Prediction of Dirty Cryptocurrency Using Machine Learning Models

Predicting the value of cryptocurrencies is essential due to their significant impact on the financial market and investment strategies. This paper evaluates the performance of three machine learning models: K-Nearest Neighbor (KNN), Linear Regression, and Random Forest Regression in predicting the value of various cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Binance Coin (BNB)). Important metrics such as R-squared (R), accuracy, precision, recall, F1 score, Mean Squared Error (MSE), and Mean Absolute Error (MAE) are utilized alongside graphical comparisons of actual and predicted price categories. The analysis reveals that Random Forest Regression performs best for Bitcoin, while KNN is more suitable for Ethereum, BNB, and Litecoin. Linear Regression models tend to deviate more from actual prices. Both KNN and Random Forest Regression demonstrate a significantly closer relationship to real price categories. This study underscores the importance of model selection, highlighting the superior accuracy of KNN and random forest in predicting cryptocurrency prices. Future work could explore the integration of more advanced models and the impact of additional features on prediction accuracy.

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Publication Details

Journal
Advances in Economics Management and Political Sciences
Published
2024-12-19
DOI
https://doi.org/10.54254/2754-1169/2024.ox18494
Primary Topic
Blockchain Technology Applications and Security
Type
article
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article

Prediction of Dirty Cryptocurrency Using Machine Learning Models

Lina He
Advances in Economics Management and Political Sciences
Blockchain Technology Applications and Security
article

Prediction of Dirty Cryptocurrency Using Machine Learning Models

Lina He
article en

Abstract

Predicting the value of cryptocurrencies is essential due to their significant impact on the financial market and investment strategies. This paper evaluates the performance of three machine learning models: K-Nearest Neighbor (KNN), Linear Regression, and Random Forest Regression in predicting the value of various cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Binance Coin (BNB)). Important metrics such as R-squared (R), accuracy, precision, recall, F1 score, Mean Squared Error (MSE), and Mean Absolute Error (MAE) are utilized alongside graphical comparisons of actual and predicted price categories. The analysis reveals that Random Forest Regression performs best for Bitcoin, while KNN is more suitable for Ethereum, BNB, and Litecoin. Linear Regression models tend to deviate more from actual prices. Both KNN and Random Forest Regression demonstrate a significantly closer relationship to real price categories. This study underscores the importance of model selection, highlighting the superior accuracy of KNN and random forest in predicting cryptocurrency prices. Future work could explore the integration of more advanced models and the impact of additional features on prediction accuracy.

Advances in Economics Management and Political SciencesVol. 127(1)
University of Essex (GB)
Life in Land
Openalex Percentile: Top 63%
Blockchain Technology Applications and Security
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