In the latest Cointelegraph Report, we sought to find out the real value AI brings to the crypto industry beyond the hype surrounding the technology. To do so, we looked into three main areas where AI is impacting crypto: trading, data analytics, and user experience.
For many years, trading bots have allowed users to execute trades in an automated way based on certain pre-set parameters.
With the recent development of Large Language Models such as ChatGPT, AI-powered bots are capable of processing large amounts of historical data, which can be helpful in predicting future price movements.
However, despite the latest advancements, AI-powered bots are still not sophisticated enough to elaborate complex trading strategies.
“It’s basically like having a bunch of dumb partners who can, who can adhere to very basic commands, but they can’t do any like very complicated thinking themselves,” said Eric Crown, a professional crypto trader and YouTuber, sharing his personal experience with AI-powered bots.
Regarding data analytics, AI tools can process large amounts of public data scattered on the blockchain, providing valuable insights into the dynamics of the crypto ecosystem and assessing potential market risks.
However, a large amount of market data is kept off-chain by centralized exchanges and therefore is not publicly available. That limits the capability of AI to make accurate assessments.
To find out more about the real value at the intersection of AI in crypto beyond the hype, watch out full Cointelegraph Report on our YouTube channel and make sure to subscribe!
Sourced from cointelegraph.com.
Written by Marco Castrovilli on 2023-09-27 16:00:00.
