Top 10 Ways AI Can Make You a Better Trader

There is a quiet integration between AI and blockchain technologies that shouldn’t be ignored. In some industries, AI is seen as a threat. However, for crypto traders, it’s a powerful tool that can significantly increase your efficiency, security, and capabilities. Here are the 10 ways AI can make you a better trader.

1. News and Updates

One way in which AI will improve your trading soon is by increasing your access to valuable news and updates. AI systems already exist that can monitor major developments across the market and relay the information back to you in real-time. This data can be sourced from news channels, oracles, exchanges, or the sources directly.

Now imagine asking an AI protocol to provide vital data directly related to a specific project that otherwise would have been difficult to gather. You could even have it simplify the explanation of technical aspects of the developments. In this way, you save time and effort while remaining on the cutting edge of the market.

2. Organization

It's no secret that the more organized you are, the higher your chances of success in any business venture. Keeping track of the crypto market can be a tedious and time-consuming task, whether this be new project launches, airdrops, hard-forks, upgrades, and much more.

An AI assistant can streamline your organization and help you stay current on all relevant data. These protocols can source info, validate its correctness, and break it down into summaries which enables you to digest more data effectively.

3. Automate Trades

Once you get the info, it's time to trade. AI could make this process easier than ever. Programs that automate trading, such as us trading bots and social trading protocols, have been in use for a long time in all markets. These programs add significant advantages to your strategy.

An automated trading strategy eliminates human emotion and ensures you obtain 24/7 market monitoring capabilities. Combining automated trades with AI technology adds a plethora of new functionality to these systems. Think of a preset trade that would execute at a certain value or if a company hired a particular executive or developer.

4. Large Language Models

One of the biggest advantages AI brings to the world is using LLMs. AI text models have come a long way over the last decade, and today's systems can understand text and voice prompts effectively. These systems are already in use across multiple industries.

You can simply text or speak your trade settings to exchanges. This approach would eliminate technical barriers and improve adoption as anyone would feel comfortable with the new tech. Language model AI will be the primary way you interact with many platforms in the future.

5. Technical Analysis

One of the best ways to improve your trading results is to master predicting patterns. People use thousands of methods to apply pattern prediction to the market, which are known as technical indicators. These tools can help to improve your consistency.

Unfortunately, learning how to use these tools takes some time and effort. AI systems would eliminate these aspects of technical analysis for most people. They could ask the AI to conduct the analysis and give them a score on how closely it matches their trading strategy. They could even permit the system to execute the trade.

6. Reduce Costs

AI will help traders reduce costs in many ways. On the back end, AI systems will make it more affordable for platforms to offer additional services. For example, a small start-up may not be able to afford a 24/7 customer helpline, but an AI version could be within their budget.

Traders can also use AI systems to find the exchanges with the best rates and promotions. They could even automate the process of moving funds from one exchange to another. All of these actions help to reduce time and improve efficiency.

7. Security

Another way in which AI can help you trade is by improving your security. AI systems could be set up to alert you if network hacks occur and even to make trades based on the actions. They could also monitor major exchanges as part of your security.

AI systems will play a bigger role in personal security for blockchain users in the future as well. You will soon see AI-assisted wallets that can notify you of security risks. These platforms could make sending and receiving crypto safe and easy as a text prompt.

8. Review Smart Contracts

DeFi traders must be diligent when trading as there are far fewer regulations at this end of the industry. As such, many scammers will use techniques such as using the same name and token as another project. Their goal is to confuse new traders who don’t have the technical know-how or experience to verify a smart contract address.

AI systems can streamline the smart contract verification process from all angles. Traders can leverage these tools to verify the validity of a contract address. They could even ask the AI to scan the address for security risks or other prerequisites.

9. Monitor Whales

Whales are massive token holders. These mega-traders have a lot of influence in the market, and their moves often precede or result in market movements. As such, monitoring whale movements has become a vital aspect of many traders' strategies.

AI systems like Laika provide real-time wallet monitoring capabilities. The system enables you to use text prompts to monitor wallet addresses across blockchains. For example, you could set up the AI to monitor the top 10 Ethereum wallet addresses and what they are investing in.

10. Find the Best Online Communities

Trading cryptocurrencies can be fun, but as with most activities, it can also be more fulfilling to share your experiences with the community. Trading groups and other social media conversations can help to keep you engaged and inspired. They also help to introduce new talent to the market. However, not all groups provide valid and helpful information.

AI systems can help traders to find the best groups to join. They can also be used to verify information received in the group and to organize collaborations more efficiently. In this way, AI may power your next trading community experience.

AI – A Traders Best Friend

Don’t wait too long to start integrating AI into your trading strategy. These tools continue to improve in their capabilities and availability. As such, you can expect to see a massive uptick in the number of people using AI in the future to become a more effective, better trader.

You can learn more about exciting blockchain projects here.