More and more youngsters these days are confronted with investment options for cryptocurrencies. They seem to be easily carried away by the idea of making money quickly, ‘easy money’, without having any knowledge or experience about trading stocks, forex or crypto. As a result, websites like eToro, a trading platform for all kinds of currencies, play in on the fact that people lack a lot of knowledge with regards to investment activities. eToro for example already makes it possible for its customers to select from a list of ‘experienced’ traders and make the same investing actions as they do automatically.
Furthermore, the quick rise of Artificial Intelligence (AI) has made it possible for businesses to advance this into the creation of bots that make use of Artificial Intelligence. They are programmed in such a way that first they gather a large pile of data from multiple crypto, forex and stock tracking websites. This data is then analysed from which the rate of the stock or crypto can be estimated and predicted. After this has been done, the AI bot will make use of its data to compare for it to calculate when exactly the rate will rise or fall. It aims to notify the consumer to sell where the rate has peaked into a fall, and where the rate has hit its bottom and will rise again.
Businesses nowadays make great use of programming AI bots that do such sort of things. They basically make use of the customer in some way, though it is the choice of the consumer themselves. How trustworthy AI trading bots are is something from which time will probably tell. It does make it easy for the consumer to gain experience and see what predictions turn up to be accurate or not. I do however advice every beginning investor to experience investing activities themselves instead of calling in the help from a bot and give the faith of money in the hands of the AI…
References:
https://insidebitcoins.com/ai-trading
Cofnas, A. (2018). The Future of Forex Trading: Algorithms, Artificial Intelligence, and Social Forex Trading. In Planet Forex (pp. 91-96). Palgrave Macmillan, Cham.
