Can a robot trade crypto?

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Written By Godfrey

 

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There is a new way to trade cryptocurrencies, and the answer might surprise you. AI (artificial intelligence) can apply complex models to analyze the values of digital currencies to enable you to make trading decisions more than 50% more efficiently.

AI is also able to automate different tasks that are time-consuming for humans when it comes to trading cryptocurrencies as well, eliminating all of the tedium involved with this process that an individual normally has. This new technology opens up a whole new world for traders and investors looking for an edge on their competition.

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More and more traders are searching for ways to control their trading activities and reduce the odds of being outpaced by the markets. To do this, many users turn to robots or automated trading systems that follow basic trading strategies and make decisions for a user.

The idea is that users of robots can monitor their performance with ease so they know whether or not they are making money when they use these tools.

AI Cryto trading

Is AI Cryto trading more efficient than human trading?

When it comes to cryptocurrency trading with robots, the AI can improve traders’ performance by up to 50%, making it easier to make decisions about the best time for trading. But this doesn’t mean AI is full proof.

Because an AI analysis data more efficiently, it should point you to the direction that the market is actually supposed to go in a fraction of the time it would take a human, but we all know the market isn’t made up of ones and zeros. So AI can be off sometimes. Actually a lot of times.

AI trading can be a pretty big help, especially in the world of crypto. Traders are always looking for ways to get an edge on their competition and some might want to automate their trades. But whether they choose to use artificial intelligence or not, it’s still important to note that there is no way to fully automate trading and make money 100% of the time.

Will AI disrupt traditional trading?

While AI has made trading more efficient, most users won’t get their money back when they lose with this technology. To understand why this is the case you first need to understand the nature of traditional trading and how the markets work overall. Traders have to deal with price slippage when they use any type of automated trading system.

What is price slippage?

Price slippage is a big problem that most automated trading systems struggle with. Basically, price slippage occurs when computers are still too slow to catch market trends and adapt quickly.

If you want to use an automated trading system, then you should understand how it works. For example, algorithmic trading systems like Robinhood use statistical models to analyze the prices of different assets in real-time and make predictions about which ones perform the best in the near future.

Known Crypto bots

While there are a lot of bots that trade the markets, the ones that are most popular are the ones that use artificial intelligence. There are a few trading bots out there that actually use AI for fresh eyes to analyze certain trading situations.

For example, Quantum AI relies on AI and can make day-to-day predictions about which currencies will rise and fall faster than others. It also tries to identify patterns in previous price movements before making a trade so it can be more accurate when determining its own (AI) next move.

Applications for AI trading

Although it’s hard to predict the future, experts believe that our society will have more and more applications for AI in the near future. The downside is that it will make the markets move faster but will also be dangerous for traders because it could tip them off about when and where to trade.

Some companies have even started using certain algorithms to compete with traditional traders. These companies actually use price information from cryptocurrency exchanges so they can make trades on their own without having access to very much actual information about what is going on in the market.

Conclusion

There is no doubt that AI will soon be the “go-to” technology for professional traders, as well as everyday investors. Cryptocurrency has made it easier to trade, and algorithms are starting to catch up.

As you can imagine, this opens up a whole world of opportunities for those individuals who want their money to work for them without having to face the same issues that other traders do.


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