Artificial intelligence, although dating back to the middle of the 20th century, has witnessed unprecedented growth in the recent years. At the same time, AI has not had a smooth ride. There are constraints, limitations, and restrictions, as well as myths and speculations that surrounded AI development.
Now, one of the trends that are gaining momentum is the fusion of AI and cryptocurrencies. AI-based cryptocurrency trading solutions leverage the strong suits of both technologies producing truly amazing results. However, the limitations affecting the AI sectors can also have their influence on its use in cryptocurrency trading.
We will briefly look at the obstacles that are standing in the way of AI acceptance and general adoption. Some things are results of the current state of science and engineering. At the same time, other things stem from people’s wariness and distrust towards artificial intelligence.
We would like to ask only one thing of people reading this short article – to be open-minded. Keeping your mind open will help you understand the advantages that the new technology offers. At the same time, you will be more critical in evaluating the limitations AI faces today. Finally, you will be able to appreciate the opportunity that is available to you with an AI-based cryptocurrency trading solution.
Lack of data
Investment decisions rely on the results of the analysis of historical data and the current trends and fluctuations. The results of such analysis can help to build predictions of future price behavior and, thus, generate the most optimal investment recommendations.
Bitcoin was invented in 2008, and in the past decade, it has only begun to pick up speed. It was the first cryptocurrency ever created. The second most popular cryptocurrency, Ether, first came to be in 2013. Since the creation of Bitcoin and the emergence of blockchain, many other cryptocurrencies have started circulation, some of them just a few months old.
The short time that has elapsed since the cryptocurrency invention explains the lack of sufficient analytical data that can be used for investment predictions. The traditional stock market, on the contrary, has accumulated more than one hundred years worth of financial data.
This limitation can be to a great extent balanced by the implementation of AI-driven algorithms generating optimal investment decisions. This is the reason why funds implement AI to secure greater profit for their investors.
No matter whether the trading analytics concerns cryptocurrencies or fiat, it is still based on the algorithms that are products of a human mind. This means that the limitations and biases of an average person or brain behind the concept might shine through the algorithm.
An expert calculating the trading algorithm uses the data available to them. However, it is impossible for a human brain to process all trends and statistics that exist in the world of investments at the same time. Thus, the data forming the basis of the trading algorithm may be incomplete or outdated.
Another concern is that experts may be driven by personal gain. Therefore, their algorithms may be not as transparent and unbiased as they should be.
Finally, human beings may be simply tired or distracted, and fail to notice an important factor.
In this respect, AI seems to be an infallible solution, as it is totally immune to the human factor. With your investment decisions generated by artificial intelligence, you are sure to get the most accurate, optimal and profitable recommendation.
One of the pre-requisites of successful cryptocurrency trading is the public trust. To win the investors’ trust, the company, on the one hand, needs to show that its AI-driven investment platform can process data and produce investment recommendations better than the human brain. On the other hand, it needs to convince the investors that cryptocurrency is a reliable long-term investment. At the moment, the world is excited over cryptocurrencies and the possibilities they offer. On the other hand, there are still too many questions about their long-term reliability. For this reason, cryptocurrencies still have not enjoyed international acceptance as a means of exchange.
Many people still have fears and concerns about cryptocurrencies and may be reluctant to invest their money into virtual currency. However, as the blockchain technology and cryptocurrency trading are spreading and gaining popularity, people start to build trust in these investment instruments, too.
Can you trust AI-driven funds?
Can AI analyze and predict cryptocurrency growth and recession trends better than a human? The answer is yes. The available data of cryptocurrency behavior may be still insufficient in certain aspects. At the same time, artificial intelligence can make the most of it to outperform funds that rely on human decision-making.
Although the concerns that we outlined above do exist, the advantages of AI-based investment funds are obvious. A professionally organized investment company can integrate the powerful AI technology with the professionalism and experience of the experts who create the decision-making algorithms.
A wise approach to investment
The most secure and reliable way of profiting from cryptocurrency trading while protecting your investment is choosing a trusted company to handle your assets. A trusted company has a transparent message to its users about the methodology it applies to generate investment strategies. Such company has a team of experts that create and maintain the AI functionality and develop the investment algorithms.
The Wisewolf Fund has been built with all these concerns in mind. The smart AI algorithm is capable of analyzing tons of cryptocurrency trading data and finding the opportunities that may be invisible to humans. The fund bases its trading on secure and transparent identification and verification procedures. This way, its investors can be sure that both their personal data and their finances are safe.
What is especially worth noting is that you can become part of this enterprise by investing as little as $10. Such a small amount can open the door to secure financial transactions and high returns that can guarantee your safety and prosperity.
It’s important to realize, that despite the limitations that AI-driven cryptocurrency investment funds face, the technology gets better with each passing day. Artificial intelligence is constantly learning and the algorithms it generates become more accurate and effective. At the same time, the amount of cryptocurrency trading analytics is growing, which gives more opportunities to create more realistic predictions.