Seasoned investor and tech enthusiast, Daniel Calugar, discusses emerging technologies and explains how artificial intelligence is used as a tool in the cryptocurrency market.
Artificial intelligence (AI) has been making a significant impact in many traditional financial markets, and various hedge funds are now utilizing AI to generate better returns on trades. The stock market is an unending supply of empirical data, so AI fits into the trading puzzle. Machine learning requires vast amounts of empirical data, which is why AI and the stock market go hand in hand.
AI has impacted the crypto sector at a much slower pace than traditional stock markets, but the future is bright for AI as it is predicted to be the go-to solution for crypto trades.
Daniel Calugar, an experienced financial investor with a background in business, law, and computer science, has observed the advancements in artificial intelligence and the innovation it brings to the emerging cryptocurrency market.
“When looking at the research behind the future of AI, the industry is predicted to grow to 190 billion dollars by 2025,” said Calugar.
With that immense amount of growth, AI will undoubtedly converge with Blockchain, which supports digital currency like Bitcoin, Litecoin, and Ethereum and grants distribution of digital information without being copied. While AI examines and produces notable insight from data to generate value, Blockchain authorizes secure storage and sharing avenue of data.
Senno, a platform that has utilized Blockchain and AI technologies and elements of machine learning automatically performs analysis and produces quick results. Senno has partnered with the app CryptoScanner that helps traders develop strategies through the use of AI.
Companies like Microsoft are upgrading machine learning for Blockchain and discovering ways to develop well-organized collaborative machine learning models that public blockchains can host. Microsoft is calling their framework Decentralized & Collaborative AI on Blockchain intending to be an effort to decentralize AI and make it a more collaborative forum using Blockchain.
In the crypto sphere, high-frequency trading (HFT) is gaining more popularity. For HFT, specific technical indicators are examined over multiple exchange platforms. HFT strives to respond faster to trades and utilize the benefit of price spikes across bitcoin wallets or other trading platforms. AI is handy in HFT as there is a high volume of empirical data to learn and can be utilized as an automation tool. If an individual trader chooses to use AI trading tools, the software’s decision-making can be customized. Customization involves various selections, including setting timeframes, price thresholds, and unique indicators. Over time, the need for direct human involvement will decrease as the software’s decision-making enhances.
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