AI might make you a smarter crypto trader
2023 is becoming the year of AI. New apps like Midjourney, DallE, and ChatGPT have proven that AI can do more than just set timers or play music on our phones. This technology has reached the point where it can be creative and analytical. So what about... profitable? Here are some thoughts about using AI to supercharge your crypto trading.
Can I trust AI with my money?
It's one thing to ask an AI to help you write a blog post. It's another thing to let it play with your money. But some people have already tried.
In one experiment circulating on Twitter, someone asked ChatGPT to tell them how to make money and they would buy, sell, or do whatever ChatGPT advised. The project has been going on for a month. Will it make money? We'll see.
But ChatGPT has even moved one step beyond that, and may soon be ready to run a business on its own.
So even if you think AI isn't ready to handle your money now, it won't be long.
The history of AI and finance
Using novel AI tools like ChatGPT to help you trade may be a new idea, but using software to automate your actions is not. Betterment.com launched the first so-called "robo advisor" in 2008, and they have been an increasingly popular choice for individuals who want an inexpensive, hands-off way to manage their equities portfolios. These software-based services can buy, sell, rebalance, and even tax-loss harvest to help minimize taxes. Although, there are some question marks over how well these services actually perform.
Nonetheless, computerized trading is not just for individuals – institutions have done it for years too. Michael Lewis' 2014 book, "Flash Boys," documented how large investment firms used automated high frequency trading to wring extra profits from the stock market. And while the activity that Lewis' book documented may have been illegal, most stock market trading is now conducted by computers, rather than humans.
In other words, the age of automated trading is already here – so what are you waiting for?
AI crypto trading
You're ready to put AI to work to help with your crypto trading. But how? Here are some ideas to get you started thinking about how AI can work for you.
Crypto is 24-7; humans are not. Sooner or later, even the most devoted trader will need to look away from the screen to eat, sleep, or maybe even go outside. Fortunately, OKX offers a wide-array of trading bots programmed to keep an eye on your portfolio and execute institutional grade trading strategies, even when you're not available.
Explore the OKX trading bots here.
There are thousands of cryptocurrencies, and new ones are launching every day. What if the coin of your dreams is out there and you just don't have time to find it? This is where an AI bot like Lunar Crush or BloombergGPT really shines.
Even a simple ChatGPT prompt like one of the below can save you hours of research:
- Write me a report on the top 10 best cryptocurrency projects to airdrop farm in April 2023, including a summary of each project's utility and the steps to airdrop farm it.
- Write me a report on the most popular NFT projects that launched in 2023.
- Write me a report on the top 10 largest liquid staking derivative projects on Ethereum, including a summary of each.
You may not get all the information you need to make a final decision, but you'll avoid the endless scrolling through Twitter posts and Google links.
Start your own project
AI gives you superpowers. You're now an artist, a graphic designer, a computer programmer, and a copywriter. If you have ever wanted to launch a dApp, NFT project, or cryptocurrency, it's never been easier. Now, while you're finding other people's projects to back, you could build a project for other people to invest in you.
NOTHING IN THIS BLOG IS A SOLICITATION TO BUY OR SELL DIGITAL ASSETS. OKX DOES NOT ENDORSE ANY PARTICULAR DIGITAL ASSET OR STRATEGY. DIGITAL ASSETS HOLDINGS INVOLVE A HIGH DEGREE OF RISK, CAN FLUCTUATE GREATLY ON ANY GIVEN DAY, AND MAY EVEN BECOME WORTHLESS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING OR HOLDING DIGITAL CURRENCIES IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. OKX DOES NOT PROVIDE LEGAL, TAX, INVESTMENT, OR OTHER ADVICE. PLEASE CONSULT YOUR LEGAL/TAX/INVESTMENT PROFESSIONAL FOR QUESTIONS ABOUT YOUR SPECIFIC CIRCUMSTANCE