Cryptocurrencies like Bitcoin, Ethereum, and Litecoin are capturing the attention of investors and researchers alike. But what about predicting their market movements? This study dives into a new way to forecast these cryptocurrencies' volatility using something called non-Gaussian GARCH models. These models are like complex puzzles that help predict financial trends.
The study found that for Bitcoin and Litecoin, the best predictions came from a model called the Skewed Generalized Error Distribution. For Ethereum, another skewed distribution worked best. This means that instead of assuming everything is normal, considering skewed distributions can give better predictions.
So, what does this all mean? It shows that when it comes to cryptocurrencies, things aren't always simple or straightforward. By using these special models, we can better understand and predict the crazy ups and downs of the crypto market.
