Crypto is the future, but is AI something beyond? We can draw one more comparison where crypto changed our world, but AI towers over it and promises to go even further beyond! Just as crypto changes were inevitable so too will AI, and we can already see how it’s impacting our world. Crypto won’t be exempt and there will be several aspects of it that will become improved and better. Change is inevitable, but it looks like Crypto will get the best out of this new AI deal.
1. Market Predictions
The future is uncertain, and humanity has gone to extreme lengths to unveil it. Petabytes of data are processed daily, providing possible insight into what will, could, or should happen. The best traders go beyond gut hunches or blind trading and rely on reliable data to make their moves. What was done by hand or humans is rapidly being irreplaceably done by AI, as it can digest obscene amounts of data and provide accurate results.
This will reflect on crypto, as crypto traders will make better decisions and spot opportunities before others, capitalizing on early gains. In the vast sea of cryptocurrencies, it’s hard to stand out, but we can already see examples like Memebet making ripples and showing promising beginnings. What will 2025 bring for it once it officially launches? AI will know.
2. Personalized User Experience
However many crypto traders there are, they are all unique. The same can be said for cryptocurrencies, where some will attract a certain demographic, while others will have their niches. AI can analyze user behavior, trading patterns, crypto usage, and other preferences to deliver a personalized user experience that saves time and money. Gone will be the days of endlessly browsing and searching for the right crypto, as AI will deliver what you want before you type it.
The challenges AI could face in this sector are universally valued cryptocurrencies like Bitcoin or Ethereum, and any other cryptos that make it to mainstream popularity, but these are good problems to have. As the use of AI spreads, cryptos could be tailored and made for very specific user types or smaller groups, filling every gap in the ever-growing market needs.
3. Risk Management
As we’ve already determined, the future is unknown and full of uncertainties and risks. By processing unfathomable amounts of data, humans aim to make the future less scary, and AI can be more than a canary in a mine. By utilizing AI for risk management, crypto traders can illuminate entire market areas and hidden potentials lying far and wide. Current traders can’t know everything that will happen and how each cryptocurrency will develop.
But AI can be endlessly fed risk factors, investment histories, statistical data, and many other databases. With each asset AI will become better and learn how crypto operates and breathes, thus providing more accurate crypto trading and predictions for traders.
4. Automated Trading
The more, the merrier, as AI can make automated trading a reality and tear down any walls and barriers preventing less tech-savvy traders from joining. The current state of crypto trading requires expensive investments in market analyses and predictions, loads of technical knowledge, and experience. Understandably, this greatly limits the number of potential users, but AI could level the playing field.
A future democratization of AI could make it available to anyone, and with that, ordinary users can apply it for crypto trading. Because each cryptocurrency lives and dies by its popularity, this future influx of crypto traders could be the breath of fresh air needed to further propel crypto trading into new heights.
5. Fraud Prevention
Fraudulent trading is not something native to crypto trading, but a universal occurrence. Sadly, when large sums and values are in play, foul behavior will occur, leading to unfortunate results. As the industry evolves, so too do the mischievous behaviors of individuals who adapt to prey on the less fortunate. Pulling off a successful plot like that is nearly impossible today, but it is possible. Humans make mistakes, whether from exhaustion, a temporary lack of judgment, or simply by overlooking vital pieces of information.
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And when you’re trading impactful sums of crypto, having AI as your backup partner can make all the difference. AI as fraud prevention in crypto trading could be integrated as your handy companion. We’ve seen Chat-GPT implemented in Windows, and with further development, it’s possible to adjust it as an active AI vanguard, overlooking each of your crypto trades and warning you of potential dangers. AI has access to the user’s history and can analyze it in a heartbeat. And with that, AI can provide you with the safety net you need.
6. Regulatory Updates
Crypto trading is still under global scrutiny and topic of fierce debate. While some countries are very progressive, others are restrictive, while some are still undefined or where legal processes are underway. Keeping track of what you can or can not do while crypto trading is an immense task and it’s easy to get lost in the legal landscape. But not for AI, which can digest even the most complicated of laws into simple explanations.
AI can also warn you of potential breaches and advise you about your next step, leading you around legal restrictions or advising you on how to best utilize your situation. AI is very good at following directions and as it has no morality, being a machine, it will also respect the letter of the law in its entirety.
7. DeFi Innovations
Decentralized finances are a paradigm-changing field. Finances have always been under the strict jurisdiction of central banks and governments, but crypto has taken that concept, flipped it upside down, and thrown it through the window. Crypto is under no one’s jurisdiction, and in this freedom lies endless potential.Crypto can solve various problems, and it’s only the imagination and creativity that currently limit it. AI can suggest possible innovations, analyze the market, and spot which products are lacking or need improvement. Analyzing countless data of user needs, AI can say which customer need is left unsatisfied, and thus lead to the creation of a new cryptocurrency that will enhance the DeFi market.
