Cryptocurrency is the future, but will AI surpass it? One more comparison can be drawn where cryptocurrencies have changed our world, but AI will tower over it and beyond. I promise to go. Just as the change in cryptocurrencies was inevitable, so too is AI, and we can already see how it is impacting our world. Cryptocurrency is not exempt and there will be some aspects that will improve and become better. Change is inevitable, but Crypto looks set to get the most out of this new AI deal.
1. Market forecast
The future is uncertain, and humanity has made every effort to make it clear. Petabytes of data are processed every day to provide insight into what will happen, what could happen, and what should happen. The best traders go beyond intuition and blind trading and rely on reliable data to take action. What used to be done manually and by humans is rapidly becoming irreplaceable with AI, which can digest vast amounts of data and provide accurate results.
This will also be reflected in cryptocurrencies, as crypto traders will make better decisions, spot opportunities earlier than others, and take advantage of early profits. It's hard to stand out in the vast sea of cryptocurrencies, but we can already see examples like Memebet making waves and showing promising beginnings. Once officially launched, what will happen in 2025? AI will tell.
2. Personalized user experience
There are many crypto traders, but they are all unique. The same can be said of cryptocurrencies; some attract a specific demographic, while others are niche. AI can analyze user behavior, trading patterns, cryptocurrency usage, and other preferences to provide a personalized user experience that saves time and money. Gone are the days of endlessly browsing and searching for the right cryptocurrency as AI gives you what you need before you even type.
The challenges that AI may face in this area are universally valuable cryptocurrencies such as Bitcoin and Ethereum, and other cryptocurrencies gaining mainstream popularity, but these are good to have. It's a problem. As the use of AI expands, cryptocurrencies will be able to be tailored to very specific user types or smaller groups, filling any gaps in ever-growing market needs.
3. Risk management
As we have already decided, the future is unknown and full of uncertainty and risk. Humans aim to reduce the fear of the future by processing untold amounts of data, but AI can be more than a canary in the mine. By leveraging AI for risk management, crypto traders can uncover hidden potential across the entire market spectrum and beyond. Current traders cannot know everything about what will happen in the future and how each cryptocurrency will develop.
However, AI can be fed an endless database of risk factors, investment history, statistical data, and much more. With each additional asset, the AI improves, learning how cryptocurrencies work and breathe, providing traders with more accurate cryptocurrency trading and predictions.
4. Automated trading
The more the better, as AI enables automated trading and removes walls and barriers that prevent less tech-savvy traders from participating. The current state of crypto trading requires high investments in market analysis and forecasting, as well as a large amount of technical knowledge and experience. Naturally, this severely limits the number of potential users, but AI has the potential to level the playing field.
If AI is democratized in the future, it may be possible for anyone to use AI, thereby making it possible for ordinary users to apply it to cryptocurrency trading. Each cryptocurrency lives or dies by its popularity, so this influx of prospective crypto traders could be the breath of fresh air needed to further push crypto trading to new heights.
5. Preventing fraud
Fraudulent transactions are not unique to cryptocurrency trading, but occur universally. Unfortunately, when large amounts of money are involved, fraud occurs and leads to disappointing results. As the industry evolves, so too does the mischievous behavior of individuals who prey on the less fortunate. It is almost impossible to pull off such a plan today, but it is possible. Humans make mistakes due to fatigue, temporary lapses in judgment, or simply overlooking important information.
And when trading large amounts of cryptocurrencies, having AI as a backup partner can make a big difference. AI as fraud prevention in cryptocurrency trading could be integrated as a useful companion. We've seen Chat-GPT implemented on Windows, but further development could tailor it as an active AI vanguard, monitoring each of your crypto transactions and alerting you to potential dangers. becomes possible. AI can access your history and analyze it in a heartbeat. And AI provides the necessary safety net.
6. Regulatory updates
Cryptocurrency trading remains under global scrutiny and hotly debated. Some countries are very progressive, others are restrictive, and some are still undefined or have legal processes underway. Keeping track of what you can and cannot do while trading cryptocurrencies can be a daunting task, and it's easy to get lost in the legal world. But this is not the case with AI, which can digest even the most complex laws into simple explanations.
AI can also alert you to potential violations, advise you on next steps, and advise you on how to avoid legal restrictions or make the most of the situation. AI is very good at following instructions, has no morality as it is a machine, and fully respects the letter of the law.
7. DeFi Innovation
Decentralized finance is a paradigm-changing field. Finance has always been under the strict jurisdiction of central banks and governments, but cryptocurrencies have turned that concept on its head and thrown it out the window. Cryptography is not under anyone's jurisdiction. This freedom holds endless possibilities. Cryptography can solve a variety of problems, but at the moment it is limited only by imagination and creativity. AI suggests innovation possibilities, analyzes the market, and identifies missing products or products that need improvement. By analyzing a myriad of data about user needs, AI determines which customer needs are unmet, leading to the creation of new cryptocurrencies that power the DeFi market.
