Markets
Impact and future of artificial intelligence (AI) on the cryptocurrency market
Artificial Intelligence is quickly becoming popular in most industries, including crypto. The idea of machine learning and cutting-edge programming to perform advanced tasks has generated widespread research. This has led to an increase in infused buzzwords in many industries, creating both positives and controversies.
AI has already made its footprint in the crypto market with investors eager for more trading functionalities, market utility and analysis. For developers, technology makes things easier by expanding decentralized programs and applications. However, there are some challenges involved pointed out by political observers. Here are the impact of
AI in the cryptocurrency market.
Artificial Intelligence in Trading
Artificial intelligence can be used to analyze large amounts of data with continuous algorithms that can help traders in some cases. AI tools can pinpoint important market indices, trends, and technical analysis for trading. Most technologies can also be used to automatically execute trades, making seamless transactions for users.
Machine language can help technology pull industry news and data into community spaces, as well as current sentiment.
Regulations and Security
Authorities can leverage AI to provide an additional layer of security to eliminate certain types of scams. Crypto executives can also implement the technology for a similar purpose in applications. The advanced algorithm can help with hack cases and fraud detection.
However, Artificial Intelligence can be wrongly used to launch some advanced level scams that can cause losses of millions. This is a downside to the positives, widespread losses could cause a decline in sentiment, plunging the asset class.
Impact on AI Coins
In addition to price and market analysis, artificial intelligence has contributed to the growth of market capitalization through AI Coins. AI coins tend to increase with the development of large companies like Nvidia. This month, the chipmaker became the largest company by market value, and AI coin prices have soared.
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is keen on learning about emerging technologies and keeps an eye on the latest news. Staying up to date with the trends, David has reported on various niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David enjoys cycling and horse riding.