How to Utilize ChatGPT to Assist You When Trading Crypto

How to Utilize ChatGPT to Assist You When Trading Crypto

Time Stamp: September 4, 2023 6:02 AM
Source Node: 2252687
  • For crypto traders who do not want to use trading bots but still want to enjoy the benefits of AI tools, you can use ChatGPT to trade crypto. 
  • ChatGPT can definitely answer questions about the crypto market. It could supply information about crypto prices, trading volumes, supplies, price changes, and other trends.
  • But bear in mind that ChatGPT is just an AI tool and does not have a human experience, and possesses a different level of judgment compared to crypto traders, so it could miss some important details and context when giving forecasts.

Between 2022 and 2023, artificial intelligence and its generative tools were a hot topic. And of course, the crypto community was also active in discussing the advantages of these AI tools in the industry. 

(Read our articles about AI and helpful tools for your daily life here.)

Decentralization and Centralization

Given that the community lives in a decentralized world of blockchain technology, it is quite surprising that many are interested in AI technology. For Advance AI’s Michael Calma, during the February edition of monthly meet-up Bitcoin, Beer, & Bitstories, while web3’s goal is to be decentralized, AI aims to be centralized. 

What Are Trading Bots and How Do They Fit In?

Due to the community’s interest, trading bots have appeared, representing one of the best advantages that AI has brought to the industry. Basically, a trading bot is an AI tool that uses algorithms to execute trades and make data-based decisions on behalf of its user. 

(Read more: Binance: Interest in Telegram Bots Surges Due to Skyrocketing Token Prices)

However, for crypto traders who do not want to use trading bots but still want to enjoy the benefits of AI tools, this discussion might be for you. It can be more fulfilling to enjoy the gains of your own hard work by trading yourself, rather than letting a bot trade for you. 

So instead of having bots trade for you, why not utilize ChatGPT’s intelligence and learning skills to help make your decisions firmer and your portfolio management more effective?

Explore how ChatGPT can assist you in making informed trading decisions and optimizing your crypto portfolio.

Note: BitPinas articles and its external content are not financial advice and must not be misconstrued as one. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond. Readers are encouraged to do their own research.

How to Use ChatGPT to Trade Crypto

Many of us know that ChatGPT can create human-like responses, in our mother tongue, because it is a chatbot that is powered by a large language model. But ChatGPT is also a generative AI tool, which means that it can create new content based on the data that it has learned. This is how ChatGPT can assist its users in their decision-making as a crypto trader. 

(Read more: Beginner’s Guide to ChatGPT: Learn How to Use AI Chat)

Secondly, this AI tool could also provide traders with a crypto asset’s history. It could supply historical data about the token’s price, the date and factors when it reached its all-time high, and the pattern of its price movement. Through this, traders can make more accurate predictions, as we all know that the crypto market is cyclical. 

Lastly, ChatGPT, which is one of the most advanced chatbots to exist, can offer forecasts and opinions. ChatGPT can give advice based on the current news and regulations that affect the crypto market. It can also supply the future behavior of a coin or token. 

Optimizing Your Crypto Portfolio with ChatGPT

Due to its ability to assist its users in their decision-making as a crypto trader, ChatGPT could indeed help traders manage the risks they could encounter. 

Traders can also inform ChatGPT about their long-term plans, in this way, the chatbot could supply a list of portfolio rules that reflect their risk appetite trading goals, like asset allocation, portfolio diversification, and investment management. 

To use ChatGPT to trade crypto, users could also do the research for its users, so traders could know the most effective strategies and avoid repeating past mistakes. 

(Read more: Boost Your Crypto Portfolio: How to Earn Free Crypto Through Airdrops in 2023)

Limitations and Risks: Understanding the Role of AI in Crypto Trading

As mentioned in our past articles, ChatGPT sometimes produces inaccurate and misleading information, which could cause poor predictions and may harm the trader—-mentally and financially. 

(Read our articles about ChatGPT, the first known chatbot to exist, here.)

Also, take note that ChatGPT is trained based on the data available over the web, so it may generate answers and opinions that could be inappropriate, like outdated data or biased statements against a certain race, country, or even asset. 

Trading-wise, while you can use ChatGPT to trade crypto, it is still just an AI tool. It lacks human experience and possesses a different level of judgment compared to crypto traders, so it might miss important details and context when providing forecasts.

Thus, it should be emphasized that you should only use ChatGPT as a tool and not as a substitute for human judgment, and most importantly, it is not a trading guru.

So use ChatGPT to trade crypto with caution and always do your own research before making any trading decisions. 

This article is published on BitPinas: How to Use ChatGPT to Trade Crypto | AI Crypto Trading

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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