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Think AI in Crypto Trading Is Overhyped? My Real Experience Will Surprise You
- AI in trading has become a buzzword, leading to skepticism about its real impact on wealth creation for crypto investors.
- AI trading promises to analyze vast amounts of data at speeds humans cannot match for making decisions based on historical price movements, real-time trends, and social sentiment to predict market movements more accurately.
- The author initially avoided AI believing it would strip away the human judgment and relied on intuition and research-based strategies. Furthermore, licenses, output costs, and the learning curve also deterred the author from AI.
- Early use of AI-based strategies resulted in losses, leading the author to realize that even AI requires time, tweaking, and the ability to learn from its mistakes.
- The author had an 'aha' moment when the AI system outperformed the author’s instincts and judgment in turbulent market conditions.
- AI systems reflect successes and failure. High volatility trades and data-driven decisions produced positive results. On the other hand, over-reliance on AI and algorithm adjustments can result in significant losses.
- The key to using AI in crypto trade is to combine AI predictions and human judgment, regularly update the algorithm to match the market trend, and that AI requires time, patience, and careful monitoring.
- AI technology is evolving to include more sophisticated algorithms and real-time analytics that also factor in external variables such as news and geopolitical shifts.
- Conclusively, AI is not a 'get-rich-quick' solution, and it has its limitations, but it holds immense potential when used thoughtfully to analyze data more efficiently and spot advantageous patterns.
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