AI has assumed new roles and meaning with all its new and innovative ventures. A future, with life controlled by Artificial Intelligence, can no more be considered impossible. The surge of Artificial Intelligence is very much remarkable in every facet of life and society and the crypto universe is no different from them. So it is very much important to understand and learn how this coming together between Artificial Intelligence and Cryptocurrency can bring about revolutionary changes in the investment sector and also must analyze how new investors could get adjusted to these rapid and radical changes in the Crypto universe.
Artificial Intelligence is a product of the technological age that has radically influenced every facet of both technology and human life. There are many ways in which AI is helping investors with their investments and getting more benefits from crypto investments. The following article will analyze how the incorporation of Artificial Intelligence into Crypto trading triggers new changes in the crypto workings and how it affects and help investors with their crypto investments.
How Crypto changes its outlook with the coming of Artificial Intelligence in its workings?
Artificial Intelligence has proved to be a very great and useful change in the crypto universe. When it comes to crypto trading, the high volatility of the cryptocurrencies has always been a number one issue but at the same time, this volatile nature makes it very profitable to the crypto trading also. So it is like two sides of a coin. It at the same time adds to profitability and the risk of crypto trading. It is necessary to handle the vast amount of data generated from crypto trading and the incorporation of Artificial intelligence and machine learning proves its ability and role in processing this vast amount of data from crypto trading. It is with the conventions provided by AI technologies, that assets, stocks, and bonds worth billions of dollars were managed in the world of investment. Even though Artificial Intelligence and Machine Learning have not been used widely yet, their usage is actively increasing in the crypto universe and their successful implementation provides greatly beneficial results, which will make trading easier and more conventional. Following are some of the different ways in which the coming together of Artificial Intelligence and Machine learning and the investment sector makes it a very useful and profit resulting combination.
- The decentralized nature of AI and ML
The decentralized nature of both these makes them very efficient and apt for the trading world. The use of a decentralized platform in creating a peer to peer prediction markets is solely based on the network participant’s experience. Fairly accurate predictions are made using these decentralized technologies for cryptocurrency trading.
- The advantages of neural networks
The dynamics of the cryptocurrency market can be fairly predicted using neural networks. The system can be very well used in monitoring exchange rate fluctuations, comparing them and predicting the possible changes for the next day. The technical and fundamental analysis used in it helps in the improvement of the system. This has proven greatly beneficial to new investors which have got only a little understanding of crypto trading. Technical analysis of the market and also conducting it with high accuracy is made possible with this platform even though they are still classified as prognostic.
- The analysis of the market sentiment
The processing of a large amount of data is what that required for determining the sentiment of the cryptocurrency market. Articles, blogs, forums, and even comments are part of this vast amount of data. The elements of machine learning have also been widely used in this type of analysis of market sentiment.
- Finding and connecting the right broker
Lack of liquidity is always one of the primary drawbacks of the cryptocurrency market. The intense exchange rate fluctuation makes the trading of cryptocurrencies not so much attractive when it is considered as business payments. It is the high fees from exchanges and banks that compensate for the difference between supply and demand. For an instance, to solve this issue, TradeConnect, a machine learning technology are widely been used. The side matching protocol used in this technology helps the customer to find the right broker and bank and can make transactions directly and also enables them to pay minimal fees.
- The assistance of a Virtual Assistant
The incorporation of Artificial Intelligence has been widely adopted by individual companies. They are engaged in developing AI platforms related to certain provisions and services in the cryptocurrency market. Amanda, the virtual assistant created by the team of Money Token is very helpful for the members of cryptocurrency trading and investment. From the very moment of application until the full repayment of the loan, this virtual assistant can provide loans against the crypto collaterals and deals, and that too with full support.