Examining historical asset performance data is one of the most important and necessary things to do in the context of cryptocurrency. I'm almost ready to start my career as a data analyst, and I'd love to see how well I can extract information from the binance dataset using the methods of analysis I learnt.
Please feel free to leave a review or a remark to assist me not only become a better writer but also to develop my data abilities in the crypto field. The following are the main variables that I would be taking into consideration in order to carry out this analysis:
Concerning the Data, Enhanced Trading Activity, Volume of Trade, Volatility for a given Time Frame, and Analysis of Price Trends.
Concerning the Data
I want to make it very obvious that the source of this dataset was kaggle.com, a data science platform that helps analysts explore the universe of data. I believe Kaggle is the best place to obtain datasets if you're interested in using data analysis to understand your expertise. Microsoft Excel will be my tool of choice for visualizing trends.
The information includes 1442 BNB price entries between 2017 and 2021. Crucial columns that might yield valuable insights through research are its market capitalization, open, close, high, and low values.
A spreadsheet in Excel was filled with data, Below is the Excel file's URL. https://drive.google.com/file/d/1xAMmBETaTs5MXfj9AK-8hBByLMw8sT9Q/view?usp=sharing
Enhanced Trading Activity
Market capitalization may be used to display rising market activity and identify its trend. The following is the outcome of plotting the dates against the market capitalization.
The market activity hasn't changed significantly from 2017 and 2020. There is a noticeable amount of market activity at the 2021-discovered rectangular site. This demonstrates that there were more purchases and sales, which led to a rise in trade volume. It demonstrates that traders, investors, and the general market participated in its transaction with more attention. The trade volume may be seen to support this claim.
Volume of Trades
The total amount of BNB that has been purchased and sold on all exchanges over the course of a day is shown by the trading volume. The market capitalization chart above and the trade volume data by date are related. Significantly important actions commenced in 2021.
Volatility for the Given Time Frame
In the context of cryptocurrencies, the notion of volatility is crucial since it aids in estimating price swings over a specified time frame. Determining the high and low variables is crucial in assessing the volatility of BNB. Rapid volatility graphs clearly show which assets are not worth investing in because of their large price fluctuations, which indicate more risk and possible returns.
Regarding the price of BNB, however, it is not the case.
The volatility was computed by extracting both variables into a separate sheet. The difference between the two variables may be calculated using the function as shown below.
Here is a link to the extracted data.
https://docs.google.com/spreadsheets/d/1dzCaMq9RKOPxUgcAy1CVoHHY2QjglxG4/edit?usp=sharing&ouid=106565938968227330643&rtpof=true&sd=true
A line graph was employed to illustrate the trend of highs, lows, and volatility. According to the visual, BNB had minimal volatility from 2017 to 2020 before experiencing moderate volatility in 2021.
** Analysis of Price Trends**
The open and close prices of BNB can be used to analyze price trends. To do this, I also extracted both variables into another spreadsheet, which you can access by clicking the link below.
https://docs.google.com/spreadsheets/d/1MHUhjPfMF7ktpZnmnJZhS5VcKp4tORWW/edit?usp=sharing&ouid=106565938968227330643&rtpof=true&sd=true
It is evident from the data that there is an upward trend in 2021 since the closing price is higher than the open price.
The aforementioned study has provided insights into BNB's performance from 2017 to 2021. The data revealed that there was a rise in market activity in 2021; the transaction volume chart further supported this finding. Furthermore, given the closing price throughout that time period is higher than the open price, the price trend of BNB suggests an upward trend. The volatility was also well-determined, demonstrating a rise from a low to a moderate volatility.
Thank you for stopping by my site. I would appreciate hearing your thoughts on this discovery so that I may continue to hone my new abilities. In my upcoming piece, I'll also tackle making an interactive dashboard.
Have a great week, please.
Click here to have access to the entire files used for this analysis
https://drive.google.com/drive/folders/1OhmPengkX4a7J3R34B9WHN4uH8mLf32r?usp=sharing
Posted Using InLeo Alpha
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