The cryptocurrency industry is ever booming which has surpassed the global market cap of almost $ 3T from a humbling $300B+ in 2020, equaling world’s 8th largest economy with an average 24 Hours trading volume of over 112 Bn. This can most certainly be attributed to the rapid adoption of crypto at a global scale. But a few people in this field know how to trade professionally. Majority of the retail traders do not even know the level of risk they are exposed to and yet thousands keep entering the crypto arena for financial goals.
It is very evident to note that cryptocurrency industry is nothing like the traditional stock markets. This entity is majorly unregulated and runs 24/7 without a break. There are new altcoins, assets, and defi protocols emerging consistently with which there is a plethora of information floating around and it is so overwhelming that a trader will always miss out on either the data or the time or most likely both !
One very crucial factor that affects this industry is that it is largely driven by sentiments. And the data around these sentiments is staggering because the emotional biases of the traders have an enormously negative impact on their portfolios. The market is dominated by retail traders and investors - most of who are not very well- versed in traditional financial markets and are unable to undertake heavy financial analysis. While the institutional investors are moving into the crypto markets gradually, it is undeniably true that a considerable amount of positions within the markets are held by users who are thinking of getting in early, and getting out higher when they have made their fair share. Moreover, wherever financial institutions have entered, they have majorly focused on lending/borrowing markets, given their lucrative yield.
Most of these institutional investors who are entering the crypto markets are largely focused on investing in the more safer markets, such as lending/borrowing as they offer high returns without the risk of volatility that most coins offer. Therefore, the crypto market is largely driven by retail traders. Given how nimble they are, the volatility is mostly driven by "the next big coin going to the moon". There is, thus, a need to use tools that track and analyse the rising and falling sentiments within the market so users are at a much better vantage point when it comes to planning their investment and creating their portfolio.
And that is why at some point of time all retail traders have asked or will ask this question to themselves : “How will I make the most out of an unregulated entity which is growing so rapidly and is largely driven by market sentiments ? How will I hedge my exposure in this burgeoning crypto market?”