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Collaborative Filtering: What is it and what is it for?

The collaborative filtering is more important now than ever with the advent of the Internet has unlimited information consumers sometimes causing information overload. Find out how these algorithms influence consumer choice.

Index of contents:

  • What is collaborative filtering?
  • Types of collaborative filters
  • What are collaborative filtering for?

New models, such as collaborative filtering, make it possible to solve these problems and are very useful to improve search techniques between users of the same community. Still don’t know how this tool can help your business? In this article we will tell you all the keys to collaborative filtering.

Index of contents

  • What is collaborative filtering?
  • Types of collaborative filters:
  • Collaborative filters are used to:
    • Types of filter system algorithms:
    • Difficulties we may encounter when we use collaborative filtering:

What is collaborative filtering?

The collaborative filtering is a technique used by recommender systems to solve the problems of overinformation consumers suffer Internet. This trend is growing every day, due to its enormous functionality, more users are using this tool in their searches.

Before the birth of the Internet, consumers had no source of information except the product’s own advertising. The market has gone from this scarcity of information to its saturation. In this context, collaborative leaks emerge. Companies incorporate these tools on their page and the users themselves build a collective intelligence through a system of recommendations that are then studied and translated using statistical algorithms.


One of the pioneering companies in incorporating this tool into its website was the famous online store , which informs its users of the products that might interest them based on the ones they had already clicked on.

Types of collaborative filters:

There are different types of filtering when establishing recommendations, they can be classified into four:

  • Filtering based on content: recommendations are made based on content that may be liked or interesting.
  • Demographic filters: they are carried out by the characteristics of the users (age, sex, studies …).
  • Collaborative Filtering – Recommendations are based on upvoted searches from similar users.
  • Hybrid Filters : Mix the two or three of the previous filters for a better experience.

The collaborative filtering are used to:

The collaborative filtering is used to make automatic predictions about the interests of a user by collecting preferences or tastes of the same consumer or other consumers with common interests.

Types of filter system algorithms:

The filtration systems have many variants with algorithms used in its manufacture: 

  • Memory-based collaborative filtering algorithms, or Nearest Neighbor algorithms : use the collected data to calculate the similarity between users or common elements. It was one of the first to be used and is simple and effective. They work by searching for users with similar evaluation patterns with the active user, for whom the selection is being made. They also use statistical techniques to find neighbors with a search history similar to the current user. Their main drawback is that they need a minimum number of users to make the recommendation.
  • Model-based collaborative filtering algorithms – Machine learning algorithms are used to find patterns. Improves prediction performance by providing a more intuitive foundation. They work by using like-minded user ratings to calculate the active user’s choice. They first model the user’s searches, but this process requires long and intensive learning.

There are also hybrid algorithms that combine both models but are complex and expensive to implement.

Difficulties we may encounter when we use collaborative filtering:

  • Data scarcity: Collaborative filtering systems are based on data sets. If this data sample is small, it can be very costly and inefficient. Sometimes a common problem is starting from scratch, as preferences cannot be collected accurately and reliably.
  • Synonyms: the diversity of tags with similar names are sometimes not recognized by the filtering system when in reality the user is looking for the same element and information is lost. For example: a user who searches for computers or computers , they are synonyms but the search engine does not relate them.
  • Haters or black sheep: another difficulty that affects filtering systems are the opinions of users who do not agree with anything and all their recommendations are negative, they worsen the quality of the leaks. 
  • Shilling attacks: in the recommendation systems anyone can make evaluations, a user being able to vote positively only on their products and services and give negative to their competitors, falsifying the effectiveness of this tool. 
  • Diversity: the filters try to find a diversity to be able to recommend between multiple options. Sometimes this filter reduces this variety, only giving visibility to the most popular products.

Collaborative filtering is a great tool to improve visibility and the best way to introduce new products to more customers. Do you want to continue learning techniques for your business? Do not hesitate and take a look at our  Postgraduate Course in Omnichannel e-Commerce  at IEBS Business School where you will learn everything you need to give the best boost to your company.

Related Posts: 

  • Sales Hacking or how to put lead generation on automatic pilot
  • What should a good e-Commerce platform have?
  • 5 Sales Strategies for an e-Commerce
  • Why has deep learning overtaken machine learning?

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How to Create Account in EXMO step by step

In this article you will learn how to register in EXMO in 2022, as you well know it is a cryptocurrency platform to trade, as well as buy and sell digital currencies. Next, we are going to make you a quick and easy guide to create your account.

How to open an account in step by step

Access the official website of EXMO to be able to register for free.

Select “Registration”

At the top right you will have a Registration button, click on it and there you will open a form to place basic data such as username, email, telephone, password and its confirmation, as well as the acceptance of terms and conditions of the platform.

Likewise, if you want you can subscribe to receive news you just have to activate the option. then activate the captcha and click on “Registration”

Phone and email verification

They will send you an SMS to the registered phone to place the verification code and give it confirmation. The same will happen with the email, in which they will send you an email with a link to confirm the account and activate it.


Account Verification

Once you have completed all the registration, you must verify your account, this is quite important that you do it so that you do not have limitations, it is a financial platform and as such, by regulation you must verify your identity and address.

  • For identity, you can do it through your ID, passport or other identity document, also a selfie with the document, you can support yourself by linking the mobile if you do not have a webcam.
  • In the case of the address, it would be verified with a bill for services such as electricity, water or other document where they can verify your location or residence, this is to raise the limits further.
  • For the card, you need to enter your card details and even take a photo and attach it.

Ideally, you should verify everything, but the first thing is the identity, in which you will be required name, surname, middle name in the case you have. Secondly, you will be asked to identify what type of document you are going to use to identify yourself, for example, the DNI.

After that, you must upload a photo of the front and back of the identity document, if you do not have them at hand, you can do it with your mobile and send it to you by mail or web whapsapp or another application, and then upload it from the computer.

Once this is done, it will request a selfie with specific details, where you must write down on a paper the word EXMO, followed by the date of the day of the photo and hold the DNI without covering anything, there you capture the photo and attach it, with these steps you will already be in the process of verifying the identity.

Likewise, you can do it to verify the address with a receipt and in the case of the card you must do the same, they are similar processes quite simple, the idea is that you complete the entire registration process.


Another important point regarding registration is the security configuration in which you can add extra protection and have two-step authentication. Likewise, you can observe other options such as personal information, which you can review carefully.


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How to create an account on Poloniex step by step

In this article you will learn how to register with Poloniex in 2022, it is a cryptocurrency trading platform, where you can trade with margin or leverage and you can also do hodl. Here’s a step-by-step way to create an account on Poloniex.

Go to the official website of Poloniex

Access the Poloniex registration page to later follow the step by step that we will give you to register for free.

Select “Sing Up”

Once you are on the platform you must select in the left menu “Sing Up”, where you must enter the email and password, the latter you must confirm it. Additionally, you must place the referral code (optional), as well as accept the terms and policies that govern this page.

Verify your email

Once the previous form has been completed, you must check the email where a link will be sent for the purposes of verifying the email, in order to continue with the account registration process.

Account access

With the email and password data entered, we select “Log In” and access. Among the important things that there are is the “profile”, where you will have to verify your account.


If you want to apply margin for trading or leverage you must verify your profile in “Upgrade” you will be able to select other aspects that will help you verify your identity, you will probably be asked to upload a file, such as a photo of the DNI or an invoice to verify the address.

Then, in the event that you want to use the future option that allows margin up to one hundred leverage, you have to have verified these things.

This request is totally normal, since it is required by all financial platforms by legal issue, with this you would already have verified level 2 and with it you would not have any type of limit.

Right now, you could make all kinds of deposits, normal purchases with certain fairly high limits.

Two-factor authentication verification

To protect your account you can activate 2FA this is double authentication code, so you must enter a code apart from the password to be able to log in.


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How to Invest in Cryptocurrencies on Skrill

If you are one of those investors who do not like to deal with many complicated orders, but prefer to hold long-term, then Skrill is an excellent alternative for you. With the simplicity that characterizes it.

But the question is, how to invest in cryptocurrencies within Skrill? The answer will be shown in this article.

But first log in to your Skrill account, then you could already start the step by step that will be shown below.

Access Skrill’s Cryptocurrency Investment Options

Like any financial platform, Skrill puts at your disposal tools so that you can invest in cryptocurrencies within yourself, doing so in a simple and comfortable way. To access these tools, below, we will describe the following procedure:

  1. Within the home screen of your account, in the left sidebar, find and tap on Cryptocurrencies.

Important: It is likely that when you enter this section, you will be asked to accept some terms or similar.

  1. Once there, you are presented with different options in terms of cryptocurrencies. From among these, you will select Invest now, clicking on this option.

  1. Once you access that section, you will be shown an extensive list of existing cryptos in Skrill. In each of which, you are given a Trade option. If you click on any of these, you would enter their trading options.

  1. When you have entered the crypto you chose, you will see a Buy – Sell panel.

Ways to trade cryptocurrencies in

In this buy-sell panel or trading box, you will have some options that will allow you to perform these operations:

Steps to buy cryptocurrencies within Skrill

First of all, talking about the purchase of cryptocurrencies in the Instant mode (which is the usual one), you will be able to do the following:

  • Select the currency in which you want to buy cryptos.

  • Set the amount to spend that, for its purposes, must be a minimum of 10 EUR (You are also shown the balance you have available).

  • Select the cryptocurrency in which you are going to invest.

  • See what you are going to receive in cryptos in equivalence for what you have invested.

  • See the commission you will be charged for that transaction.

When you have everything ready, then you can click Next.

After this, you will be able to see the summary of the entire operation; you will be told everything you have added, such as the amount and what you would receive, and also the commission charge, which will be added to the total amount to be spent. If you agree with everything, you can click on Confirm.

Steps to Sell Cryptocurrencies within Skrill

There is not much to comment on in the case of selling your cryptos within Skrill, as they are basically the same steps as in the case of the purchase:

  • You establish the type of crypto that you are going to sell (and that logically, you should own).

  • You indicate the amount of cryptocurrencies to sell directly or, if you prefer, using the percentage indicators.

  • Select the currency in which you want to receive the funds in equivalence.

  • See how much you will receive, in the same way as the previous case.

Having this ready too, you would click Next.

Following this, you must also click on Confirm in a summary similar to that of the case of the purchase, where you will see important data with which, if you agree, you can proceed to the respective confirmation.

Some other options that Skrill gives you to trade

The options you have in Skrill to trade are very practical and easy to use. And for your convenience, they are not numerous. Here’s what you can find on Skrill for when you want to trade on it:

The Portfolio section

In this section you have at hand some useful things for your negotiations, such as:

  • The Watchlist, with which you can keep abreast of the indices of your cryptos in the market.

  • Alerts and orders. With these options you are given the possibility to mark an index within the cryptocurrency, which, if the price reaches it, this will be notified to your email or mobile, as you have it configured.

  • Recent activity. It is the section where you will get your last financial movements, when it comes to purchases and sales, as is logical.

The Trade section

Within this section, you can do what you are told below:

  • Visualization of Graphs. This will allow you to take a look at the stock market movement in a not at all complex interface (you can also see the current trend that the market has in terms of sellers and buyers).

As you can see, the trading system within Skrill is not complicated. They are few and simple options, but with the same utility for people like you who do not want to get too entangled in the stock market issue, but to play it safe, but in a simple way.

This tutorial summarizes it this way so that you have a general idea when investing in cryptocurrencies within Skrill.

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