

 

Results

The client’s algorithm implemented in a user-friendly platform for reduced risk Bitcoin investment was a success. 

  • More than 10,000 users around the world use the platform. The algorithm automatically makes investment decisions for them based on the proprietary cryptocurrency market analysis.
  • Users from emerging markets love interacting with the platform because they usually have limited access to investment instruments.
  • Thanks to the platform, investment funds that don’t invest in cryptocurrencies directly due to their volatility can access the crypto trading market in a much more balanced and safe way. 

By simultaneously limiting downside risk and capturing long-term market growth, the platform developed by Cofinex has become the safer Bitcoin investment option for thousands of people in developing countries. And now that the platform is gaining popularity, Ternary Intelligence can attract larger finance players to the platform.

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