Technology is evolving so rapidly that we barely have time to keep up with it. Over the last few years, numerous technological solutions have been making a tremendous impact on investments in cryptocurrencies and the way it is being done. As AI is already drastically transforming numerous industries, there’s no surprise that it will bring some big improvements to the crypto industry as well.
What’s the Fuss About
As AI is continuously learning from human behavior, how will all of this potential be used in the crypto industry? When talking about the current status of this relatively new industry, it’s important to separate the reality from the craze. In 2017, those who were investing in cryptocurrency business are now probably among the successful ones in this game. At that time, only the minority of people knew what cryptocurrencies actually are and what benefits they can bring to those who decide to invest in it.
Two years later, we have several companies that exploited this opportunity and announced projects that had no chance of succeeding. With those who rushed into this new market without understanding it first and those who used it to earn fast money, the overall trust in the system has tremendously decreased.
Experts believe that AI will save the day. After all, blockchain technology has what it takes to make positive changes while clearly separating projects with high potential and those which will last for an extremely short amount of time. Of course, there’s still a lot of development and customization required for AI to enhance this entire industry.
Read More: What Blockchain Means for Brand Protection
AI in the Crypto Industry
In the traditional financial market, AI has already been established as an efficient technological solution that brings numerous benefits to startups, corporate companies, and financial institutions and organizations. It’s really easy to understand where AI can replace humans in this type of market, but what will it replace in the crypto world when the human factor is already low there from the beginning?
The answer lies in the enhancement of software which will be so carefully developed that it will eliminate all the unnecessary noise which usually clouds people’s judgment. Before AI, people would make decisions based on multiple rational and emotional factors as it’s impossible to exclude even one of these two. But, AI will help prevent people from acting emotionally which leads to bad decisions.
There are many areas where AI can actually be very beneficial when talking about automated trading. One of these areas is high-frequency trading, a type of trading that relies on the analysis of technical indicators in numerous exchanges to respond accordingly to these trades much faster than the rest of the market.
The Potential of Content Marketing
We mentioned above the enormous decrease in trust that is greatly noticed even today due to the general lack of crypto knowledge. And where there is no trust, there should be transparency to rebuild it back. These promising ideas quickly vanished and left a bitter taste for those who are still uncertain of whether cryptocurrency is just another passing trend or is it here to stay.
To educate and engage their audiences, these companies and organizations are heavily investing in content marketing as their key method to fill in the missing gaps and misinterpreted messages.
According to research conducting by Finder, 31% of Brits don’t want to buy cryptocurrencies because they consider it too high of a risk.
The major reason for that assumption, which is common for other countries as well, is the lack of knowledge. With quality content, the target audience for the crypto market can better understand what the process looks like, how to calculate risk, which cryptocurrencies to avoid, etc.
The public perception about something new and complex can’t be changed that easily, especially if it got off to a bad start. To remediate the damage, the entire crypto market will need to focus more on providing useful information to their target audience through engaging content.
Enhancing the Analytical Aspect
Those businesses that will invest in educating their audience about cryptocurrencies will undoubtedly stay ahead of their competition. However, without proper technological solutions, that well-informed audience will still be uninterested in the crypto market, only this time because of the insufficient number of benefits.
AI also has tremendous potential when it comes to monitoring. With AI, you can monitor the value of your stock and the entire market as well. This analytics will enormously help people make better-informed decisions as it uses the information it collects from their search patterns and data from the stocks. These two elements are combined to provide a firm insight into trade activities.
The crypto market will unquestionably benefit from AI in the future as some of these benefits can already be seen right now. As businesses are finding their ways to switch to cryptocurrencies or make alternative currency, the crypto market will continue to evolve. The only real question is which of today’s players in this game will recognize AI as their ticket to success.