Cryptocurrency Trading: Now more number of people are taking interest in Cryptocurrency as compared to few years back. But almost 90 percent of the trading is being seen only on the basis of sentiment. In such a situation, Artificial Intelligence (AI) is also helping in taking decisions related to crypto trading.
Since its first launch in the year 2008, the popularity of cryptocurrency has grown very rapidly. Within the first 10 years of its launch, the cryptocurrency market had grown from almost zero to over $400 billion. There are currently more than 3,000 cryptocurrencies in the crypto market that started with Bitcoin. The total global crypto market cap stands at around $1.50 trillion as of June 2021. However, it cannot be denied that this boom in the cryptocurrency market has come amidst very strong ups and downs.
Talking about bitcoin itself, its price had reached its all-time high of $60,000. But now rolling down and trading near $33,000. Due to the volatility in the crypto market, many investors felt that it can make good profits in a short time. But, as an investor, it is very difficult for you to predict the volatility of any cryptocurrency.
Artificial intelligence will help
If you invest in cryptocurrencies or are thinking of investing, then let us tell you that Artificial Intelligence can help you in this. With the help of artificial intelligence, even novice to experienced investors can take smart decisions.
As an investor, you must be aware that volatility is also seen in the stock market. But, it is easier to understand and predict the stock market than the prices of crypto. One reason for this is that the cryptocurrency is still new. Unlike the stock market, the price of a cryptocurrency is not determined on the basis of cash flow and asset availability. However, it is definitely affected by the sentiment.
Trading opportunity based on analysis, not sentiment
Experts believe that at present, about 90 percent of the crypto market is running on the basis of sentiment. This is because most investors tend to think the same way about the rise in cryptocurrency and take similar decisions. When a particular cryptocurrency is discussed in a news or social media platforms, then the same reaction is seen in the cryptocurrency. Now with the help of Recursive Neural Tensor Networks (RNTN), Artificial Intelligence Bot (AI bot) is being prepared by analyzing such discussions, on the basis of which decisions related to investment in cryptocurrencies can be taken.
How will artificial intelligence help?
The cryptocurrency is open 24 hours a day. This means that active traders are tracking its prices every minute. In such a situation, AI can collect so much data, with the help of which it will be easier to take trading decisions in cryptocurrencies. In this, historical data can also be used to find out how the price has been in the past and what trend has been seen in it. Experts say that with the help of artificial intelligence, it will help to almost eliminate the mistakes and errors caused by humans. Along with this, the whole process of trading will also be very fast.
These users are getting a chance to earn big money
Crypto trading firms such as Endor and Signal and CryptoHawk.ai platforms are providing such information to their users. Endor is calling itself the ‘Google for Predictive Analysis’. This firm is also providing such information for its small traders so that they do not have to do detailed research on their own. For better results, this firm is providing specially prepared information for its users with the help of information related to trading activities.
Signal also provides information about specially designed indicators for its novice users. Prepares only with the help of artificial intelligence from Signal. These indicators not only help in making accurate estimates, but also provide an opportunity to experienced traders and data scientists to earn money by selling their analysis. CryptoHawk.ai is a one-of-a-kind artificial intelligence platform for users investing in Bitcoin and Ethereum.
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