ADS Capstone Chronicles Revised

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Figure 3 Heatmap for BTC-USD

4.5 Distribution of Percentage Changes Analyzing the distribution of percentage changes in the close prices for different cryptocurrencies provides insights into their volatility and behavior. Histograms with KDE plots illustrate these distributions for various cryptocurrencies such as ADA-USD, AVAX-USD, BTC-USD, COMP-USD, ETH-USD, LINK-USD, LTC USD, MATIC-USD, SOL-USD, and UNI-USD. Most distributions show a peak around zero, indicating most daily percentage changes are small and exhibit a bell-curved shape with varying levels of skewness. ADA-USD, AVAX USD, COMP-USD, ETH-USD, LINK-USD, and

SOL-USD distributions are slightly right skewed, suggesting occasional larger positive changes, as shown in Figure 4. In contrast, BTC USD, LTC-USD, MATIC-USD, and UNI-USD distributions are left-skewed, indicating more frequent larger negative changes, as depicted in Figure 5. Despite these variations, all distributions share the similarity of having most values clustered around zero, reflecting minor daily changes. Understanding skewness helps assess the risk and potential return of investing in these cryptocurrencies, as more volatility (wider distributions) usually translates to higher risk and potentially higher returns.

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