Cryptocurrency Trading Tools and Signals: AI Is The Next Frontier

Everyone talks about the volatility of the cryptocurrency market, it’s both the pro and the con of crypto trading making it potentially highly profitable and incredibly difficult to manage.

There’s a ton of new tools out there, tools designed to mirror stock trading signals, trading tools that rely on quant analyst insights, tools for calculating, managing trades and portfolios. With the acceleration of technology growth, there are even new Ai trading tools in development, such as RoninAi coming later this summer, not to be confused with algorithmic trading or bots.

What makes Ai so great for crypto trading?

Ai machine learning technology is unique in how it works. I can tell it what I want it to do, like analyze and predict the crypto market like the top analysts (output), give it all the data there is (input), and it’ll learn how to do that, processing the data at unparalleled speeds, modifying its own algorithms th better provide the desired result. This is where it becomes a magical black box, providing far greater value than any other tool out there.

^ The above is a simplified look at how Ai neural networks configure numerous strategies based on data for optimal signals or output.

“We’ve been seeing specialized AI in every aspect of our lives, from medicine and transportation to how electricity is distributed, and it promises to create a vastly more productive and efficient economy.”– Former US President, Barack Obama

Combine this technology with the best strategies for minimizing risk and maximizing returns in crypto trading, rebalancing portfolios, and you’ve got an incredible tool on your hands.

Ai Based Crypto Trading Tools

There are a lot of upcoming tools in this category, many of which started as ICOs, but most don’t have a realistic time of launch. Creating a real Ai tool is easier said than done, but it is in fact coming soon, late this summer of 2018 in fact.

AxionV, an Ai based crypto hedgefund, started developing the tool RoninAi and announced that it would be launched this summer. Already having a trading Ai developed for institutional investors they were able to move quickly and create a completely new ai crypto trading tool for retail use, releasing updates on development regularly with no investment period required and a solid team of experienced professionals in place. That makes RoninAi one of the first Ai crypto trading tools to be available for use.

This is where a product like RoninAi comes in, which is the complete and well-rounded tool to capitalize on the multitude of advantages that AI can bring to cryptocurrency trading.– BTC Manager

For those that don’t yet know the significance of rebalancing cryptocurrency portfolio, here’s a simple breakdown.

Why You Should be Rebalancing Your Portfolio if you hold Cryptocurrency

With the trend of crypto investors “hodling” investments, rebalancing provides an opportunity to potentially boost these held earnings by taking advantage of rapid fluctuations in price. When a coin experiences strong gains, the rebalance will distribute those gains among the other assets. This means even if the value of the coin returns to the original price before the rise, rebalancing allows the portfolio to net a positive gain over this period.

With rebalancing, your investments are able to take advantage of the rapid changes in the market to compound gains meaning you are now realizing gains to reinvest into other coins.

Rebalancing beats HODL by a median of 64%. After taxes, this represents 92% of all possible cryptocurrency portfolios.

Rebalancing is an incredibly easy way to abide by the simple “buy low, sell high” rule. Let’s assume the total value of your holdings was stagnant. When one coin increased in value over the rebalance period, it would be sold off (sell high) and traded to the losers of that period (buy low). If the coins continue to cycle, rebalancing will continue to take advantage of these fluctuations to increase the value of your holdings.

It’s the best way to realize that goal of minimizing risk while maximizing gains. So imagine you’ve got a tool that automatically shows you the best way to rebalance your portfolio to capitalize on those opportunities, based on all available data, never stopping to eat or sleep and processing information at lightning speeds.

“There is no reason and no way that a human mind can keep up with an artificial intelligence machine.”– Gray Scott, Global Leader in Emerging Technology

As always, when buying and trading crypto, it is a volatile market. This article does not constitute investment advice and seeks only to update readers on the latest new technologies available.

Cryptocurrency Trading Tools and Signals: AI Is The Next Frontier was originally published in Hacker Noon on Medium, where people are continuing the conversation by highlighting and responding to this story.