In the latest Cointelegraph report, we sought to find out the real value that artificial intelligence brings to the crypto industry, beyond just the hype surrounding the technology. To do this, we looked at three main areas where AI impacts cryptocurrencies: trading, data analysis, and user experience.
For many years, trading bots have allowed users to execute trades in an automated manner based on certain preset parameters.
With the recent development of large-scale language models such as ChatGPT, AI-driven bots are able to process large amounts of historical data, which can help predict future price movements.
However, despite recent advances, AI-powered bots are still not sophisticated enough to develop complex trading strategies.
“It’s basically like having a bunch of dumb partners who can, they can follow very basic commands, but they can’t do any very complex thinking on their own,” professional cryptocurrency trader and YouTuber Eric Crown said while sharing his personal experience with AI-powered robots.
In terms of data analysis, artificial intelligence tools can process large amounts of public data dispersed on blockchains, 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 is therefore not publicly accessible. This limits the ability of AI to make accurate assessments.
To learn more about the true value of AI in crypto, watch the full Cointelegraph report on our YouTube channel and be sure to subscribe!