Coinscious Demonstrates Value of Data in Latest Mobile Payment Trend

February 25, 2019         By: Steven Anderson

Anyone who’s been a cryptocurrency trader lately knows that this is a market where “volatility” is almost an understatement. Anyone who bought bitcoin in 2017 knows that much firsthand. The key to success here in this newest mobile payments technology is data, and Coinscious recently dropped word our way about just how important accurate data can be in building cryptocurrency trading models.

Basically, Coinscious has been working to build both high-frequency and quantitative trading models for the crypto market, and these models so far have yielded excellent results. What it has demonstrated more than anything in this is that the better the quality of data going into the models, the better the ultimate quality of the results. With better quality data, the report noted, users can get better appraisals of execution prices, overall behavior, and the ability of the model to actually match the market.

While many traders are using massive quantities of data—which is certainly a good start—the quality of the data used is often overlooked. Quantity is not an acceptable substitute for quality, as the models demonstrate. In fact, Coinscious measured its own error rates against the rates of several different exchanges—including leaders in the field like Bittrex and Coinbase Pro—and ultimately discovered that Coinscious data was better on several fronts. It was not only the most accurate for bitcoin, Ethereum and Ripple, but it was 38 percent better on all fronts than Kaiko data.

This demonstrates how important accurate data is in model building in general, and particularly in the cryptocurrency market. After all, in a market this volatile, being able to effectively track price migration and similar matters is a recipe for improved success. While it’s important to have the right kind of trading tools as well as the sharpest traders to be able to make use of the models effectively, the lack of an accurate model can hamstring these elements and reduce their overall effectiveness.

With major trading firms looking to get in on the cryptocurrency market, the development of accurate models will be vital to these firms throwing their hat in the ring. Coinscious’s model is starting to look like one of the best around, and that could well help it out going forward as well.