KEYTAKEAWAYS
- AI tokens support blockchain projects and offer liquid staking, enhancing investment flexibility. Notable examples include NEAR, FET, and RENDER, each serving unique purposes.
- AI-powered crypto investment analysis tools provide faster, more accurate price predictions and recommendations by analyzing vast amounts of market data and trends.
- AI crypto trading bots automate trading strategies, with popular platforms like Dash 2 Trade, Learn2Trade, and Cryptohopper offering features for various skill levels.
CONTENT
Explore the world of AI crypto trading tools with CoinRank: AI tokens, investment analysis, and trading bots. Discover how AI is revolutionizing cryptocurrency investments for both novice and experienced traders.
WHY DO WE NEED AI CRYPTO TRADING TOOLS?
AI has become an indispensable part of our lives in recent years, from basic research, data compilation, translation to programming. For cryptocurrency investors, what help can AI provide? In this article, we categorize AI crypto trading tools into 3 main uses and introduce corresponding practical examples for readers’ reference, enabling readers to invest more intelligently and efficiently in the crypto market.
AI CRYPTO TRADING TOOLS TYPE 1: AI TOKENS
AI tokens refer to tokens on the blockchain that support AI-related projects, applications, and services. Examples include decentralized AI markets and AI portfolio management. These tokens can grant holders community governance rights or be used to pay transaction fees on AI platforms.
Investors can even use these tokens for liquid staking. Traditional crypto staking requires investors to deposit cryptocurrencies on a certain chain, during which investors receive additional passive income but cannot use the deposited cryptocurrencies. Liquid staking, on the other hand, exchanges tokens for staking investors, allowing investors to use these tokens for other trading activities. In simple terms, when staking a certain cryptocurrency, another token is available for use, thereby enhancing the token’s liquidity and giving investors more flexibility in their investment strategies.
According to the current market cap, notable AI tokens include:
1. NEAR
NEAR coin is the dedicated stablecoin of the NEAR blockchain, designed to support various operations on the platform. NEAR can be used to execute smart contracts on the NEAR chain, as well as for staking, trading, and other functions, with all these operations requiring NEAR coins to pay corresponding fees.
2. FET
Fetch.ai is an innovative platform dedicated to building a practical digital economy. Its core technology is a network of Autonomous Economic Agents (AEAs) that can automate various transactions and tasks using machine learning algorithms.
3. RENDER
Render Network is a decentralized platform designed for GPU rendering, aiming to reduce time and costs for 3D image creators. Whether it’s film production, game development, or virtual reality applications, all these fields can benefit from the Render Network.
AI CRYPTO TRADING TOOLS TYPE 2: CRYPTO INVESTMENT ANALYSIS
The second application of AI crypto trading tools is a faster and more accurate prediction of cryptocurrency price trends or providing more precise recommendations based on large-scale data analysis.
One of AI’s advantages is its ability to collect news, forum posts, and various information sources in the shortest time possible, or use machine learning to analyze past crypto market-related data and trends (such as historical supply and demand, market events, prices, etc.) to deduce the most likely subsequent price models or compile more comprehensive analysis reports.
These AI crypto trading tools, based on advanced machine learning (ML) algorithms, can help you improve the efficiency of trading decisions. Although AI-driven price prediction models are more popular in stock trading, they are also beginning to gain some attention in the cryptocurrency field.
Read More: TOP 5 Crypto Trading Platforms April 2024
AI CRYPTO TRADING TOOLS TYPE 3: AI CRYPTO TRADING BOTS
We have already introduced AI crypto trading bots in previous articles. Their basic logic is that AI bots use big data analysis of past trading information and make trading strategies in real-time at the most appropriate timing.
AI Crypto trading bots can be broadly classified into the following eight types based on their characteristics:
1. Arbitrage Bots: These bots take advantage of price differences for the same asset on different exchanges. They buy from exchanges with lower prices and sell on exchanges with higher prices, profiting from the price gap.
2. Market Making Bots: Market making bots place buy and sell orders on the order book to create liquidity. They profit from the spread between buy and sell prices.
3. Trend Following Bots: These bots follow market trends, aiming to ride the trend until it reverses. They use technical indicators like moving averages, MACD, and RSI to identify trends.
4. Scalping Bots: Scalping bots make multiple small trades throughout the day, profiting from small price movements. They aim to profit from the bid-ask spread.
5. Mean Reversion Bots: These bots operate on the assumption that prices will eventually revert to the mean. They buy when prices are below the mean and sell when they are above.
6. Algorithmic Bots: These bots use complex mathematical algorithms to analyze market data and make trading decisions. They can be highly customized and can implement various trading strategies.
7. Copy Trading Bots: Copy trading bots allow users to copy the trades of successful traders. Users can choose which traders to follow, and the bot will automatically execute the same trades on their behalf.
8. AI/ML Bots: Bots that use artificial intelligence and machine learning algorithms to analyze market data and make trading decisions. These bots can adapt to changing market conditions and learn from past trades.
Here are three currently popular AI crypto trading bots:
1. Dash 2 Trade
Whether experienced professional traders or novice investors, everyone can find the most profitable opportunities with Dash 2 Trade. Dash 2 Trade also issues an AI token: D2T.
The Dash 2 Trade platform conducts AI cryptocurrency trading through automatic trading APIs and other trading tools (such as allowing users to conduct theoretical tests under real-time market conditions without directly investing funds). Novice traders can also use the copy trading function to directly follow the strategies of profitable traders on the website.
Experienced traders can join communities composed of professional and experienced traders to share and discuss trading strategies. Dash 2 Trade also provides a series of analytical views and indicators, including analyzing on-chain transactions, tracking social media sentiment, and observing whale wallet activities to understand market trends.
(Source: Dash 2 Trade)
2. Learn2Trade
Learn2Trade is also a long-established and trusted cryptocurrency trading bot with over 70,000 users worldwide.
The Learn2Trade platform provides up to five real-time alerts daily through social media and daily technical analysis. According to official data, the success rate of alerts and tips is 79%.
Learn2Trade is divided into free and paid options. Paid VIP users, in addition to receiving daily trading alerts, can see the average entry, take profit, and stop loss prices. It also includes detailed risk-reward information and suggested trading amounts, allowing users to take action with clear information.
3. Cryptohopper
Cryptohopper is one of the most popular crypto trading platforms in the market, offering AI crypto trading bot and copy trading features, allowing both beginners and experts to operate quickly. The AI crypto trading bot also issues alerts based on market trends. Users can also provide various strategies to the AI for scoring and ranking, and the AI will analyze according to the user’s needs and select the best current market model.
CONCLUSION
Due to the lack of consistent and clear legal regulations and protections, compared to traditional financial products, cryptocurrencies still have a long way to go before gaining public trust. Not to mention the frequent appearance of unfavorable factors such as scams, fake news, and government regulations in the media, making industry players and investors in the crypto world sometimes walk on eggshells.
We believe that with the recent AI trend and more data-driven technological assistance, the development of increasingly mature AI crypto trading tools can help more people understand cryptocurrencies and consolidate investors’ confidence in cryptocurrencies through this technology.
Moreover, the development of artificial intelligence may bring a new revolution to the cryptocurrency field. Although there are still many problems to be solved at present, as related projects continue to grow, the use of artificial intelligence will inevitably increase in the future. We look forward to this new technology bringing more positive and active impacts to the entire industry.
FAQS
1. Why do we need AI crypto trading tools?
AI crypto trading tools enable readers to invest more intelligently and efficiently in the crypto market. Moreover AI crypto trading tools can help more people understand cryptos and consolidate investors’ confidence in cryptos through this technology.
2. What are the 3 main uses of AI crypto trading tools?
AI crypto trading tools can be used for:
1. AI tokens
2. Crypto investment analysis
3. AI crypto trading bots
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