Getting the most out of crypto with artificial intelligence (AI) is possible
I've always considered myself a technology and finance enthusiast, but recently, artificial intelligence has changed the way I view the crypto and blockchain world (and the world in general; the last two years have opened up a whole new world of possibilities).
With my experience as CEO of Nuvosphere, I've been able to experience the revolution that AI is causing, not only in trading but in all stages of project development (actually, in all areas of society; these last two years have opened up a whole new world of possibilities with AI).
I'm excited to discover and share with my team all the new tools and trends that come with AI. Here, I want to share with you, as a user and another crypto sister, the areas and tools that caught my attention due to their potential for users and projects.
AI in Algorithmic Trading and Market Analysis
The speed and amount of information involved in crypto trading have always been impressive to me (beyond the volatility and speed of the market). It's challenging, frustrating, and even terrifying, but AI has changed everything. With machine learning algorithms, we can process data incredibly quickly, analyze market trades, and even predict trading trends more accurately than any trading indicator could tell us. Some of the tools I've been amazed by:
CryptoHopper: a trading bot that processes an incredible amount of data and makes decisions automatically (always with real-time monitoring and for strategy testing exercises). Watching it work is amazing: it's impossible to consider so many factors when making decisions.
TradeSanta: offers AI-based algorithmic strategies and portfolio optimization. I love how it democratizes the use of advanced strategies so that any user with average experience can take their strategies to the next level.
DeepTradeBot: uses neural networks to analyze the market and make decisions automatically. I was amazed by the algorithm's accuracy, although like all the tools I'm mentioning, they have a lot of room for improvement, and we don't know where they'll end up in a couple of years.
Spoiler alert: At NuDEX, we're planning to integrate an AI model so traders can automatically discover opportunities and have simplified access to advanced tools without losing control over their assets. It's a dream come true, and I'm excited to start sharing it when the time comes.
Artificial Intelligence for Security and Fraud Prevention
If I had to choose one AI tool to dedicate all my work and time to, I'd be concerned about blockchain security.
Fraud, phishing, and smart contract vulnerabilities are always around the corner.
In fact, some of the solutions that surprised me are:
Elliptic: AI to identify suspicious activity in on-chain transactions. I've never seen an algorithm detect anomalies before they cause problems in a protocol. I see it as an advanced test where AI will try to hack the data and warn you where the vulnerabilities are.
Chainalysis: Machine learning applied to combat fraud in cryptoassets. I think it could become a key foundation for decentralized regulation in the future.
OpenZeppelin Defender: AI detects problems in smart contracts. They are playing a crucial role in reducing the incidence of fatal errors in smart contracts for startup projects.
At NuDEX, we are examining AI-based tools for security monitors. Who isn't obsessed with the idea of a 100% secure crypto-tokenized environment?
Generating Smart Contracts with AI
Fortunately, AI is also transforming smart contract startups. I always say it's both an art and a science. However, it's also complicated and buggy. OpenAI Codex and ChatGPT are AIs that facilitate smart contract design and Solidity generation. I've tried this, but what surprised me most is how natural it feels.
ChainGPT is AI specifically for blockchain, helping with code development and security analysis. It's like having an expert programmer 24/7. AI Smart Contract Auditor: AI to audit code and find issues before deploying a smart contract.
Essential for any DeFi Dapp.
My reflection, beyond naming tools, is to focus on how the barrier to entry for blockchain entrepreneurs and users has been drastically reduced.
You no longer need to be a highly skilled programmer: with AI, you can create smart contracts yourself efficiently and securely (I haven't seen the perfect tool yet; there are always bugs and things to improve, as I said before).
I've always firmly believed in the importance of design and user experience for blockchain adoption, and I believe AI is helping us optimize all of these processes.
The future of AI in Crypto and Blockchain has just begun. The best advice I can give you is: test the tools, explore, don't be afraid to try new things. Try to take advantage of this prehistoric era of AI we're experiencing to become visionaries of the future. Everything you build today will be even bigger than you imagined in a few years.
Warm greetings
Caria Wei
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