Demystifying Cryptocurrency Analysis by unleashing the power of OpenAI for your portfolio management

Discover how OpenAI can transform your investment strategy. From data extraction to insightful analysis, we’ll show you how to harness the power of artificial intelligence to optimize your portfolio.

Introduction

A few years ago, I delved into the fascinating world of cryptocurrencies and found myself captivated by the possibilities they offered. Coming from an analytics background, the crypto market seemed like a paradise for business intelligence enthusiasts like myself. However, I soon realized that keeping up with the ever-changing market was a challenge that took a toll on my mental well-being.

That’s when inspiration struck — I decided to explore the potential of ChatGPT as a solution to simplify my daily analysis. By leveraging the power of natural language processing, I could receive concise summaries of market trends without being overwhelmed by constant alerts and triggers.

In this article, I’ll share my journey of using ChatGPT to enhance my decision-making process and regain peace of mind in the dynamic world of crypto.

Setting the Objective

When managing a cryptocurrency portfolio, staying on top of market trends, monitoring performance, and making informed decisions can be daunting. Our portfolio management app aims to simplify this process and provide users with a comprehensive toolset for effectively managing their investments.

By leveraging advanced data extraction techniques and real-time market data, our app aims to streamline portfolio tracking and analysis. Users can easily input their holdings, view up-to-date market prices, and track the performance of their investments over time. The app also incorporates predictive modeling and analytical insights to provide personalized recommendations and alerts tailored to each user’s unique portfolio.

Code structure and libraries

Here’s a summary of the key components and their roles in our portfolio management app:

• CoinMarketCap: We leverage the CoinMarketCap API to fetch the latest information about cryptocurrencies, including prices, market capitalization, trading volumes, and more. This ensures that our app has access to real-time and accurate data from the cryptocurrency market.
• Supabase: We use Supabase as our data storage solution. Supabase is a flexible and scalable platform that allows us to securely store and manage portfolio data, historical prices, and other relevant information. It provides us with a reliable backend infrastructure for data persistence.
• Pandas: We utilize the Pandas library for data manipulation and analysis. Pandas offers powerful data structures and functions that enable us to clean, transform, and process the fetched data from CoinMarketCap and Supabase. It allows us to perform calculations, filter data, and organize it in a structured format for further analysis.
• OpenAI: OpenAI’s GPT models play a crucial role in our app. We leverage the OpenAI API to generate insightful guidance and analysis based on the data manipulation performed with Pandas. The OpenAI models can provide valuable recommendations, market trends, and predictive insights to help users optimize their portfolios.
• Streamlit: We utilize Streamlit, a user-friendly Python library, to create an interactive and visually appealing user interface for our app. Streamlit allows us to build interactive dashboards, visualizations, and forms for users to input their portfolio details, track performance, and receive analysis results. It simplifies the process of creating a seamless and engaging user experience.

By integrating these components, we create a comprehensive portfolio management app that leverages CoinMarketCap for real-time market data, Supabase for secure data storage, Pandas for data manipulation, OpenAI for intelligent guidance, and Streamlit for an interactive user interface. This combination enables users to track their portfolios, analyze market trends, and make informed decisions based on the latest data and insights.

How the app is working?

In the Streamlit app, you can perform various actions related to managing and analyzing your cryptocurrency portfolio. The app looks like this:

Here’s what you can do:

• Input Portfolio Information: You can enter the details of your cryptocurrency holdings, including the cryptocurrency name and the actual quantity you own.
• View Portfolio Table: The app displays a table showing your portfolio’s cryptocurrency holdings, along with the corresponding quantities.
• Analyze Portfolio: By clicking the “Analyze Portfolio” button, the app generates a comprehensive analysis of your portfolio based on financial trends, market performance, and predictive modeling. This analysis is designed to provide actionable insights to help optimize your portfolio.
• Receive Guidance: The app utilizes OpenAI’s capabilities to offer guidance and recommendations specific to your portfolio. This guidance is based on the analysis performed and can help inform your investment decisions.

Overall, the Streamlit app offers a user-friendly interface to manage, analyze, and optimize your cryptocurrency portfolio using advanced data analysis techniques and guidance from OpenAI.

Can you show me an example of guidance?

Based on the following portfolio:

Please find the guidance provided:

Overall Market Analysis:

Overall, the market appears to be relatively stable with prices generally remaining the same or increasing slightly. Volume is also relatively consistent with some slight fluctuations. Market capitalization is also relatively consistent, with some slight increases and decreases.

Cryptocurrencies with No Necessary Adjustments from our portfolio:

Given the data provided, the cryptocurrencies that do not require any adjustments from our portfolio are Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). All three of these cryptocurrencies have seen relatively consistent prices and market capitalization, with only slight increases and decreases.

Cryptocurrencies to Convert from our portfolio:

Given the data provided, the cryptocurrencies that may require conversions from our portfolio are Cardano (ADA), Binance Coin (BNB), USD Coin (USDC), Tether (USDT), and XRP (XRP). All five of these cryptocurrencies have seen relatively consistent prices and market capitalization, but have seen larger fluctuations in volume. This suggests that these cryptocurrencies may be more volatile, and thus may require conversions from our portfolio in order to minimize risk.

And what is the result?

In the upcoming 30 days, I will allow my app to manage my portfolio, and I will compare its results with a separate portfolio that I haven’t made any changes to. This exclusive test provided valuable insights into the app’s capability to navigate the unpredictable cryptocurrency market and make well-informed decisions using real-time data and advanced analysis.

The experiment aimed to determine whether the app’s strategies and recommendations could outperform a passive approach, thereby revealing its potential as a valuable tool for managing portfolios. The goal of this test is to determine whether or not the app can assist in defining the appropriate portfolio management.

So please keep an eye on this space to find out whether or not AI can assist us in managing complex and volatile markets.

Stay tuned