Unveiling Crypto Trading's Future - The Rise Of AI

Why is AI the future of trading in India?
Why is AI the future of trading in India?

Takeaway Points:

  • Institutions highly value AI's potential in transforming crypto trading, but they remain hesitant about investing in crypto AI projects.
  • While crypto-native chatbots are on the rise, institutional investors still prefer AI over them in their current form.
  • Affiliates believe that centralized players, especially CEXes, have an advantage in developing practical crypto-native AI tools due to superior resource planning, potentially leading to revolutionary AI products in the crypto industry.

Embark on a groundbreaking journey into the realm of AI and crypto. In this community-driven research, we delve deep to unravel the profound impact of AI on crypto traders. Discover how cutting-edge technology reshapes the game in the world of cryptocurrencies.

This blog covers 3 main questions:

  1. What's the current use of AI in the crypto market and how do traders feel about it?
  2. What are the affiliates’ opinions on AI's role in crypto trading?
  3. What's the future of AI in crypto, and what opportunities and challenges lie ahead?

Unearth insider insights of affiliates about the game-changing potential of AI in the world of crypto trading and beyond. Dive deeper into the conversation as we reveal what our community truly thinks about investing in this groundbreaking technology.

Finding #1

Nine out of ten affiliates envision AI's integration with crypto in the future, even though the majority of them haven't invested in AI projects yet.

It is no surprise that institutions think highly of AI’s power in transforming crypto trading, however, it is interesting that the majority of them are hesitant about crypto’s AI projects.

Finding #2

Affiliates who believe in AI's integration with crypto prefer ChatGPT over crypto-native counterparts due to its simplicity and accessibility.

Crypto-native chatbots are blossoming. However, in its current form, those chatbots are still less preferred by institutional investors than ChatGPT.

Finding #3

More than 15% additional affiliates believe that centralized players, including CEXes, are more likely to integrate AI with crypto trading compared to decentralized players.

CEXes have significant opportunities to integrate ChatGPT into user-friendly, simple, and crypto-native AI products.

Due to demanding requirements on hardware and software, affiliates believe centralized players stand a higher chance of developing good crypto-native AI tools. This is likely due to superior resource planning by CEXes (Centralized Exchanges). Interviews with affiliates indicated that CEXes are particularly likely to launch revolutionary crypto AI products compared to other industry players.

Finding #4

Among affiliates, 8 out of 10 express a primary desire for AI to aid in generating trading ideas, given concerns about privacy and security.

Affliliates foresee privacy and security as the major controversies in AI's integration with crypto.

A majority of the affiliates primarily use AI for assistance in generating investment ideas. Coupled with the findings that there are many concerns about the privacy and security of AI-empowered crypto trading tools, fully automated AI trading can not be said to be fully reliable at its current stage.

Finding #5

Affiliates believe in AI's role in crypto trading, but they think institutional investors may benefit more than retails investors. The main risk from AI's integration with crypto is the dominance of large institutions.

Nevertheless,  9 out of 10 affiliates remain firm in their belief in AI's potential to revolutionize crypto trading.

While AI trading tools are generally accessible to the broader public, it is interesting to note that affiliates think institutions are the primary beneficiaries of the AI revolution. From the interviews with affiliates, they believe that AI trading tools could become very complex, leading to an advantage for institutions relative to retail traders.

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What does the research cover?
The research delves deep into AI and its impact on crypto traders. It explores the current use of AI in the crypto market and how traders feel about it, the opinions of the affiliates regarding AI's role in crypto trading, and the future of AI in crypto with opportunities and challenges ahead.

What is the surprising finding about institutions and AI in crypto?
The research shows that institutions highly value AI's power in transforming crypto trading. However, it's interesting that the majority of them are still hesitant about investing in crypto AI projects.

Who believes centralized players have an advantage in developing AI tools?
Affiliates in the research believe that centralized players, particularly CEXes (Centralized Exchanges), stand a higher chance of developing good crypto-native AI tools due to their superior resource planning in hardware and software requirements.