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An up-and-coming career in the crypto market is that of a data scientist. This professional collaborates with the different business areas of a company, seeking to understand its goals and determine how data can be used to achieve them.

Their job is to design data modeling processes, create algorithms and predictive models to perform analyses that allow them to anticipate trends, detect anomalies, and optimize complex issues/problems.

According to Ricardo Lomba, data scientist at Transfero, mathematical models have been used in finance for decades. However, although they have proven useful, there was a limitation of computational capacity. “This implied the need to make simplistic hypotheses about the phenomenon we wanted to study”, he explained.

Data intelligence is critical in the crypto market

“As data became more and more abundant and granular, and available computing power incremented, new data-driven learning models capable of incorporating trends and complex relationships between information became increasingly recurrent”, said Lomba. “Today, it is hard to find a market that is not being transformed through machine learning algorithms in some way”.

Examples in the finance sector include identifying short-term price trends, models for executing buy and sell orders, and credit models.

The cryptoasset market in particular, given its digital nature, has an abundance of near-real-time data available, which boosts the use of machine learning models. For example, a data scientist at India’s Vellore Institute of Technology illustrated in his blog how neural network-based models would be able to predict short-term changes in crypto prices.

What skills are needed for a data scientist?

It is important to highlight that the data collected by algorithms need to be cleaned and analyzed. Consequently, a data scientist is essential, as he needs to develop skills such as statistical analysis, knowledge of programming languages, such as Python and SQL, good data intuition and business vision.

These professionals study the structure of the data stored in the blockchain, correlating it with data from various other sources, such as those from exchanges, traditional market financial indicators, news, and social media posts. Their work contributes to fraud prevention, analysis of the market and cryptoassets user behavior, and development of investment strategies.

How much does a data scientist earn?

According to research on recruitment sites, the average salary in Brazil is just over R$ 6.000,00. However, according to Márlyson Silva, CSO of Transfero, the starting salary in the crypto market is R$ 8.000,00.

If you wish to work in the field, keep an eye out for open positions at Transfero and the Transfero Academy’s new talent development program. You can submit your resume on our careers page and visit our LinkedIn.