Cryptocurrency Sentiment Tracker

This project tracks qualitative sentiments surrounding cryptocurrencies in real time. It uses web scraping of Reddit posts combined with NLP sentiment analysis to generate time-weighted sentiment scores for various cryptocurrencies. The sentiment scores can be used as qualitative indicators for algorithmic trading systems.

How It Works

• Scrapes Reddit posts mentioning tracked cryptocurrencies
• Analyzes sentiment of each post using NLP
• Applies exponential time decay to weight recent posts more heavily
• Aggregates weighted sentiments into a Buy-Sell rating (-∞ to +∞)
  • Positive scores suggest bullish sentiment
  • Negative scores suggest bearish sentiment
  • Magnitude indicates strength of sentiment

Project Structure

• reddit-scraper: Handles Reddit API integration and post collection
• sentiment-analyzer: Processes collected posts for sentiment analysis
• config.yaml: Configure tracked cryptocurrencies and subreddits

Usage

python reddit-scraper/reddit_client.py [-n NUM_POSTS]

Optional arguments:

• -n, --num_posts: Number of posts to analyze per subreddit (default: 100)

Time Weighting

Posts are weighted by recency using exponential decay:

• Same-day posts receive maximum weight
• Weight decreases exponentially with age
• Posts older than 30 days receive negligible weight
• This ensures sentiment scores reflect current market sentiment

Setup

1. Clone the repository

git clone https://github.com/rayforman/crypto-sentiments.git
cd crypto-sentiments

2. Install dependencies

pip install -r requirements.txt

3. Set up environment variables

cp .env.example .env

Then edit .env with your Reddit API credentials from https://www.reddit.com/prefs/apps

4. Test the Reddit connection

python reddit-scraper/reddit_client.py

Limitations

• Sentiment analysis uses general-purpose NLP that may miss crypto-specific terminology
• Quality of sentiment depends on activity level in tracked subreddits
• Base sentiment is simplified to positive/negative without nuanced scoring

Next Steps

• Implement crypto-specific sentiment analysis
• Add more data sources beyond Reddit
• Add sentiment visualization and tracking over time
• Implement automated trading signals