Using AI to improve your crypto investing
We’ve already covered some of the common pitfalls awaiting both new and experienced investors. Now, time for some good news. New AI solutions are around the corner and have the potential to considerably improve your investing decision-making process. According to Dr. John Kelly III, IBM Senior Vice President for Research and Solutions: “The success of cognitive computing will not be measured by Turing tests or a computer’s ability to mimic humans. It will be measured in more practical ways, like return on investment.”
“There’s an immense opportunity to use AI in all kinds of decision making,” — adds Rao of PwC. Here are some ways in which AI can improve your decision-making when managing your cryptocurrency portfolio.
AI frees up your time from time-consuming research
AI has already been used with great success to deliver better results for merchandising and commerce professionals. IBM Watson Commerce Insights improves business metrics in a number of ways: AI can handle issues such as researching customer issues or performing pricing analysis, helping professionals focus on strategic business decisions. Similarly, you could choose to rely on IBM Watson for fetching relevant data and analysis, rather than getting sucked into blogs and forums for hours only to get an overview of a particular issues.
AI can offer intelligent analysis derived from huge volumes of data
IBM’s Watson has already proven its ability to advance outcomes in some critical areas. For instance, IBM’s Watson for Oncology cognitive computing system is being used to accelerate personalized care for patients with cancer. Using natural language processing to make sense of written language, and probabilistic algorithms, Watson is able to read and understand millions of pages of text to focus on information relevant to clinicians’ queries and offer multiple possibilities that can be used in making treatment decisions.
In the crypto jungle, you could use Daneel Assistant to scour the web for mentions of a chosen cryptocurrency and extract insights from a huge number of data points.
When a company or an institution gathers data sets internally, they can generally expect their data sets to be accurate. They have the full control over data sources and data harnessing processes. However, when it comes to making sense of market sentiments, our data is scattered across countless news sites, social networks, and other online sources. Very often, the origin, accuracy and reliability of the data cannot be easily determined. This is where AI comes in. AI is able to make data reliable by cross-referencing a huge amount of sources and spotting and excluding inconsistencies.
When analyzing cryptocurrency market and determining “a confidence score” for a particular currency, AI will sift through fact, opinions, exclude the fake news and offer reliable analysis based on millions of data points.
Using AI to predict market movements and behavior
AI modeling and simulation techniques are already being used in marketing, enabling reliable insight into buyer personas. These techniques are used to predict consumer behavior. An artificial intelligence system — “Decision Support System” was developed to to assist in decision-making through real-time and up-to-date data gathering, trend analysis and forecasting.
In the near future, we can expect AI-driven forecasting tools being developed especially for cryptocurrency market. AI can be particularly helpful thanks to its ability to deliver non intuitive predictions — spotting patterns that may not be readily apparent to human analysis.
Our decision-making process will always remain imperfect, because… humans aren’t perfect! As pointed out by Consumer Psychologist & Persuasion Analyst, Patrick Oberstadt, “Our choices are fuelled by irrationality, heuristics, and emotions.” Our “human element” helps us factor the common psychological biases into our decision making process. Moreover, AI isn’t perfect either (for instance, unlike humans, AI can’t multitask). Consequently, the key, or “the decision making sweet spot” is combining the power of your investing finesse with the additional insight derived by AI.
Daneel is bringing the power of AI into the crypto jungle. Tap into the powder of IBM Watson to access and evaluate reliable information, access and manage your portfolio effortlessly, and even further educate yourself as an investor. If you like the prospect of taking advantage of one of the most advanced supercomputers to improve your investment performance, visit daneel.io for more information.