Becoming a millionaire or billionaire is quite a normal phenomenon in the world of crypto. Trading is a skill per se, and there are innumerable cases where market participants have managed to inflate their profit bags. However, when things go haywire, it does not take much time for billions to get converted into millions.
Deficient technical and fundamental awareness, taking the market’s volatility for granted, and over-leveraging are a few blindspots for traders. A recent LendingTree survey brought to light that around 38% of people lose money while trading/investing in crypto. Contrarily, only 28% of them walked out with profits.
Nevertheless, the advent of Artificial Intelligence [AI] has proven to be fruitful for market participants. Crypto exchange ByBit, for instance, is integrating an AI tool into its trading platform. Its ChatGPT-based integration will help in automating market data analysis. Called ToolsGPT, the AI chatbot will help users with technical analysis, back-tested price data, and other essential metrics, to assist both novice and experienced traders.
In fact, even Crypto.com unveiled its first-ever AI-powered initiative, Amy, recently. The tool will help users familiarize themselves and learn about the crypto industry. Using “near real-time information” about specific tokens and projects, Amy will serve as a “crypto expert resource” for the average user. Thus, if users make the right use of such tools and resources, AI could help market participants improve their trading game by assisting them in making research-based decisions. In effect, this could potentially help in capping their losses too.
Also Read: Crypto Exchange ByBit Integrates ChatGPT to Assist Traders
Lightning Labs unveils new tools
Taking the AI and crypto bond another step further, Bitcoin Lightning Network developer, Lightning Labs, recently announced the launch of a new set of products that will help artificial intelligence send and receive Bitcoin on the network’s L2 solution. The toolkit will help enable AI applications like ChatGPT to interact with the Bitcoin network to send, receive, and hold the largest crypto. The launch intends to make payments faster, cheaper, and easier for AI developers. In fact, with the help of the new toolkit, they will be able to steer away from traditional payment rails. Lightning Labs’ official blog post highlighted,
“Leveraging the newly released OpenAI GPT function calling APIs we’re [we are] able to create a set of Langchain tools that enables agents to directly interact with Bitcoin and the Lightning Network.”
Also Read: Crypto.com Rolls Out ChatGPT Inspired AI User Companion ‘Amy’
At this stage, several from the community believed that AI is nothing less than a boon for crypto. Commenting on the interoperability between AI and BTC for payments, Fedi Developer Kody Low, recently asserted on the Stack Sats podcast,
“AI is one of those things where there is absolutely no better solution anywhere in the world than Bitcoin, and AI companies have not yet solved their monetization problems.”
The Lightning Network’s capacity has noted a swift incline over the past few weeks. Its capacity currently stands around 5,422 BTC. In dollar terms, the figure has spiked from $134.3 million to $167.2 million in just the last three weeks. To contextualize, the lightning network aids users to send and receive Bitcoin faster with lower fees. The current rising capacity connotes more liquidity on the network, making the case for increased adoption.
Also Read: $35 Billion Crypto SPAC Deals Remain ‘Incomplete’