The student media organization of California State University Northridge

Daily Sundial

The student media organization of California State University Northridge

Daily Sundial

The student media organization of California State University Northridge

Daily Sundial

How to Integrate AI into Your Existing Crypto Trading Practices?


Branded Content by Cosmic Press

What’s up crypto traders? I know a ton of you have gotten into bitcoin, Ethereum and all the other cryptocurrencies lately hoping to get rich. Maybe you’ve made some money, maybe you’ve lost your allowance – either way, it’s a crazy rollercoaster ride, right?

The crypto markets are just so volatile and unpredictable. One day bitcoin is soaring, the next it’s plummeting and nobody knows why. Between all the charts, news, influencer hype, and global trading action happening 24/7, it’s absolutely mind-boggling for any human trader to process. How can you possibly keep up and make smart, profitable trades?

Well, what if I told you there’s a cool form of technology that can analyze all that dizzying market data for you around the clock? I’m talking about artificial intelligence (AI) – which is basically code that simulates human intelligence and can solve crazy complex problems at lightning speeds. 

Pretty neat, right? Instead of you having to spend every waking hour glued to screens and charts, an AI program could automate your trading while you sleep, go to school, hang with friends or whatever. No more FOMO or feeling overwhelmed!

So let me break down some major ways cryptocurrency traders are using AI to up their game:

AI Trading Bots

This is hands-down one of the most popular AI tools for crypto. Trading bots are pre-built software programs that will automatically execute buy and sell orders for you based on the parameters you set. You simply tell the bot things like:

“Buy $500 worth of Bitcoin anytime the price dips below $25,000”

“Sell all my Dogecoin holdings if trade volume falls below 1 million coins per hour”

“Make trades aiming for 2% profit every 4 hours while limiting losses to 1%”

And once you configure the settings, the AI trading bot will handle all the market monitoring and order entries/exits exactly as coded. No emotion, no human errors, no forgetting to set alarms – just pure robotic precision 24/7!

There are lots of trading bots and platforms out there now like Bitcoin Millionaire, some are designed for particular strategies like scalping, arbitrage, futures/options, or portfolios. Many have cool voice control too, so you can literally yell out commands and your trusty AI bot will execute them.

AI Market Data Analysis

In addition to automating trades, you can leverage AI to continuously analyze the vast sea of data influencing crypto prices – things like social media sentiment, news/reports, on-chain metrics, global trading activity and more.

To a human, comprehending all those variables is utterly incomprehensible. But AI models can detect even the subtlest correlations and patterns within billions of data points across dozens of sources to predict future price movements and trends.

For example, an AI might identify steadily increasing Bitcoin wallet addresses on the blockchain as a leading signal of growth in institutional investment…which usually precipitates rallies a few weeks later. Or it may spot booming social media hype around a fresh meme coin like Shiba Doge accompanied by wild exchange inflows – a sign of an incoming price spike and peak buy opportunity.

Instead of trading on hunches and TA guesswork, AI models can provide you with objective forecasts like:

“Our data shows a 79% probability of Ethereum surpassing $2400 in the next 30 days based on positive fund inflows, decreasing sell volumes, and high social media FOMO sentiment.”

“Time to take profits – we detect heightened FUD around regulation events signaling an imminent 17% correction in Bitcoin markets over the next 2 weeks.”

With those AI-powered predictive insights in hand, you can execute trades with much more confidence rather than just gambling or following hype blindly.

There are sites that offer AI signals and data feeds you can subscribe to integrate into your trading. Or you can use AI workflow automation platforms to build your own models by connecting various data sources and services.

AI Portfolio Management

Another powerful way to use AI for crypto is automating your portfolio management. This encompasses things like:

  • Asset and capital allocation
  • Position sizing
  • Risk management
  • Rebalancing
  • Tax optimization

AI can continuously analyze your complete holdings and suggest moves to maintain your desired risk tolerance, target allocation weightings, profit-taking levels and more. It removes the human emotion and biases that often cause us to get greedy or frozen during market swings.

For example, an AI portfolio manager might recommend:

“You are currently overexposed to Ethereum at 52% of portfolio value. We advise taking some profits and rebalancing to your 35% target allocation to reduce drawdown risk.”

Or it may alert you when unusual volatility demands a change:

“WARNING: 38% portfolio drawdown limit has been breached due to catastrophic Terra/Luna collapse. We have executed your contingency plan by selling all Luna positions at a 50% loss to preserve remaining capital.”

The AI is like having a professional wealth manager adjusting your crypto portfolio around the clock and automatically executing trades to maintain your strategy without any effort on your part.

AI Crypto Trading Platforms

So those are some of the big ways AI can assist with your crypto trading activities – automating executions, analyzing data, managing portfolios, and more. The question is, how can you as an individual trader implement these AI capabilities?

Well thankfully it’s becoming easier than ever, as there are a bunch of platforms rolling out AI tools like Quantum AI. 

So to start taking advantage of AI bots like Quantum AI yourself, you can simply sign up for one or more of those platforms and their product offerings. Most have affordable subscriptions or usage-based pricing so you can begin small.

In Conclusion

The key is to remain hands-on and view AI as powerful technological assistance, not a complete trading solution. Stay aware of how the AI models work, monitor their performance, and refine their configurations if they become unstable or unprofitable. An AI is only as intelligent as the data and code its creator provides!

So what are you waiting for? Start exploring some of those AI platforms and put a crypto robot assistant to work for you today!

Photo by ThisIsEngineering

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