How AI Technology Can Help With Crypto Trading
The ICO boom in 2017 encouraged millions of new users to enter the crypto market. However, popular as it may be, investing in cryptocurrency can still be a technical pain. Artificial Intelligence can be harnessed to make this process easier.
Most people to have jumped onto the crypto trading bandwagon have little idea as to how they can use these as an investment vehicle. In fact, confusion is aggravated thanks to the abundance of the coins and their mobile valuations.
By nature, cryptocurrencies are volatile. Many investors panic when the price plummets downwards and sell off their assets. Not just newcomers to the market, even seasoned crypto traders are guilty of such behavior from time to time. When the market status of crypto is stressed upon for its faithlessness by government officials and big names from Wall Street – it gets difficult to ignore.
A right amount of skill and knowledge is required to make successful investments. Thankfully, there is a slew of tech-driven tools to help out those lacking. AI has found its way to the crypto market and is working in tandem with blockchain technology to try to find out a way to navigate crypto investments. Endor and Signals are two ventures which are in works developing projects that could change the way crypto trading is carried out.
Predictions Made Easier
How does AI fit into the crypto investment picture? Easy, AI lowers the barriers to prediction. AI can help an investor analyze past data such as the valuation of an asset at any date of any year, consider the social media mentions it had earned and use mathematical tools to come up with a prediction regarding how much the asset could be worth, say, a couple of month from now.
AI enables such analysis which would become almost unachievable without its help. One does need to factor in that the tools and resources required for such data analysis endeavors are only available to large companies with the financial ability to invest. After all, accurate predictions can’t be expected to come cheap, can they?
The quality of the prediction depends on many factors from the quantity/quality of the data, the sophistication of the mathematical tools being employed and the amount of computation power i.e. at hand to be used in the prediction process. AI can change the way crypto trading is done today and for the better.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.