How AI Is Being Applied Within the Cryptosphere

[jennysmith]

There are a number of areas in which artificial technology is showing its worth when it comes to automated trading. One of these is high-frequency trading (HFT) which relies on the analysis of technical indicators across multiple exchanges in order to respond to market-moving trades faster than the rest of the market. For example, if a trader was to place a large BTC buy order on Kraken, HFT could enable an order to be executed on another exchange almost instantly to capitalize on the price spike.

AI can also facilitate automated trading via API connected to leading exchanges. Traders can select indicators they wish the software to base its decision-making on, such as RSI and EMA, and the desired timeframe. The AI will then implement trades within parameters. Traders can backtest their settings, refine and optimize them. As time goes on, the AI’s performance should improve as the dataset at its disposal increases. Away from the crypto markets, AI is also being used for sentiment analysis, to sift through the chatter occurring on social media and determine how the community feels about particular projects, from which actionable insights can be derived.

AI isn’t a panacea that can be liberally applied to every facet of the cryptocurrency industry, nor is it going to render the smartest human traders redundant overnight. Nevertheless, its invisible hand is already pulling strings withing the sector, facilitating everything from faster order execution to detecting bots and scammers. Our AI overloards are already here in our Elgalcoin Platform.