Ultimate Cryptocurrency Investing Guide: Financial Modeling

If you want to become a professional cryptocurrency investor and trader, spreadsheets are going to help you increase your efficiency and rate of returns. This ultimate cryptocurrency investing guide will help you develop key financial models in the various cryptocurrencies beyond bitcoin. Reading and implementing these trading strategies will take you from beginner to advanced.

These tools will provided below lower the barrier to entry – people without engineering or algorithm skills can make more intelligent trades and investment moves.

So what’s the catch? What’s in it for me? The purpose of this site is to increase volume for ALL cryptocurrencies. This creates a higher form of stability, growth, and adoption worldwide. No matter what you yourself are trading in, it helps my own investments in stability and growth. At this point in time, adoption is goal number one.

Nothing in life is free – this requires a paid service to fully implement, at $15/month. In addition, can donate in return for providing these resources. Private investment brokers can make between $5 and $40 per trade for their clients. Take that as you will.

BTC donations: 15NwePLt17b5fXuQTGGVqRbjA89B9BrP28

ETH donations: 0xfea5AF5132bC5c382936CD1A10C0b5351cfdA716

LTC donations: LR9eaC4g6E8AWHaTmiiBVayrcq7LBz6nq1

NEO donations: AJXcF65VLcyeADrxKHExVLeewaGzCKvsov

Getting Started

  1. Open an account on Coinbase – this will allow you to bring FIAT (USD/EUR/etc) currency into the Cryptocurrency world.
  2. Open an account on Binance – this will allow you to transfer BTC/LTC/ETH into any of the other cryptocurrencies.
  3. Copy this spreadsheet:

https://docs.google.com/spreadsheets/d/1awNoOrU5JoNRmSTsvM4bV55BqO7oaBajIABNNSq4Dh8/copy

This spreadsheet will show trending symbols and estimate the sentiment of bull and bear markets.  Make a copy by clicking the link above and create your own version inside of your own Google account. This will allow you to hook into the paid service.

Sentiment Trading

According to Google Trends, the word “sentiment analysis” has been gaining steady traction over the past 5 years.

Sentiment refers to the attitude expressed by an individual regarding a certain topic. This is especially relevant in trading, where so much of the change in price is dictated by emotions:

When it is applied to trading, sentiment can be used (with great potential windfall) as a directional signal to figure out whether you should enter a crypto position within your portfolio.

A way you can utilize sentiment when trading cryptocurrency is to measure the positivity or negativity of a tweet. If recent tweets have been overwhelmingly bullish (aka, the person expects the crypto rise) and movement is beginning to happen in the currency, chances are good that the trend will continue.

Luckily for you, StockTwits already does this with around 225 different cryptocurrencies. And if you can combine the sentiment with trending cryptocurrencies, you can catch the wave right as it forms.

Services Used:

  1. Google Sheets
  2. Spreadstreet Google Sheets Add-in – $15/month
  3. StockTwits
  4. CoinMarketCap API

A note on security

Users have expressed hesitation about running a google sheets add-in on their main computer.

  • If this were malicious, people would have downvoted the add-in into oblivion, and it would have been removed from the store.
  • Use two-factor authentication on EVERYTHING possible.
  • If you are still worried, you can open it within a virtual machine and test it first – you should be doing this to test different cryptocurrency programs anyways.

What the spreadsheet pulls:

  • Trending Symbols (30 at a time)
  • Historical Price Data
  • Recent Tweets
  • Bullish/Bearish Sentiment of recent tweets

Spreadsheet Sheets Overview

The Dashboard

cryptocurrency investing spreadsheet - dashboard

Changing the timeframe

cryptocurrency investing spreadsheet - timeframe

Changing the cryptocurrency

cryptocurrency investing spreadsheet - currency

Instructions Tab

cryptocurrency investing spreadsheet - instructions

Summary Tab

cryptocurrency investing spreadsheet - summary

How to use the spreadsheet to spot trending cryptocurrencies

You will spend most of your time in the “Analysis” tab, where the trending cryptocurrencies reside.

I am almost always looking at the “By Hour” timeframe, as the “By Day” and “By Week” is usually a missed opportunity…however, those time frames can still be very useful (albeit, for different reasons).

You want to ride the wave on a cryptocurrency under one or both of the following conditions:

  1. The tweets are very recent, preferably within the last hour
  2. Overwhelmingly Bullish sentiment

A Great Example

cryptocurrency investing spreadsheet - great example

A Bad Example

cryptocurrency investing spreadsheet - bad example

Getting the spreadsheet to work for you

1. Install the Spreadstreet add-in for Google Sheets

2. Get sheet ready for use with the add-in

  • Important Open the template, click the menu Add-ons / Spreadstreet / Help / View in store, and then click Manage and in the dropdown menu click Use in this document.
  • Numbers in row 26 and below should populate. If they do not, refresh the sheet

3. After logging into the add-in, refresh the sheet

  • In the analysis tab, change the “TIMEFRAME” dropdown to one of the other choices…this refreshes the pull
  • Note: CoinMarketCap API has limits. Be careful when attempting to refresh the sheet too many times

Troubleshooting

  1. Important Open the template, click the menu Add-ons / Spreadstreet / Help / View in store, and then click Manage and in the dropdown menu click “Use in this document.”
  2. A reload of the entire worksheet fixes quite a few problems.
  3. Deleting and re-pasting the formula in A1 of the “Data” tab fixes things as well.
  4. If all else fails, drop me a message
  5. The “TIMEFRAME” cell in the Analysis tab (B3) refreshes the pull. Change the results for new data.

Some trending coins are not pulling correctly…what’s going on?

StockTwits has a list of ~225 coins it currently supports. See the “TweetInfo” tab for the full list.

I have tried logging in, activating the template with “Use in this document” and refreshed the sheet…still nothing.

Head to the “Data” tab. Delete the formula in cell A1, and repaste the following: =SS(“tickers-coinmarketcap”, headers, “0”, Currency)

Hoping this is something that is useful to everyone, and I am more than happy to help peeps setup the sheet so they can use it. Just send me a message on here.

Original Medium article can be found here: https://medium.com/@spreadstreet/financial-modeling-for-cryptocurrencies-the-spreadsheet-that-got-me-my-first-1-000-gain-f4d0d1a6e5ed

RESOURCES

Download the spreadsheet: https://docs.google.com/spreadsheets/d/1QtxaDWCoXkIqjPVVkU8DNsx8GBaBd180COwn1CIasa8/copy

Download the add-in: https://spreadstreet.io/tools/google-sheets-add-in

Help: https://spreadstreet.io/docs

First time install and login: https://www.youtube.com/watch?v=aLjtPR4T2bg

Bitfinex Candles endpoint help: https://spreadstreet.io/knowledge-base/bitfinex-api-candles-endpoint/

RELATED POSTS

Top 12 Cryptocurrencies Ranked by Risk-Adjusted Return

10 Statistical Price Predictions for 10 Cryptocurrencies

Bitcoin Madness: How to Simulate Bitcoin Prices in Google Sheets

The Spreadsheet Author

John Young is the founder of Spreadstreet.io, former Financial Analyst for a big-ass company, and runner-up in the 6th grade spelling bee.

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1 thought on “Ultimate Cryptocurrency Investing Guide: Financial Modeling”

  1. So many people have covered the topic related to Cryptocurrency and Investing in Cryptocurrency.

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    Adding an angle to Financial Modelling with Crypto’s is just amazing.

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    Reply

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