A Deep Learning-Based Action Recommendation Model for Cryptocurrency Profit Maximization

Abstract

Research on the prediction of cryptocurrency prices has been actively conducted, as cryptocurrencies have attracted considerable attention. Recently, researchers have aimed to improve the performance of price prediction methods by applying deep learning-based models. However, most studies have focused on predicting cryptocurrency prices for the following day. Therefore, clients are inconvenienced by the necessity of rapidly making complex decisions on actions that support maximizing their profit, such as “Sell”, “Buy”, and “Wait”. Furthermore, very few studies have explored the use of deep learning models to make recommendations for these actions, and the performance of such models remains low. Therefore, to solve these problems, we propose a deep learning model and three input features: sellProfit, buyProfit, and maxProfit. Through these concepts, clients are provided with criteria on which action would be most beneficial at a given current time. These criteria can be used as decision-making indices to facilitate profit maximization. To verify the effectiveness of the proposed method, daily price data of six representative cryptocurrencies were used to conduct an experiment. The results confirm that the proposed model showed approximately 13% to 21% improvement over existing methods and is statistically significant.