Finance which is based on decentralization is evaluated by analysis. This also covers part of econometrics. Econometrics is the use of statistical data to provide an interpretation.
I will be sharing two three major guidelines to crypto currency analysis affiliated to Leofinance token. But before doing so, it is important to have the following requirements.
-A laptop (preferably)
Statistical analysis software (SPSS, python, R, Strata, Excel e.t.c)
Test to be carried out as regards Leo finance token And Interpretation.
I will elaborate on the following points in brief.
A laptop (preferably)
A laptop is needed for most of this activity though you can still use mobile but I am not used to mobile interface.
I rather use my personal computer while I access those applications.
Statistical analysis software (SPSS, python, R, Strata, Excel e.t.c)
You will definitely need data analysis software’s such as Spss, python, tableau, R, Strata and SAS for your analysis of data.
To carry out this, you must have a first class experience in handling those softwares.
I make use of SPSS software.
SPSS stands for statistical package for the social sciences. It is used to collect social science data such as crypto price, volume, create charts, analyze and interpret data. You can even visualize some parts of technical analysis using these applications.
Test to be carried out as regards Leo finance token And Interpretation
Knowing the type of test to carryout depends on your area of concern. If you wish to check crypto prices, you can make use of the bar charts, box plots and the rest.
Below are series of test that I carried out using SPSS application.
Boxplot
A box plot is a rectangular diagram showing the range of numerical value for a variable. Below is a box plot showing leofinance price.
This actually indicates the price range of wleo token within a specific period.
Histogram
Histogram is used to indicate if the data you collected are normal. A data is normal and hence can be valid when it is been drawn from a population.
Below is a histogram chat showing the price of Leo token.
When its forms a perfect “n” curve, it indicates that the data for leo finance price is normal.
But when the “n” curve mostly is concentrated on the left or right then it isn’t a normal data and hence must be transformed if it was actually sample drawn from a population.
Correlation Test
Correlation test is meant to enquire about the type of relationship that exist between crypto assets. There are some investors which may want to go for multiple investments in their portfolios.
It is essential to carryout correlation test to see if some variables are actually related to another. Meaning as the price of one variable increases, does it affects another? And how strong is its relationship?
Below is an analysis of correlation between leofinance token and bitcoin.
It shows that bitcoin has a strong positive relationship with leo finance token(Wleo).
A positive relationship means that as the price of bitcoin pumps that of leo experiences same and vice versa.
You can find this under the coefficient column.
Prediction analysis
Prediction analysis in SPSS will estimate the price of a crypto asset when considering the price of another. This is possible by presenting a linear coefficient model for the analysis.
More other advanced analysis can be carried out using other data analysis software such as python, R, Strata, SAS, Numpi, Tableau and the likes.
This makes the prediction more reliable as compared to the future value. This is where technical analysis heavily relies.
They can answer the question, what will be the price of bitcoin in the next three months if some factors such as wars climatic change and global economic factors are considered.
This article has been able to present the summary of how important it is for crypto analyst to carryout find out certain test such as price features, correlation analysis, an also prediction analysis.
I call on @forexbrokr to please comment on the format of this content.