There are basically 3 ways by which traders perform the analysis of the cryptocurrency market. One is Technical Analysis, second is Fundamental Analysis and third is Sentimental Analysis . To avoid the chances of any risk and loss, traders first analyze the price trends of the crypto market.

The analysis helps the traders to predict the right time for trading. They know whether or not to buy or sell the cryptocurrency. Let us understand how sentimental analysis will help in predicting the prices of crypto.

Sentimental Analysis
Sentimental Analysis is the analysis where traders, before investing, study the thoughts and opinions of well-known people in the crypto market such as influencers, regular traders, investors, etc. The reviews, comments, thoughts, and opinions play a vital role in deciding and predicting the crypto price in the market. These are known as Sentiment Data and analyzing os this data is known as Sentimental Data Analysis.


Methods of Analyzing Sentiment Data
The various methods to analyze sentiment data are as follows:

Document-level of sentiment analysis-

People’s thoughts and opinions are their individual expressions. It describes their thoughts or feelings towards a thing. Many blogs and websites let people express their opinions through reviews and comments. The opinions of the people can be simply classified into Positive or Negative to predict future price movements.


Sentence-level of Sentiment Analysis-

This analysis gives a more explained view of different opinions written in the document about the object.

In this level, the reviews and comments which contain no opinion are filtered out. Then it is decided whether the opinion given on the object is positive or negative.

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