What are the limits of crypto-AI

Keeping track of things in a market that offers as many opportunities as the crypto market is really not easy. As an investor, you can certainly concentrate on individual positions and individual currencies, but the time factor, especially in the crypto market, is always a point that is difficult to comply with if you do not have a whole team around you. This means that you sometimes have to be very fast in the crypto market to be able to take profits or prevent losses. This can quickly become a problem, especially with larger investment amounts, as even Ethereum co-founder Vitalik Buterin recently announced on Twitter. The tech billionaire announced a few days ago via Twitter that thanks to the Ethereum crash a few weeks ago, he was “only” a millionaire, but he should not be the only one who has to accept serious losses.

This is where artificial intelligence comes in handy. These automated systems are now becoming more and more modern also for cryptocurrencies. But even artificial intelligence has its limits because an AI cannot take into account many factors that humans would be able to recognize. But why is that? This is not because an AI is not able to process information properly, but because it simply lacks that information and does not know how to process it. Computer systems, including artificial intelligence, work according to a logical principle. Even though artificial intelligences are now capable of doing impressive things, such as the AI ​​Dall-E2 image from the Open ai project. Dall-E2 is said to have developed its own language, which is used in the generated images. The AI ​​probably managed to do this without any human intervention, there was actually no reason or necessity for this.

Nevertheless, of course, recognizing complex causalities is a problem for an AI, since humanity does not respond logically. For example, when football star Ronaldo pushes a glass of cola aside during an interview, the cola stock suddenly crashes. On the one hand, there is an obvious short-term decline, no matter how sudden it is, and that it might just be a misunderstanding, so one should rather buy more than sell out, a human being, an AI who usually only sees the chart, can see analyzes and trading behavior on different platforms, this causality is lacking as she does not have access to it.

Of course, you can still make money with crypto algorithms. provider as bit code ai offer trading programs that can respond well and act quickly, but as a human being you must always be aware, because unfortunately it is not an ultimate weapon either. The market and the people who trade here do not have to follow any logic, and an AI is only able to process information that it receives. The recognition of causalities is the great strength of deep learning of an AI, but deriving causal relationships is usually easier for humans because we can process information differently and perhaps faster.

An artificial intelligence, no matter how good it may be in its respective field, will never reach the complexity of the human mind. Nevertheless, an AI can far surpass us in some areas, not only in terms of speed but also in terms of efficiency. But as long as such artificial intelligence is not yet able to access all relevant information, the decisions of an AI also carry some residual risk. So who act with an AI would like to be aware of how this system works.

A good AI should always be able to apply proven strategies to more complex problems. Human professional traders who earn large profits combined with a comprehensive overview of trading platforms and large accounts for the respective cryptocurrency should also be looked at. With this kind of information, a good AI should be able to achieve a good result. As a customer, you should always be able to choose the risk that such an AI trading bot can, must or will take.

Unfortunately, in practice, we have rarely encountered a trading bot that was able or willing to explain its functions and decisions to such an extent. Therefore, you need to have a little bit of confidence to be able to reach a reasonable trading goal.

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