The impact of artificial intelligence (AI) across sectors is believed to be deep and long term. Reports from Statista, a market research platform, stated that with the intervention of artificial intelligence in every sector, it is expected that AI can bring a change in the crypto market and trading system. It is expected that the financial sector is going to adopt AI on a large scale. The global AI market, valued at $142.3 billion as of 2023, continues to grow driven by the influx of investments it receives the report highlighted.
Interestingly, industry experts believe that AI off late has begun to play a critical role when it comes to the trading of cryptocurrencies. From using algorithms to analyse market data to predict future trends, AI has been aiding platforms to navigate around volatility. “Around 80% of trading is done by bots and trading algorithms. So about $36 billion is traded through bots which are working on artificial intelligence,” Kumar Gaurav, Founder, CEO, Cashaa, told FE Blockchain.
When it comes to the connection between trading and AI strategies, experts believe that technology has made investing more accessible, cheaper, and more efficient. In 2021, the trading rate amounted to about 3,905 trades per day, as forecasted by Statista.“Cryptocurrency is all about the Internet of Money. The use of ChatGPT as support chats can help you to check the worth of cryptocurrencies. Customer service is the underrepresented part of crypto and AI might transform it,” Rajagopal Menon, Vice President, WazirX, added further.
As per sources, the global online trading market will continue to grow by about 6.4% per year with an estimated rate of $13.3 billion by 2026. Also, as AI becomes more accessible to people with tools such as Grid Trading Bot, Kryll and Mizar, among others this will help in controlling the level of risks, to provide insights into trading scalability and predictive analytics, among others. “It is expected that interactive bots can help people make the right trading and investing decisions on trading platforms,” Alankar Saxena, co-founder, CTO, Mudrex, concluded.