When they think of artificial intelligence, many people immediately see the Skynet from The Terminator franchise – an army of killer robots rising up to destroy humanity. In reality, AI is a very real thing, already used by dozens of industries to handle massive data and make logical conclusions. How can AI benefit the crypto market and help investors increase their profits? Let’s find out!
The rise of Robo-Advisors
The most common use of Crypto AI is for monitoring and predicting the market. AI-based algorithms are often used in making so-called Robo-Advisors – special software designed to make educated predictions about the crypto market, based on huge amounts of data that would be nearly impossible for a human to process. These automated advisors can provide you with valuable advice and even make transactions on their own, making trading much more accessible to beginners.
You don’t require vast market knowledge to use a Robo-Advisor. It takes minimum to none human interaction, as the AI can work on its own to a large extent. All that’s left for you is to enjoy the profits and see your portfolio gradually expand.
Sentiment analysis of crypto using AI algorithms
A lot of predictions about cryptocurrencies are based on the current sentiments of people on the Internet. If people are overall positive in their reception of a given cryptocurrency, there are high chances that its value will rise as investors make their moves.
However, the Internet is such a vast place that manually browsing through millions of opinions and making logical conclusions is virtually impossible. For this reason, AI algorithms are used to collect and analyze sentiments from internet users from all over the world, recognizing trends before they begin to gain traction. These insights are very valuable to investors, making it much easier to find the perfect time to buy and sell.
Automating cryptocurrency trading with AI
Advanced AI scripts can perform the entirety of trading on their own. There are countless crypto trading bots available to use as a service, trading 24/7 automatically. These bots are programmed to create a diverse portfolio of different assets, implementing a solid investment strategy without any input from the trader. Who knows – maybe in the future artificial intelligence will do all the trading for us, as it looks like it’s often much more competent at doing so than humans.