From Bull Runs to Bear Markets: How Traders are Using AI Technology for Crypto Trading

From smartphones to chatbots, AI is already omnipresent in our digital lives. You just don’t know it yet. The momentum behind AI is growing, thanks in part to the vast amounts of data that computers can gather about our likes, purchases, and actions on a daily basis. 

And this directly helps experts in AI research to utilize all of that data to train machines how to learn and anticipate what we want—or despise. That’s why, in recent years, Artificial Intelligence has emerged as a game-changing technology, particularly in the trading world.

Basically, AI technology is a branch of computer science that focuses on the development of intelligent machines. And these AI-automated machines help individuals to perform regular tasks that typically require human intelligence.

To that end, a highly popular AI-based language model, ChatGPT, recently gained a significant amount of traction. People around the world are using this application for multiple purposes. Meanwhile, the utilization of this AI module for trading is recently creating a buzz in the trading community.

So, rather than wasting time, let’s first discuss what ChatGPT is and why is it gaining so much traction. 

What is ChatGPT & Why people are Using AI Technology for Crypto Trading?

ChatGPT is an AI-based language model developed by San Francisco-based AI research company OpenAI. This AI module processes natural language text and generates responses to queries. 

In general, it’s basically a large-scale transformer-based language model trained on massive amounts of text data. This makes it capable of understanding complex language structures and generating human-like responses. And not just that, but its advanced language processing capabilities also make it a valuable tool for various applications, including trading. 

This clearly indicates why ChatGPT is gaining so much traction in a very short period of time. This can also be seen as the AI module also cross its one million user login in just 5 days after its release, breaking all the previous records. 

ChatGPT for Crypto Trading

Source: Digital Information World

Meanwhile, ChatGPT’s language processing capabilities make it useful in several other applications as well. This includes customer support, content generation, and data analysis. However, its most significant impact has been in the trading world.

Recent reports reveal that the AI module is being used by individuals to predict market trends and make trading decisions. So, let’s see how people are using this AI Technology for Crypto Trading. 

How people are using ChatGPT for Trading?

In the past few months, crypto traders are increasingly turning towards ChatGPT for using this AI Technology for Crypto Trading. This AI module is assisting both newcomers and experienced traders to get a competitive advantage in the current market scenario. 

Basically, crypto traders are using ChatGPT in a variety of ways. But the first and the most utilized way is by commanding the AI module to prepare a technical analysis/price analysis of a particular asset. This helps traders to better understand the current market trend and some of the key resistance and support levels that the asset is currently facing. 

It can also analyze financial reports and company announcements to determine the impact on the market and generate trading signals accordingly.

In addition, people are also using this AI module to write scripts for deploying trading bots on live charts. This strategy helps traders to get the buy and sell signals directly on the live chart, making their investment decision more fundamental. 

AI Tech for Crypto Trading

Furthermore, newcomers are also using ChatGPT as a source of trading educational content. The AI module helps newcomers to better understand the terminologies and strategies related to trading. This can help them to better understand the market in a broader way. 

However, ChatGPT is not the only AI module that is currently helping traders and newcomers to make better investment decisions. At the moment, there are dozens of AI applications that are quite similar to the abovementioned AI module.

Other AI Applications with Similar Functionalities

As artificial intelligence (AI) continues to advance, its applications in the trading sector have increased significantly. To that end, let’s discuss three AI applications that function quite similarly to ChatGPT in terms of making trading strategies. 

  • AlphaSense: It’s a market intelligence platform that employs artificial intelligence to assist professionals to make crucial investment decisions. Basically, the company aggregates textual content and data from sources like Goldman Sachs, J.P. Morgan, and Morgan Stanley to create a fundamental analysis of an asset.

In addition, AlphaSense also combs through hundreds of documents, market reports, and press releases using AI trading technology to provide users with better investment guidance.

  • TrenSpider: It is a one-of-a-kind set of integrated tools that assist in market technical research and reduce traders’ grunt work. 

This AI-powered software creates “smart charts” that forecast profitable trading opportunities. With 27 years of data, a trader may back-test its trading opportunities. It makes it easier for traders to find and plan profitable trades.

  • Sigmoidal: This application uses artificial intelligence to discover correlations between securities and capital market expectations. It also uses machine learning to automate the buying and selling of securities. 

From the proposal to the final piece, the company provides end-to-end artificial intelligence and robotic process automation services. In general, this application assists decision-making in investment analysis.

This indicates that the growing emergence of AI will definitely change the way of earning in the near future. And that’s the reason why several prominent figures, like Elon Musk & Bill Gates, are backing AI technology in its initial phase. 

AI: Is it the Future?

AI is undoubtedly the future, and its impact on various industries will continue to grow. In the trading world, AI-based tools like ChatGPT will become more prevalent, and trading decisions will increasingly be made by machines.

That’s why in a press release in January 2023, Microsoft confirmed a fresh multi-year investment in OpenAI, the company behind ChatGPT.

In addition, the founder of Microsoft, Bill Gates, in the same month also asserted that AI has the potential to revolutionize the community in the near future. He said, 

“AI is the major one. I don’t think Web3 was that big, or that the metaverse stuff was revolutionary on its own, but AI is.”

Furthermore, the Dogecoin father, Elon Musk, also shifted its stance from cryptocurrencies to AI. In a recent tweet, Musk added that he used to be a crypto guy, but now he is turning his attention to AI. This tweet from Musk created a buzz in the crypto community as he was known for his vocal support for crypto. 

Using AI Technology for Crypto Trading

These recent assertions from prominent figures clearly indicate that AI will play a key role in shaping the future of the internet in the near future. 

Conclusion

Artificial Intelligence (AI) tools are changing the way people trade cryptocurrencies. With their advanced functionalities and ease of use, they have become a popular tool for individuals looking to make informed decisions and minimize risks in their crypto trading activities. 

Furthermore, as AI continues to evolve, we can expect to see more innovative tools and applications that will make trading easier, faster, and more profitable for everyone. And not just that, but it will also transform the way of performing regular tasks in the times to come. 

To know more about how to use AI Technology for Crypto Trading, stay tuned with SunCrypto Academy.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date. Occasionally unintended errors or misprints may occur. We recommend you to please do your own research or consult an expert before making any investment decision. You may write to us at [email protected].

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