AI Crypto Trading: How AI Agents Will Transform Crypto Trading

AI-powered crypto trading is here. Today, a 15-year-old girl sitting in her room in Ohio has the tools to perform as well as a professional trader thanks to artificial intelligence.

AI is giving normies the power to compete with professional traders. AI has taken productivity by storm in the retail market. This is the case for everyone, even teenagers who are adopting AI faster than adults. They will be able to harness these AI tools, understand them, and wield them better than the rest of us. This will create more competition for professional traders and empower young people to take control of their financial futures. AI crypto trading uses complex algorithmic predictions, sentiment analysis, and machine learning to analyze big data to complete trades at the best times, and at the best prices. Traders using AI can mitigate risks, get higher returns, forecast markets with higher accuracy, and have agents do the trading for them.

Human traders will still represent the bulk of the trading equation. In 2023, the global AI trading market was worth $18.2 billion, and by 2033, it will more than triple. The trading market will be divided into two groups: those who don’t use AI, and those who use all the AI tools available to them. Logically, the latter group will outperform the first one. It would be like comparing a person using a piece of paper to a person using a computer to finish trading tasks. The difference is too steep. Only traders who embrace next-gen AI tools will be able to keep up with the market demands and make profits.

AI Agents have the potential to change the entire crypto trading landscape. Think of AI Agents as digital workers. They are autonomous and help human traders when it comes to completing complex, multi-step tasks. AI Agents will become a constant presence in crypto trading because they can make decisions and complete actions based on their data processing, learning, and programming — without any human intervention.

Here’s how they will transform the crypto trading landscape, and help 15-year-olds trade better than a pro.

The Benefits Of AI Trading

AI trading has many benefits. Here are some of the best:

Less Research Time

AI can compile current happenings, research data, and automate data-driven decisions to allow traders to waste less time on research, and more time doing the actual trading. Traders who use algorithmic trading increase their productivity by 10% based on a recent survey.

Better Accuracy

AI inherently comes without bias. Human traders have emotions (even though they say they don’t have them) and often make decisions in line based on unconscious triggers. Algorithms use historical data to make informed decisions, so the risk of human error is lessened, while the accuracy is increased.

Predicting Patterns

Thanks to natural language processing (NLP) and sentiment analysis, an AI trading system can understand information from social media and news outlets. This helps traders notice market swings instantly, and predict investor behavior much faster compared to reading and researching themselves.

Better Risk Management

Traders and investors can compile insights in AI tools to assess their strategies and make changes instantly. There’s no need to test out their strategies immediately in the real world when they have the option to run it back and see how their virtual portfolio will perform in similar times to the past. Plus, investors who rely on AI tools maintain consistent and more logical trades — without emotional decisions.

Lower Costs

Traders can miss a 10X coin in a minute. AI trading technology can replicate boring and repetitive tasks and save time — thus saving money. There’s the initial setup that can take a while, but over time, traders and investors spend way less using AI tools (while making more profits). And they get the added benefit of monitoring the crypto market 24/7.

Leveling the Playing Ground

Currently, there is a small community of traders who have access to the best tools and the most recent data. New projects like Armor aim to democratize access to the full power of AI and give it to everyone. When the entire world can play the same game, we’ll see who are the true naturals and outliers and have the markets shaped by retail traders.

AI Trading Risks

AI has many upsides and benefits. But it still has a few downsides. Traders need to be aware of the risks before they start using trading tools.

Reliant On Historical Data

History either repeats itself, or it rhymes. Using historical data to predict markets has been successful and accurate, but it isn’t 100% correct and foolproof. The crypto markets are volatile, and some events can influence them. Some examples are the Russia-Ukraine conflict, approving ETFs, hacks, etc. Investors and traders must consider the volatility of current events when because historical data by itself can never paint the current picture.

Less Transparency

AI technology can handle millions of transactions in a second. The human brain can’t comprehend the sheer volume and numbers that go into the calculations. Sometimes, traders won’t know why or how their AI made a trade.

Large Scale Errors

Speed often meets with errors. Traders using AI want the fastest tool available to be better than their competitors. A single bug or a line of inaccurate code can multiply an error of a dollar over a hundred thousand trades in the scope of a minute. When automating the trading process, investors have to be sure the software they’re using is error-free and set limits on their trades or volume.

Cybersecurity

Cybercriminals will target crypto AI tools for a number of reasons: financial destabilization, market confusion, and theft. Traders and investors must take proper security precautions before using AI trading tools.

How Does Armor Wallet Come Into The Mix?

Armor will be the end-all-be-all solution for every crypto trader. You’ll have access to AI Agents who will do the trading for you based on simple commands — right in your wallet where you can look at all your crypto holdings. The simple prompt interface will make sense of everything you tell it, and when it needs more information, it will ask you. Armor aims to become a crypto trader’s best friend, making their life easier, and giving them access to the way AI is supposed to be used.

No one would like to be trading against someone using Armor. It just wouldn’t be fair.

About Armor Wallet

Armor Wallet is an AI-powered web3 wallet that helps take the emotion out of crypto investing. A non-custodial wallet using AI agents to trade across multiple blockchains and execute complex trades fast and easy. A new generation web3 tool powered by AI capable of learning from users and processes enormous amounts of data from market to insights and provide tailored recommendations and insights for investing.