Artificial Intelligence In CryptoTrading

Artificial Intelligence and Cryptocurrencies are the things which are going to be huge in 2018. These two things are changing the way people interact and are growing dozens of industries. People interests are growing day by day in cryptocurrencies and people are excited to learn about the A.I. and are investing in Bitcoins, Ethereum etc. The Market Cap value is increasing its share and we saw bitcoin going as high as close to $20,000 and dropping back to $8,00(as of Feb5,2018).

A.I. is shaping the world with newer possibilities which are being used in every field nowadays and is going to be huge in 2018. Artificial Intelligence basically means a software which when given initially programmed continues to improve its performance based on the experience of the environment which is set to learn. It keeps on learning new things and presents you with the suggestions over time when you interact with it more and more. It is overpowering the human with the passing time and is spreading speedily.

Hedge Funds, banks, and major international corporations are using A.I based trading of forex and stock markets. Harnessing deep learning which predicts and forecasts the long-term outcomes of the financial markets. These models track the changes in the market and get better over time involving A.I.

A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques.( Wikipedia)

Therefore, Hedge funds are using A.I system in trading, A.I. is set to replace 90,000 asset management jobs and 45 thousand sales and trading jobs by 2025. Famous hedge funds that are already employing AI in their trading are Renaissance Technologies, Two Sigma, and Bridgewater Associates.

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But currently, there are limitations as cryptocurrencies like bitcoin are only a few years old, unlike the stock markets which has 100 years of study. Still, we are in dark with the cryptocurrencies and it can't replace the current system, for now, is a new type of investment. People don't have much knowledge about them and are not in such state of mind to invest. Normal people don't invest because of the risks in the investment but the era of the Cryptocurrencies and artificial intelligence is yet to start and it will change the world and the people entirely. These both things are driving more engineers to study this area and offer products that make trading easier or more profitable.

There are processing limits- more the complex machine learning algorithm, more the power and hardware we need to run. For a high profile company, it is possible to get A.I. into trading but for a machine learning engineer, it's not possible. Also, the company needs to have the public trust for a truly cryptocurrency trading program. The company needs to work like the algorithm works better and fast than an average human being.

For now, it is not possible for A.I. to monitor the growth and trends of the cryptocurrencies better than the human beings but it's possible and needs enough time and efforts to develop that and would certainly happen in the future time. A.I. will predict the outcomes of the cryptocurrencies in the future and for that, we just need to wait for the future.

Until then, unpredictably of cryptocurrency will remain as it is now but will be certainly seeing growth in the coming years. Happy Investing, Happy Trading!!!