There are thousands of cryptocurrencies and related projects, each with its white papers, team profiles, and investor profiles. Adding to this 24-hour marketplace and the unprecedented and ever-changing consumption of data – from social media to financial and business data, it’s too hard for even the most experienced crypto expert to comprehend. The truth is that the markets have outpaced human capabilities, and in order to keep up, we need to develop our tools to match them.
This is where artificial intelligence (AI) takes center stage. It can recognize patterns in complex data sets and generate insights that lead to better trading decisions. The rise of artificial intelligence technology has led companies and software developers to explore the convergence of AI and blockchain. But how is it currently being used, where are the opportunities, and what else needs to be done?
How is AI being Used in Traditional Finance?
In the traditional financial world, artificial intelligence is used by the world’s top hedge funds. Hedge funds are financial institutions that manage the capital of wealthy investors (usually the richest 1%) and invest in various (often unique) assets and securities. Until recently, large financial institutions such as hedge funds have used AI in a reasonably basic way – to automate trades based on pre-existing strategies. However, a new generation of machine-learning-driven hedge funds is taking advantage of the fact that computers are good at finding patterns in raw data – far beyond the capabilities of humans.
Artificial intelligence technology offers enormous benefits in almost every aspect of hedge fund management, from trade execution to portfolio management and risk management. Thanks to three key advantages, it can consistently beat the market with a success rate far exceeding human capabilities.
#1 Predicting market movements
Artificial intelligence uses predictive analytics, which uses statistical and modeling techniques to predict future outcomes based on current and historical data. This is very helpful in determining which cryptocurrencies may be profitable and the best time to buy and sell.
#2 Portfolio Management
Intelligent AI algorithms can process massive amounts of data much faster than humans, making themselves ideal for building and managing portfolios. These algorithms focus on dozens of different factors or indicators that predict future price movements and then combine these into a model to predict market direction with high accuracy.
#3 Risk Management
Hedge funds and risk management have a symbiotic relationship. The latter is the key to the success of the former, without which the industry would not exist. According to the Chartered Financial Analyst (CFA) Institute: Risk management is a vital part of any active investment strategy. Risk management aims to reduce risk and prevent losses caused by financial market volatility. Since risk management relies on data, artificial intelligence can help hedge funds get better information about their investments and positions. For example, AI can track social media conversations of companies that may be important to your portfolio so that you can understand the overall sentiment of certain assets.
In 2018, tech industry veteran Veronica Wong founded SafePal with two other like-minded co-founders. In just a few years, SafePal has gained the backing of industry giants like Cryptocurrency and grown from an unassuming startup to a global enterprise that brings the freedom and power of Cryptocurrency to millions of people — but it’s only just begun.
The promise of artificial intelligence in decentralized finance
Artificial Intelligence (AI) promises to change everything from how we do business to how we go about our daily lives, and cryptocurrencies are no exceptions. Artificial intelligence (AI) is not a new concept to help drive better investment decisions. AI-led hedge funds are outperforming the global hedge fund industry by 22%. The decentralized finance (Defi) community is starting to adopt this approach, which is developing algorithms that can trade on their own without human intervention. But unlike traditional hedge funds, these sophisticated tools are not limited to the wealthiest 1%.
This is because the transparency of the blockchain means that there is much more public data available to train AI agents than in traditional markets. As a result, it is cheaper and easier to create complex trading instruments that can be used by all investors, not just those with large amounts of trading capital. For retail investors, this could mean no longer needing to spend time。
How does it work in practice?
AI Smart Quantitative Trading’s multi-tier, multi-cluster system architecture provides a secure and reliable data bridge for intelligent trading systems. There are two significant changes in product technology and business in the AI Smart Quantitative Trading network. The first change is the replacement of human resources with intelligent robots, and the second is that quantitative trading can capture trading orders from global digital platforms 24 hours a day. Safepal focuses on the blockchain digital industry sector and provides secure technology services to its clients.
As a top global financial services company, the core members of Safepal understand this. Therefore, they made a perfect ecological layout at the beginning of the project to create a symbiotic and co-prosperous digital currency ecology. AI Crypto Trading can capture trade orders on all global cryptocurrency trading platforms 24 hours a day without the need to keep reading the tapes. With a huge trading volume and high-speed live trading business interface, the system buys low and sells high by accumulating tens of thousands of experiences and quantified orders, thus generating countless profits from the huge trading volume. Safepal AI crypto trading brings dividends that reward every owner. It enables each participant to achieve fruitful results in building a future. Artificial intelligence-powered Defi products can provide sophisticated users with unprecedented insight. However, everyday users can take advantage of pre-packaged solutions managed by AI. This insight is, of course, invaluable in determining trading decisions. Then there are neural networks – a new class of deep learning networks that have gained much attention in the past year and can effectively process sequential information. These are used for price forecasting and are designed to understand and exploit cryptocurrency price fluctuations.
The next step will be transitioning from machine learning methods to a technique known as reinforcement machine learning. Using this approach means that the AI will model the impact of its behavior on the market. This is particularly valuable for low-liquidity cottage coins.
Safepal, an AI-powered crypto trading bot that helps you save time by automating your trading, is topping our list of the best AI crypto trading bots. This versatile platform combines its centrality features, replication services, social trading, and portfolio management services to offer a wide range of services.
The bottom line
We haven’t even begun seeing how AI will affect the crypto market and the blockchain space. Think about it; AI is automation, and in many cases, it can perform tasks faster and more accurately than humans. The result is increased protection from the lows of the crypto market and, therefore, greater profits. One of the most exciting parts of this is that it can unlock profits not just for the 1% of users but for all users – the first time that complex financial products have been democratized on a global scale.
How Safepal makes a profit
1. The price API developed by SafePal automatically captures price differences between different exchanges.
2. The system automatically sets up trading strategies based on the data.
3. The user enters the SafePal system and obtains an SBT identity.
4. The system automatically arbitrage based on the user’s SBT identity.
SafePal AI Introduction：https://www.youtube.com/watch?v=BsfIxw_P5tE&t
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