AI or artificial intelligence is that type of technology that can change processes and systems in numerous ways, permanently. It has now entered the realm of crypto trading. Cryptocurrencies have already created a loud buzz in the global market and with the entry of AI, things are gaining momentum at a rapid pace.
In an interview regarding the impacts of AI in crypto trading, Guy Zyskind, the CEO, and co-founder of Enigma had said, “One of the biggest problems with crypto markets today is that it is illiquid, especially for the small-cap coins. Introducing bots increases liquidity”. Enigma is a company founded by a team from MIT, to cater to Blockchain related services.
Recently as an addition to the many other bots for trading in cryptocurrencies, there was a new one introduced, Bitcoin Trader. And this is an app that is designed so as to make cryptocurrency trading simpler for the investors. What do all these bots and other forms of AI do for the cryptocurrency trading?
Can AI help overcome the challenges?
The growth of cryptocurrencies has been huge in the recent years. Some traders even recommend that trading in cryptocurrencies is pretty easy for the newcomers. But there are some technical challenges when it comes to crypto trading. To overcome these and to make investing in cryptocurrencies simpler and more practical, AI and automation have a major role to play.
Better predictions with better data
The strongest trait of it is that it can help users in all those complicated decisions making situations. To make an accurate prediction in crypto trading one must be able to analyze as much market data as possible. There is no denying that this analysis would take a lot of time and efforts. This is where the machines come into the picture. They do the analysis part so you, as a crypto investor would be backed up with a better picture of what has happened and thus you can make better predictions.
Bots do not have any emotions
Much like the case of conventional trading, trading in cryptocurrencies also can result in huge losses if the trader takes emotional decisions. Bots know no emotions and this is how they are able to give crypto investors the consistency they very much need.
Automation saves time
In the end, automation in trading with cryptocurrencies would benefit the trader in two ways. One is to automate the decisions so that the instantaneously occurring favorable windows are not lost. And the other is the benefit of helping the user save time.
There is still a lot of scope for growth and in spite of the mixed responses received for the use of AI in crypto investments, we see a lot of firms showing interest in materializing this concept on a large scale. So this trend is likely to explode in the coming years as we see a paradigm shift from the phase of looking at machines, bots in particular, as a replacement for men to perceiving them as assistants that can improve productivity in all transactions.