Next-Generation AI Crypto Trading
Back in 2018, very few people were receptive to AI. This was largely caused by influential people like Steve Hawkins and Elon Musk taking a strong stand against the tech because of its possible negative implications.
Millions of new crypto users had just entered the crypto space thanks to the 2017 ICO boom. Hundreds of new cryptocurrencies had been created and offered to investors through Initial Coin Offerings (ICOs).
However, even with the rapid rise, investing in Crypto proved to be technically difficult. Most of the people who have heard of Cryptocurrencies or even invested in it only have a vague understanding of how the system works. Confusion among new investors became high due to the abundance of coins and their high volatility.
As more investors join the Blockchain space, the impact of AI becomes increasingly significant to crypto trading. It became clear that by developing fast, effective, and impartial AI trading bots, cryptocurrency traders would avoid slippage and perform accurate technical and fundamental analyses to make better trading decisions. Ultimately, many traders saw an increase in their profits while seeing considerably low losses.
AI crypto trading came to light as a way to help both new and experienced traders make sense of the wild crypto market. Over the years, AI has slowly made its way into Crypto activities and even creating synergies with Blockchain technology to help address trader’s concerns.
The Role of AI in Crypto Trading
- Use of Sentiment analysis, data is absorbed from social media and news; then it is absorbed, stored, filtered, and processed in real-time. A given Cryptocurrency is evaluated based on its market sentiment.
- Use of machine learning to absorb different uncorrelated features and detect patterns in multiple dimensions, which can be related to price and volume, sentiment analysis, or Blockchain related data.
Next-Generation AI Crypto Trading
Companies are working day and night to further improve the Crypto trader’s experience using AI. Below are some of the amazing features that are part of the next-generation AI Crypto trading:
- Unique automated Ethereum-based Crypto trading platforms for novices and experts.
- Expert traders being able to build and rent out trading strategies to other users hence earning passive income and giving new users a great trading experience.
- Token powered trading bots that take emotion out of the trading
- Traders being able to conduct their transactions on several exchanges from an umbrella platform.
- AI arbitrage trading. Arbitrage trading is a form of buying an asset in one market and simultaneously selling it in another market at a higher price. Although the Blockchain market is developing rapidly, the trading infrastructure still has some inefficiencies compared to traditional financial markets. Which then creates an opportunity for AI arbitrage trading which helps generate arbitrage profits and is the most profitable strategy with the lowest risk.
- Allowing data scientists to monetize their insights by creating and selling indicators and signals
- Combined with AI-driven services, the interconnectedness of Blockchains could allow for the creation of apps that can automatically execute trades based on multiple market factors and not just the events concerning one Blockchain or cryptocurrency. Investors will be able to take advantage of automation rather than having to constantly monitor all these factors to time the market right.