AI & Cryptocurrency - A Powerful Pair

Dec 16, 2021
4 min read

We really need to discuss the fascinating and famous phenomenon going on for the past few years: cryptocurrency. Digital coins have become an incredibly profitable investment tool to date, and it comes with the potential to generate huge profits on cryptocurrency exchanges. It is barely a speculative investment, even for the long term. As of today, if we talk about the client's premium in digital money trades, there is a good and precise growth indeed.

The mechanization of "exchange interaction" becomes inevitable and widespread if development occurs rapidly in any fragment. The same is the case with cryptocurrency. Brokers with the coding ability and good programming knowledge can build their own crypto robots. A broker can also work on improving the existing expert advisors, which will lead to a productive exchange of advanced coins. Robots will have no boundation for exchanging cryptographic resources. And from this proprietor will achieve remunerative pay.

But the focus must also be on greater danger. Whether the amount of computation is a handful or the large scale that is required to computerize the exchanging trade instruments, you always get them on the internet. Thus the actual quality always remains questionable. There is always the possibility of error in settings. Simply put, a fast loss hangs over the store. The gist of these things is that crypto robots should be thought through very carefully.

One needs to be vigilant as to who should be a trading advisor. Otherwise, it is always easy to contact a viral miner and allow it to use up your system resources and thus lose money from your trading account. You won't even know, and your coins will end up in a fraudster's purse.

In recent years, these traditional financial markets have seen active use of machine learning and artificial intelligence. Due to the nuances, some companies had no choice but to shut down and announce that they would later disclose it.

Due to the high volatility of cryptocurrencies, crypto trading certainly involves many risks, but it is also more profitable than any other form of investment. Although fluctuations are a big deal throughout the day, eventually, a steady income reaches the trader. To analyze patterns in a dynamic market like crypto, a high level of information needs to be processed. And the role of artificial intelligence and machine learning systems will certainly matter here.

Artificial intelligence can handle large amounts of data with high working speed, thereby managing traditional assets, bonds, and stocks, which are worth billions of dollars. Still, ME and AI systems cannot fully take their place in the crypto market. But these technologies are actively entering the market.

Predictions About The Cryptocurrency Market using AI

Augur's decentralized platform is based on the experience of network participants. But fairly accurate predictions come from it. It is the Forecast Foundation, a non-profit organization that developed Augur and aimed to make it an accessible source of public forecasts. In contrast, the Neurobot platform is based on the functioning of the neural networks and not on the user experience with the ability to make predictions on the dynamics of the crypto market. The system itself keeps an eye on exchange rate fluctuations and puts forward predictions for the next day. NeuroBot claims an accuracy of up to 90% and plans to further improve the system with technical and fundamental analysis. For a novice crypto trader, such platforms are meant to make life easier, with little or no know-how in the beginning. Obviously, it is not wise to rely on such predictive platforms, yet they can contribute to the lion's share of technical analysis.

Market sentiment

Tracking cryptocurrency sentiment requires a huge amount of data. This requires a combination of blogs, articles and forums and the comments within them. AI and Blockchain-based platform Senno has a tendency to automatically analyze and generate results in no time. The system also implements elements of machine learning. Senno with the CryptoScanner app uses AI to determine market sentiment so that traders can use the results to plan their strategies.

Business payments

The main problem that can be sighted in cryptocurrency is the lack of liquidity. Exchange rate fluctuations fail to make digital currency attractive as a suitable alternative for commercial payments. Heavy fees from exchanges and banks compensate for the difference between supply and demand. A platform like TradeConnect uses machine-learning technology to handle such issues. Platforms like TradeConnect come out to deal with such problems. TradeConnect uses machine learning and side-matching protocols to uncover the right broker and bank. Individual companies are specifically targeting AI platforms and an example of this is the Money Token team that created AI assistant Amanda. The groundbreaking concept provides loans to the crypto community. The system is designed to lead the borrowers in a proper way which goes from loan application to automated status check to repayment.

Security when using crypto bots

Sharing API keys of exchanges requires trusted services with a good reputation. The API key allows using your account to trade and withdraw funds through it. If a bot is using the API, it is not in itself a sign of fraud. Before using any platform, do thorough research about it. Learn about security methods and use two-factor authentication when limiting account access.

Final Words

A bot is not dependent on sleep so can work round the clock. The boat is purged of more human factors such as mistakes or emotions while doing trading operations. Bots can trigger instantaneous automatic execution according to predefined set parameters. In contrast, Bots can be a disadvantage with outdated strategies. Thus, due to lack of experience, the user may incur a loss. Set-and-forget is harmful, and bots must be constantly monitored. Don't choose bots with low-quality software. And even if a bot is configured properly, it will not guarantee profits. Prices and earnings depend on other factors as well.