Cryptocurrency Exchange Behavior Prediction

The project deals with the forecasting of cryptocurrency on a small exchange by analyzing the same behavior on a larger exchange.

The main requirement of the project was to create a platform that would fulfill the desired prediction and, in addition, enable the trading of cryptocurrencies and interface with the exchanges.

In order to produce such a platform, we started with a simpler task and created a platform that interfaces with the stock exchange interface (Binance, one of the largest in the market) and examines whether there is an option for trading arbitrage or triple arbitrage. On the recommendation of the supervisor and after our research, it was decided to return to the original goal.

We decided to use an open source project called CCXT because of its up-to-date, widespread and interfacing with most of the exchanges known to us in Python.

The final platform seems to meet expectations and indeed predict the behavior of the small stock exchange and also allows the user to change the algorithm to better suit the type of trade and run past information to try without real money risk.

We learned a lot about the distributed currency market and although trading in cryptocurrencies is not uncommon, it has not reached the level of realization on the older and more accepted stock exchanges that trade in stocks, indices, bonds, etc.