Smarter Trading and Safer Platform Will Become A Reality After Embracing AI

The collaboration between the crypto industry and artificial intelligence (AI) is no longer a thing of the future. It is now becoming a prevailing trend that no crypto user or investor should ignore. It is reshaping the way we deal with digital assets and secure them accordingly. The need for smarter trading systems is essential to maximize cryptocurrency returns, tame volatility, improve security, and enhance user experience. AI has the potential to fulfill all these without much human intervention or effort. 

Smarter Trading Is Feasible With AI

The term smart trading essentially implies minimizing the possibilities of making losses and maximizing profits. There are several cryptocurrency exchanges such as PayBitoPro that are enabling smarter trading by integrating AI. AI-powered bots can already oversee price movements, execute trades throughout the day without any human intervention. It also knows how to use technical indicators judiciously.

Data Analysis

AI algorithms can analyse datasets by studying social media sentiment, historical price movements, and watching market news. Hence, smart trading becomes easier with short-term price changes. The predictive capabilities will allow traders to act proactively rather than reactively. Scientists around the world along with AI power a hedge fund called Numerai. It exemplifies the model by using machine learning (ML) models to accurately predict the market on a decentralized platform. 

Personalize Trading Strategies

AI can also help in personalizing trading strategies that are based on portfolio, risk profiles, and studying market behavior. The most common reason why people lose money while trading is emotional bias. AI removes emotional bias and carries out trades only based on logic and data-driven insights.

Enhances the Safety of Crypto Platforms

The crypto world despite growing and witnessing massive levels of adoption and mainstreaming still faces a chronic problem of security. Security still remains a major challenge because of rampant crypto scams around the world. However, AI can play a leading role in reducing the security risks considerably. It can detect suspicious transactions and identify vulnerabilities better than most human users. Moreover, it also has a swifter response than any other technology.

Examples of Improving Safety

There are three AI-powered analytics tools to track blockchain transactions in real-time. These are CipherTrace, Chainalysis, and Elliptic. These companies can identify patterns that are strikingly similar to scams, money laundering, and terror financing. It can also monitor illicit activities and flag suspicious transactions in hot wallets. 

Monitoring Complex Data

AI also has good data analytics capabilities. Without AI, there is no feasible and affordable way to analyse vast amounts of complicated data. There are smart contract auditing platforms such as OpenZeppelin Defender and Certik that can scan AI to identify vulnerabilities in code. Humans can often overlook these resulting in serious harm. Since the rise of DeFi, financial security has been a top priority. Neither people nor companies want to lose millions of dollars from DeFi platforms due to an inadequate security apparatus. 

Looking Forward

The integration of AI into the world of cryptos is not a question of when and how. It is now steadily becoming a reality everywhere. There are projects such as SingularityNET and Fetch.ai that are helping with faster crypto integration. It is helping decentralize AI platforms to carry out negotiations smartly, transact faster, and improve through machine learning (ML). Smarter trading and safer platforms can become a reality soon provided the crypto regulations do not act as an obstacle.