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Prediction Of Cryptocurrency Prices Using LSTM, SVM And Polynomial Regression

Author

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  • Novan Fauzi Al Giffary
  • Feri Sulianta

Abstract

The rapid development of information technology, especially the Internet, has facilitated users with a quick and easy way to seek information. With these convenience offered by internet services, many individuals who initially invested in gold and precious metals are now shifting into digital investments in form of cryptocurrencies. However, investments in crypto coins are filled with uncertainties and fluctuation in daily basis. This risk posed as significant challenges for coin investors that could result in substantial investment losses. The uncertainty of the value of these crypto coins is a critical issue in the field of coin investment. Forecasting, is one of the methods used to predict the future value of these crypto coins. By utilizing the models of Long Short Term Memory, Support Vector Machine, and Polynomial Regression algorithm for forecasting, a performance comparison is conducted to determine which algorithm model is most suitable for predicting crypto currency prices. The mean square error is employed as a benchmark for the comparison. By applying those three constructed algorithm models, the Support Vector Machine uses a linear kernel to produce the smallest mean square error compared to the Long Short Term Memory and Polynomial Regression algorithm models, with a mean square error value of 0.02. Keywords: Cryptocurrency, Forecasting, Long Short Term Memory, Mean Square Error, Polynomial Regression, Support Vector Machine

Suggested Citation

  • Novan Fauzi Al Giffary & Feri Sulianta, 2024. "Prediction Of Cryptocurrency Prices Using LSTM, SVM And Polynomial Regression," Papers 2403.03410, arXiv.org.
  • Handle: RePEc:arx:papers:2403.03410
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    File URL: http://arxiv.org/pdf/2403.03410
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    Keywords

    cryptocurrency; forecasting; long short term memory; mean square error; polynomial regression; support vector machine;
    All these keywords.

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