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Currently, investors from retail and institutional are rushing to purchase the best AI Crypto coins on the market. So that since the turn of the year, the hype of AI Crypto has become one of the trendiest ones in the crypto space. Also, various tokens such as Fetch.ai (FET) and SingularityNet (AGIX) are getting up to a hundred percent.
Both ChatGPT and DALL-E 2 are the AI Tools that have come after enhancing globalized interest, which is quite an exhilarating, promising, and interesting future for the potential of artificial intelligence.
In this article, we will explore the topic of AI trading bots, and their types, features, benefits, and more., Let’s dive into the topic.,
AI trading bot is a specialized computer program that uses advanced technologies like artificial intelligence and machine learning algorithms to analyze financial markets and execute buy or sell orders on behalf of a trader.
Simply, an AI trading bot is an automated software that renders a broad range of tools and features to assist traders in buying and selling cryptocurrency, stocks, NFTs, etc.
AI trading bot relies on complex algorithms and mathematical models to analyze market data, identify patterns, and predict future price movements. It can automatically buy and sell orders on various financial instruments such as stocks, cryptocurrencies, or forex.
Unlike human traders, Artificial Intelligence trading bots can operate continuously, reacting to market changes even when the trader is not actively monitoring the markets. Also, it is important to note that the quality of algorithms only determines the efficiency of AI trading bots. The more the quality of the algorithms, the better the decisions are.
There are many types of AI trading bots. But we have listed the most three important types that are widely used by traders.
AI Crypto Trading Bots refer to specialized software created to streamline the buying and selling of cryptocurrencies across various exchanges. These bots utilize artificial intelligence and machine learning algorithms to analyze market information, recognize patterns, and execute trades based on predefined strategies.
AI NFT Trading Bots are specifically tailored for the Non-Fungible Token (NFT) market, where unique digital assets are traded. These bots harness artificial intelligence to examine metadata, historical sales data, and market trends, enabling them to make well-informed decisions regarding the buying and selling of NFTs.
AI Stock Trading Bots concentrate on conventional financial markets by automating the buying and selling of stocks and securities. These bots leverage artificial intelligence to scrutinize financial data, perform fundamental and technical analyses, and make investment decisions driven by data.
(i) According to the report from the US Securities and Exchange Commission, 78% of market trades are executed by “trading centers rely on automated systems and algorithms.”
(ii) Digital Journal predicts that the globalized market of AI trading bots is expected to grow at a notable CAGR of +23% during the forecasting period (2023 to 2030).
(iii) Dataprot reports that AI will contribute $15.7 trillion to the globalized economy by 2030.
AI crypto trading is a method of trading cryptocurrencies using various trading strategies and performing transactions with the help of trading bots and algorithms. The main advantage of using Artificial Intelligence in crypto trading is its potential to analyze a large amount of data in a short time.
With the help of AI, crypto traders can easily spot patterns and trends in the crypto market which most of them would overlook. Unlike traditional crypto trading, they can rely completely on AI crypto trading which operates 24/7. Even in the times of their absence, it takes advantage of every buy and sell opportunity.
AI models can help analyze charts, indicators, and historical price data to identify entry and exit points. Algorithms can also analyze social media, news, and other sources to make informed trading decisions.
In AI crypto trading, AI algorithms can make trades automatically based on predefined rules without the involvement of humans. It provides information on when to buy and sell cryptocurrencies to increase your returns.
However, it is crucial to consider the risks associated with AI crypto trading. Its success depends on various factors like strategy and market conditions. That's why it is important to continuously monitor and adapt your crypto trading strategies in response to changing market conditions.
AI Crypto Trading Bot is a computerized program that analyzes market data and executes trades on the user's behalf using artificial intelligence algorithms. The bot can be programmed to follow particular trading strategies, make decisions based on market conditions, and efficiently execute trades. This can save traders time and effort while potentially resulting in higher returns.
AI Crypto Trading Bots enable users to remain active in the market 24/7, allowing them to execute trades constantly. Due to the volatility of the crypto market, it can be challenging for humans to keep up with the ever-changing trends and make profitable transactions, or stop losses at the appropriate time.
Also, these AI Crypto Trading bots allow users to automate the process in manual mode. So based on the user's instruction, strategy, and adjusting the risk factors.
Now let’s see how these AI crypto trading bots work.
AI Crypto trading bots often work as follows:
The AI Crypto trading bot gathers real-time data in the crypto market, such as cryptocurrency price, volume, and depth of order book from multiple sources.
The AI Trading bot uses algorithms to analyze the market data and determine patterns, trends, and trading signals.
The AI Crypto trading bots decide whether to buy, sell, or hold their assets based on the analysis and predefined trading strategy.
By sending orders directly to the exchange or via an API connection, the AI crypto trading bot performs trades on the user's behalf.
The AI Crypto Trading bot continuously scrutinizes the market and modifies its decisions and trades as necessary.
Here we are going to see how to integrate artificial Intelligence and machine learning to create an AI crypto trading bot.
Analyze your specifications and requirements for your project. Are you looking to enhance an existing crypto trading bot with AI integration? Alternatively, Are you considering using a crypto bot builder and integrating it with this bot? Finally, Are you planning to create a highly customized bot for AI crypto trading? The development strategies may differ based on the scope of the AI bot project.
Based on project requirements, choose the tech stack and IT infrastructure.
If you plan to provide a web application, encode the front end using JavaScript. You can use HTML, CSS, and Javascript for this. Instead, you can use familiarized open-source frameworks such as Angular and React.js.
Building a back-end web application using Node.js assists in coding scalable AI bot trading apps. Use Python or Julia for AI/ML software needs. Use AWS for hosting and cloud computing services.
A proficient team is required to create and set up your AI Crypto trading bot. Ensure to include the following experts:
A project manager who has enforced many crypto and blockchain projects utilizes multiple project management frameworks.
If you intend to create a highly customized AI bot crypto trading, you will need an AI Developer with knowledge of ML algorithms, NLP, and more.,
You have relied on whether you want to integrate AI Bot into your crypto online app, mobile app, or both.
An app tester to test bot capabilities to ensure the quality of your crypto bot solution.
You must decide what types of trades you want the AI trading bot to execute. Let's see some examples of AI trading bots, they are, Day Trading, Long-term investments, and more., Define your trade objectives, risk tolerance, market focus, and other factors. Choose the cryptocurrency trading algorithm that you want to utilize in your AI bot trading. Each algorithm operates in various market conditions and takes advantage of different opportunities. The following are a few examples:
Read More: Crypto Bot Trading Strategies
To create an AI Crypto trading bot, you must collect data from various applicable sources. It should include trade data, stock market info, data from the best crypto exchanges, and more.,
Scan, identify, and document the applicable data sources
Parse the data from the XML/JSON format you prefer
Integrate data from the right number of data sets and make a plan to remove the biases
After collecting the data sources, then perform technical analysis and explore the quality of the data. Let’s see the steps for analyzing and creating profiles of data
- Look for trends and check if there are any outliers in the input data sets.
- Check various exceptions that occur in this type of data create a list of missing elements and list out the incorrect data points
- Examine and find the errors in your AI/ML Systems.
You want the Machine learning algorithms in your AI Crypto Trading Bot to understand the input data better. The algorithms should be able to see patterns so you need to execute “Feature Engineering”. Analyze the data sources and categorize them into multiple values. After that, modify the raw data into “Features” for the ML algorithm to understand the relationships of data better. You may need to go through the data preparation process again as the AI and ML Crypto bot trading platform develops. Documenting this information will assist you for futuristic purposes.
Investors dealing in cryptocurrencies need security. So, you are required to prioritize these elements to create the best AI crypto trading bot. Take the following steps:
- Use multi-factor authentication, encryption, and digital signature for high-security purposes.
- Incorporate key features like a secure gateway to protect APIs.
- It’s crucial to reject any grip on cyber-attackers such as data poisoning and impact AI/ML systems that you need to inhibit them.
Now you are at the end of the business project. Develop your AI Crypto trading bot based on your business necessities. Review your development code thoroughly as regularly as possible.
You were using Backtesting strategies to assess the execution of the AI trading bot using historical market data. With the help of trading rules and strategy, you would apply this to past market conditions and evaluate how the trading bot would have performed.
Also, measure various performance metrics, such as risk-adjusted returns, profitability, maximum drawdown, and more., Enhance the performance of AI crypto bot trading by adjusting model parameters, trading rules, and other crypto trading indicators, etc.,
Here is the Pro Tip for you! You can test this AI crypto bot with the most familiarized crypto trading platforms. This will assist you in providing discriminated features.
(i) AI trading bot executes with Binance
(ii) Crypto AI bot runs on KuCoin
(iii) Shrimpy - A well-known crypto AI bot trading platform
The AI crypto trading bots link to your crypto exchange account such as Binance, Kraken, and more., Using Artificial Intelligence, it collects the required information for it to determine whether to make a trade.
AI trading bot offers numerous benefits that can assist you to trade 24/7, capability to n number of calculations to make the trade at the best time in an emotionless manner. This can execute your trades much faster than a human.
Let’s see what benefits are included.,
The benefits of AI trading bots are emotionless over humans. There is no worry, greed, or any other emotions to get in the way of making decisions to buy and sell. All trades are done with arithmetical analysis.
AI trading bots can execute trades in milliseconds after making a decision. There is no way a human can make speedier trades. Moreover, with 24/7 constant trade, executes trades day and night.
AI trading bots can make an ample amount of trades per day, much more than a human counterpart. While many of these trades may only create small profits, given the trading volume, the bots can complete these profits and add up rapidly.
The main benefit of AI trading bots over humans is executing their trades with absolute consistency. They can follow specific strategies and make trades consistently based on market data. Because of this, it reduces the risk of making decisions emotionally or irrationally.
In the AI trading bot, there are 5 main key features available. They are.,
The dashboard of the AI trading bots contains various features that enable users to find icons and tabs easily and navigate to various sections of the interface. You can initiate in minutes by following the simple-on-screen instructions.
The success rate of this AI trading bot is too high. It indicates that these AI bots predict 80% of trades accurately. This success rate of AI bots integrated with its sub-second order execution ability, means it can make profitable trades in a short period in a volatile crypto market.
These artificial Intelligence trading bots offer a wide range of features that execute a range from beginner tools to pro mechanisms. The automated mode comes pre-coded with everything needed to make lucrative trades, but proficient investors can add more functionality to perform complex techniques.
The time duration of registering for an account is more than 2 to 5 minutes, once you successfully register, you can get the right to execute live trades.
AI Trading bots have a user-friendly feature that is responsible for displaying the trading interface and other relevant information to the users making it easy to navigate the platform.
Here is the list of the best AI trading bots for crypto trading:
1. Stoic.ai
2. Quantum AI
3. Bit Index AI
4. Cryptohopper
5. HaasOnline
Stoic AI is a fully AI crypto trading bot. The bot has been in development for seven years and outperforms the market in terms of earnings. Stoic is also one of the simplest AI Crypto bots to use - simply connect it to one of the exchanges they offer, sit back, and watch the revenue stream.
Stoic.ai is fully automated with three trading strategies to choose from based on your crypto investment risk profile. The more risk you are willing to take, the higher the potential for a huge profit.
The trading techniques of the AI bots are called "Market Neutral", which indicates it doesn't matter the state of the market, whether the market is bear or bull, these AI bots are designed to make lucrative profits in any market.
Quantum AI is an AI-powered automated trading platform that assists users in trading crypto CFDs. It’s quite different from other competitors, as it can also trade securities like currency pairs and stocks. The benefit of Quantum AI is that it is backed by a legitimate team of experts. It also employs security measures like SSL encryption and well-known anti-phishing and antivirus technology to safeguard your data.
Bit Index AI is a powerful AI-based platform that renders advanced tools and features to assist traders in buying and selling cryptocurrencies. It can determine trends and predict price movements in the crypto market. This AI bot is a legalized trading platform that is regulated by the CySEC. This provides users with confidence that their investments are highly safe and secure.
Cryptohopper is one of the famous crypto trading bots that leverages the power of artificial intelligence to assist traders of all levels to maximize their revenue while minimizing the risks. Based on external signals, it accomplishes this by providing algorithmically designed trading tactics that allow it to execute trades automatically.
Haasonline is one of the well-established automated trading platforms. This AI platform permits you to trade more than 16 bots at the same time. With the help of 50 technical indicators and additional acts, this Hassonline AI bot can easily resolve complex strategies. These AI trading bots also can perform backtesting.
AI Crypto trading bots are an extremely useful and typically profitable tool for traders and investors to maximize their crypto trading to make lucrative profits. These AI bots offer notable benefits for investors seeking a competitive edge in the marketplace. AI Crypto trading bots are expected to become an increasingly important tool for traders as technology evolves.
Maticz is a leading AI crypto trading bot development company that offers White-label AI crypto trading bot software with futuristic features and functionalities. Our AI crypto trading bot is customizable based on your bot strategies.
We provide versatile AI crypto trading bot development services with the industry’s best AI crypto trading bot developers at an affordable cost. We primarily focus on 100% client satisfaction, So that our clients' businesses can generate more profit by attracting more crypto traders.
Our AI crypto trading bot developers are highly proficient in the field of blockchain and AI so we can offer you first-rate AI trading bot solutions. Our AI Crypto trading bot developers provide white-label AI-powered trading bots with cutting-edge features, security plugins, and functionalities. Want to implement your crypto exchange with our exclusive AI Crypto trading bot development? Connect with us to attain your business goals.
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