How digital assets are revolutionising financial data analytics

An increasing number of companies worldwide are using bitcoin and other digital assets for a host of investment, operational and transactional purposes.

It is of interest for enterprises to firstly explore the benefits of data analytics to consider as they determine whether and how to use digital assets. Despite so many industries capitalising on the popularity of cryptocurrencies, the market still has pros and cons to its use.

Using a data analytic system can help uncover trends by looking back at historical data, which crypto investors can use to make informed decisions about where their currency is going in the future.

Data analytics tools

Data analysis can reveal interesting trends that the average investor is unlikely to spot and interpret. Embracing this form of data analytics will give investors a competitive edge over those who make investment decisions based on intuition and incomplete data.

Fortunately, big data analytics can solve a plethora of issues, such as helping crypto users better identify the future of the market and the value of the thousands of digital currencies available to purchase and trade. That is because data analytics tools can help uncover trends by reviewing the historical data, which crypto investors can use to make informed decisions about where the crypto market is going.

Dashboards are one of the best data visualisation tools in the analytics market because they help bring visibility to investments and finances. When someone connects their crypto wallet to a dashboard, they are able to track their performance in real-time and look at how much they have invested in different cryptocurrencies.

Crypto dashboards also allow people to study ROI, acquisition cost versus profit/loss, and the exchange rate of their cryptocurrencies. Examining a particular cryptocurrency’s exchange rate history will inform you of how stable the coin is compared to others. This is a great example of the power of data analytic tools.

Big data analytics is an emerging market, and many industries have started adopting its tools and techniques to monitor their financial performance. The cryptocurrency industry, in particular, is one market that can benefit from data tools like dashboards and methods like descriptive and diagnostic analytics to predict current and future trends.

Another benefit of using data analytics in the cryptocurrency industry is the potential to improve regulatory compliance. One of the challenges facing the industry is the lack of uniformity and consistency in regulation across different jurisdictions. Data analytics can help companies identify and monitor transactions that may be subject to regulatory requirements and ensure compliance with applicable laws and regulations.

For example, by using data analytics, companies can analyse the transactional patterns of their customers and identify any suspicious activity that may require further investigation. This can help prevent fraud, money laundering, and other illegal activities. Additionally, companies can use data analytics to track their own compliance with regulatory requirements, such as reporting obligations and customer due diligence.

Overall, the adoption of data analytics in cryptocurrency has the potential to bring a range of benefits, from improving investment decisions to enhancing regulatory compliance and much more. As the industry continues to evolve, data analytics will become an increasingly important tool for companies looking to succeed in this fast-paced and complex market of today.

Jadd Elliot Dib is the founder and CEO at Pangaea X

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