Cryptocurrency price prediction using traditional statistical and machine‐learning techniques: A survey

Abstract

Abstract Cryptocurrencies are decentralized electronic counterparts of government‐issued money. The first and best‐known cryptocurrency example is bitcoin. Cryptocurrencies are used to make transactions anonymously and securely over the internet. The decentralization behavior of a cryptocurrency has radically reduced central control over them, thereby influencing international trade and relations. Wide fluctuations in cryptocurrency prices motivate the urgent requirement for an accurate model to predict its price. Cryptocurrency price prediction is one of the trending areas among researchers. Research work in this field uses traditional statistical and machine‐learning techniques, such as Bayesian regression, logistic regression, linear regression, support vector machine, artificial neural network, deep learning, and reinforcement learning. No seasonal effects exist in cryptocurrency, making it hard to predict using a statistical approach. Traditional statistical methods, although simple to implement and interpret, require a lot of statistical assumptions that could be unrealistic, leaving machine learning as the best technology in this field, being capable of predicting price based on experience. This article provides a comprehensive summary of the previous studies in the field of cryptocurrency price prediction from 2010 to 2020. The discussion presented in this article will help researchers to fill the gap in existing studies and gain more future insight.