April 1st, 2022 
Cryptocurrency Analysis Through Visualizations
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Abstract—In this paper, we will examine cryptocurrencies and how digital currency has influenced modern life. We will gather data from some of the most current trending cryptocurrencies, process the data, and project visualizations for some of the coin prices. We will analyze the data using three different types of cryptocurrencies for the purpose of this paper.
Index Terms—Cryptocurrency, Coins, Analysis.
I. INTRODUCTION
Cryptocurrency is a type of digital currency that does not rely on banks to validate transactions. It’s a peer-to peer payment system that allows anyone to send and receive money from anywhere. Cryptocurrency payments exist solely as digital inputs to an online database describing specific transactions, rather than being tangible money carried around and traded in the real world. The transactions are recorded in a public ledger when you move cryptocurrency funds. In digital wallets, cryptocurrency is kept. Despite the fact that Bitcoin has been around since 2009, cryptocurrencies and blockchain technologies are still in their development in terms of financial applications, with more on the line [3]. Our main motive for writing this paper is that we have recently begun investing in cryptocurrencies, and we were unsure which coin to buy, so we decided to perform this project to have a better understanding of the market. The goal of this research is to identify some of the greatest currencies in which we may invest our funds for future profits.
II. TASKS
In this paper, we will do five different tasks for various cryptocurrencies. For our analysis, we used three different cryptocurrencies: BNB, PancakeSwap, and SHIBA INU.
• To determine all cryptocurrency price change overtime from 2017-2020
• Comparing the average difference between profit/ loss for each coin aggregated over the last month.
Profit = (close rate open rate) *100/close rate.
Loss = (open rate- close rate) *100/close rate.
• Analyzing Total number of coins distribution for each
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coin for last quarter.
• What is the proportion of number of days in which price of coin increased or decreased from 2017-2020.
. To represent the correlation between average opening and closing rates of each coin for last year.
III. LITERATURE REVIEW
In terms of external sources of determination, earlier re search indicated that 6 percent of the articles picked report economic as well as fundamental price aspects. The rela tionship of Bitcoin to other financial indicators, such as the consumer price index, inflation, stock market indexes, and exchange rates, is thoroughly studied in these publications. We discovered that legal restrictions governing Bitcoin and its link to other financial variables account for 5% of the papers reviewed. [1]
Although cryptocurrencies are in the early stages of de velopment, they challenge existing systems of currency and payment. As of January 2018, there were more than 1,500 digital currencies in existence.[1]
According to research paper [2], bitcoin prices should follow a martingale, and so cryptocurrency profits are unpre dictable. Other publications claim that under dynamic cryp tocurrency valuation models, momentum, investor attention, and cryptocurrency valuation ratios can all forecast cryptocur rency gains.
From previous research has shown that crypto currency earnings are fully contingent on the market’s current crypto currency circulation. When there is a high demand for a specific item in the market, investors’ returns rise. Similarly, as more people use cryptocurrency as their primary transaction currency, the value of their transactions will increase. To improve the investment and returns for the crypto currency, several external elements are involved, such as understanding of cryptocurrency, when to invest, and whether it is safe to invest in cryptocurrencies. [2]
IV. PROPOSED RESEARCH
We would want to add an additional analysis to the prior research works to determine when it is a good time to invest in cryptocurrency and which type of coin will offer us with the highest returns by knowing previous profits they made. To achieve so, we will need to understand the cryptocurrencies’ trends. We will learn the ideal time to sell and buy cryptocur rency by performing predictive analysis.
V. DATA
We will be using datasets from the Kaggle Top 100 cryp tocurrencies historical dataset [4] for our visualization study. We will be using last 3 years of data for these three coins BNB, Pancake Swap, and SHIBA-INU.
• Date: It represents the date of the cryptocurrency. • Open: It represents opening value of the coin for a day. • Close: It represents closing value of coin on that day. • Volume: In this data volume means number of coins in the circulation.
• Currency: It represents the type of the currency in which the coin in the market
• High: The highest point for a particular coin in a day. • Low: The Lowest point for a particular coin in a day.
VI. VISUAL DESIGN
REFERENCES
[1] Sharma, Gagan Deep, et al. ”Emergence of Bitcoin as an investment alternative: A systematic review and research agenda.” International Journal of Business and Information 14.1 (2019): 47-84.
[2] Liu, Y., Tsyvinski, A. (2021). ”Risks and returns of cryptocurrency”. The Review of Financial Studies, 34(6), 2689-2727.
[3] ”What is cryptocurrency and how does it work?”. https://www.kaspersky.com/resource-center/definitions/what-is cryptocurrency
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[4] Kash, ”Top 100 Cryptocurrencies Historical Dataset”. https://www.kaggle.com/kaushiksuresh147/top-10-cryptocurrencies historical-dataset
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