Artificial intelligence (AI) has had a significant impact on the digital world. Innovations such as generative AI, with ChatGPT among the forefront solutions, have revealed remarkable capabilities at this early stage. Together with other new technologies such as blockchain, AI promises to accelerate innovation and provide new ways of working. Among the beneficiaries of its advancement is the tech-centric cryptocurrency industry.
Admittedly, the potential for disruption to the normal way of doing things is a concern that many will have about the use of AI. However, looking at the bigger picture, this technology can improve the level of work that people do, especially where AI can automate repetitive tasks.
As those in the industry – such as Tahir Butt, London-based entrepreneur – will know, the use of AI in the cryptocurrency space can increase the power and potential of the latter and revolutionise the way people transact and communicate online.
The Crypto Space
Here are some of the ways that AI will have an impact within the cryptocurrency sector:
- Fraud Prevention: The occasional instances of fraud in the cryptocurrency sector mean there are avenues that bad actors are using to exploit investors. As such, employing AI can help with fraud detection and ensure financial compliance, key aspects that will raise investors’ confidence in cryptocurrency.
- Crypto Security: As well as reducing loopholes for fraudulent activity, AI is also positioned to introduce machine learning algorithms that can recognise suspicious behaviour at various stages of the crypto trading process. Additionally, the large data sets that this sector produces can be analysed through AI to further strengthen the safety of transactions.
- Forecasting and Predictive Analysis: Computational models based on AI algorithms can review vast troves of data to provide insights into market movements and possible future trends. As crypto trading involves technical and fundamental analysis (like stock trading), working through AI-based models can help to make analysis more comprehensive.
- Trading Automation and Advice: In some instances, AI solutions can analyse real-time data from the market and execute trades on behalf of users. While the typical investment risks exist, these trading bots can reduce the risk of emotional bias while continuously improving their knowledge and decision-making functions. For the investor who is serious about using AI, they can create personalised strategies that the AI bots can efficiently deploy on their behalf.
There’s little doubt that AI has a lot to offer the crypto industry, something that investors and crypto enthusiasts can look forward to experimenting with in the future.