Bitget's Gracy Chen repeats that AI-driven trading strategies are exceeding expectations over traditional methods.

Within the realm of cryptocurrency trading, the incorporation of artificial intelligence is indeed transformative. It bears significance not just in the operations of exchanges, but also in the performance of trades. AI assists in automating trading protocols, analyzing extensive data sets, forecasting market trends, and making informed decisions derived from thorough analysis.

Nonetheless, the technology is not without its limitations and ethical issues that must be acknowledged.

Metaverse Post interviewed Gracy Chen She serves as the Managing Director at a leading cryptocurrency trading platform, Bitget, to discuss both the progress AI has made and the hurdles it faces in the crypto sector.

Bitget Bitget has been actively integrating AI into its operations to better user experiences and overall efficiency. A key area of focus is AI-enhanced crypto trading, with the platform developing solutions aimed at simplifying the trading journey and boosting profitability for its users.

"We’ve created a tailored version of ChatGPT specifically for crypto that provides real-time market insights. By leveraging generative AI, which can analyze data much more quickly than humans ever could, we are able to deliver actionable trading insights in a far more efficient way,\" stated Chen.

AI has notably streamlined the translation processes in Bitget's multi-lingual service offerings, making it more effective and responsive. Additionally, their customer support utilizes AI for quicker responses to inquiries, delivering personalized information and trading metrics.

Bitget’s Innovation Zone has recently broadened its scope to incorporate AI-related tokens such as AGIX, IMGNAI, and ALI, and utilizes AI for thorough asset evaluations. The exchange has also rolled out Martingale AI and CTA strategies that cater to various trading approaches and risk tolerances.

AI grid trading strategies enable traders to buy and sell at designated intervals and price bands. The AI system crafts tailored strategies based on parameters set by the user, like chosen trading pairs and investment sizes.

Understanding the Restrictions of AI in Cryptocurrency

One of the primary drawbacks is that AI models mostly rely on historical data for training. However, past data does not always predict future market behavior, especially in the unpredictable environment of cryptocurrencies.

While AI works to remove emotional biases from trading, it isn’t entirely infallible. Sometimes, algorithms miss out on human instincts or qualitative insights, such as market sentiment or regulatory changes, which can be pivotal in making trading choices.

"Even as we advance in making AI trading more accessible, there’s still a knowledge gap for individuals who may not fully grasp how to utilize these platforms effectively. It’s essential that traders gain an understanding of the strategic framework the AI is executing for them,\" Chen emphasized.

Chen said.

Chen argued that while AI is an immensely powerful asset, it should be complemented with a solid grasp of both the technology itself and the nuances of the crypto market.

She pinpointed data handling as a significant ethical consideration. AI models depend on vast amounts of data for conducting analysis and guiding decisions. It's crucial to ensure that the collection, storage, and use of this data conform to privacy laws and ethical standards, protecting the interests of all users.

"Yet, we must be careful to recognize that despite the immense opportunities AI presents, it also comes with challenges and risks that need to be adeptly managed. By putting strong ethical regulations and governance systems in place, the industry can address these issues effectively,\" she remarked. \"This rising trend of AI-driven initiatives might well push forward advancements in regulatory frameworks, enhancing safety protocols and ensuring transparency within the sector.\"

The Benefits and Influence of AI in Crypto Trading

AI-driven trading boasts distinct advantages when compared to traditional human-operated or standard algorithmic trading methods. Chen highlighted speed as a notable advantage, as AI can analyze and process extensive amounts of data much faster than human traders.

"The swift detection of patterns by AI empowers traders to cultivate more effective strategies and reduces the time spent on manual market monitoring. Furthermore, AI methodologies, such as grid trading and Martingale AI, can execute trades based on predetermined conditions, liberating traders from the need for constant market observation and time-sensitive decision-making,\" Chen elaborated.

As for emotional neutrality, AI tends to outperform human traders, she explained, as people often struggle with emotions that can negatively impact their trading choices. AI significantly minimizes this emotional influence, enabling trading to be more disciplined and guided by logic and historical data.

Incorporating artificial intelligence could greatly enhance trading strategies, especially within traditional financial markets. Chen pointed out that Robo-Advisors are already managing assets expected to surge to over 14% CAGR up to $2.02 trillion by 2027. The global algorithmic trading sector is projected to climb to $3.56 billion by 2030.

These statistics indicate that AI could soon become a foundational element in financial markets, potentially changing how investors look at asset distribution, risk management, and long-term investment strategies.

Responding to Rapid Market Changes with AI Trading

AI-focused trading systems are crafted to efficiently adjust to swift market fluctuations. By harnessing both real-time data and historical insights, these algorithms can alter trading approaches almost instantly. For example, Bitget’s AI Grid Trading feature places orders to buy and sell at set intervals and price levels, all while utilizing immediate asset fluctuations to spot rising trends.

Features such as Martingale AI increase investments following market dips, relying on historical data to guide decision-making even when market volatility is high.

These AI tools These systems can automate trading while swiftly adapting to market dynamics, helping to reduce losses and enhance gains. The advanced speed and computational ability of AI equip it to navigate the notoriously unstable crypto markets much more effectively than traditional traders, thereby offering users a strategic edge.

The Future of Financial Management Lies with AI

With the swift expansion of assets managed by AI across various financial sectors, it's evident that automated, intelligent trading is the way forward. Several projects illustrate this trajectory, such as Worldcoin ,  Pragma , Zama.ai, and  Giza . 

"Bitget is contemplating the integration of AI across all departments. We are dedicated to continuously refining and rolling out innovative AI-based trading solutions, building upon our existing Martingale AI, CTA, and grid trading frameworks,\" Chen shared with Metaverse Post.

Chen sees artificial intelligence as a key player in making digital asset trading not only more efficient but also accessible and secure for all participants.

Read more:

• A Basic Guide to Preserving Wealth with Crypto: Understanding Stablecoins and Bitcoin (2023)
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