Artificial Intelligence Is Coming To Crypto Trading (The Relation Between Artificial Intelligence And Cryptocurrency)

The cryptocurrency market has been an exciting counter to watch over the last few years. Daily trading volumes, blistering returns and mind-blowing swings have characterized this blockchain trading. They have dethroned established currencies to grow at the most rapid pace. This ecosystem presents one of the best platforms to take advantage of artificial intelligence.

The behavior of the market has caused seasoned and amateur investors to lose money by making rush decisions. Emotional trading is responsible for quick sales and unreasonable acquisitions. Artificial intelligence is purposely designed to remove guesswork and thinking from the equation. Artificial intelligence calculates your risks in a fraction of a second and enables you to make the right buy or sell decision.

While emotional investors have reaped huge returns, many have panicked and lost a lot of money. Among the fears associated with AI is accuracy during execution. However, over the last few years, such platforms as Siri and Alexa have raised the accuracy of AI to almost 100%. This eliminates any fear a trader may be having about use of AI in crypto-currency trading.

How Artificial Intelligence Is Affecting Crypto Currency Trading
The growing popularity and efficiency of the cryptocurrency market has brought together both amateurs and professionals on the trading floor. All these investors need information that is accurate and sieved to better understand the market and protect their investments. They need an environment with minimum risks. Because of the speed required to make such analysis, Artificial intelligence is required. Why is AI needed on the platform?

It makes more traders independent which allows them to make more money
It gives confidence to investors since they can analyze the market and make decisions without requiring advanced financial knowledge. This is also boosted by a reduction in losses during trading.
You can keep track of your gains and avoid catastrophic losses without by limiting your level of exposure in the market.
Artificial intelligence allows you to expand your trading portfolio. This is through better understanding of the market as well as an increase in the speed of trading.
With more people embracing AI and crypto-currency trading, volumes will increase as more people gain trust in the currency.

Opportunities and Limitations of Using AI in Cryptocurrency Predictions
Artificial intelligence is embraced by institutions because it provides incredible data. It would take the human mind countless hours to analyze and synchronize this data. When dealing with a global currency like Bitcoin, you need to analyze a myriad of factors before making an investment decision. You also need both qualitative and quantitative data to ensure that your decisions are to your benefit.

Speed is off essence when trading in crypto-currencies. There are millions of people mining coins around the world. By relying on artificial intelligence, you can execute your buying or selling decision faster. AI also saves you from the dangers of relying on speculations and rumors in trading. You have real data that makes your decisions certain.

Limitations
Bitcoin is the oldest currency and has only been in the market for a few years. This means that it lacks sufficient data to predict its performance in the market. There are no trends and charts that can be used in modeling and relating performance. Unlike stock markets or currency trading, there is little anyone can do with the data available.

Even AI is still dependent on the human mind for engineering. The algorithms are subject to human biases that could also lead you to make a huge investment mistake. If the designer of the algorithm is not conversant with the working of the market, you are heavily exposed to erroneous trading that could lead to huge loses.

There still exist technological and processing limits. Huge companies can afford the resources to invest in such processing speeds and machines. However, an ordinary person will be at pains to afford such.

There are still issues with trust regarding bitcoins and crypto-currencies. A wallet was hacked in 2016 leading to loss of thousands of coins. This means that you cannot settle and hope that your coins are safe. Technology remains vulnerable.

Can You Rely on AI For Your Trading?

Every trader needs the best tools to conquer a market. The speed of AI and its analysis capability have proven to be the deal breakers in cryptocurrency trading. The best investors in data today will make the most favorable investment decisions. When this combines with the speed of AI, you will be closing the deal before everyone else can make a decision. AI will there create the next class of millionaires in the crypto-currency ecosystem.

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