The intersection of blockchain and artificial intelligence (AI) is rapidly evolving as crypto exchanges strive to innovate. Earlier this year, popular platforms like Binance unveiled an AI-backed nonfungible tokens (NFTs) generator for authenticated users, while others embarked on similar endeavors.
In contrast, Bitget, a notable cryptocurrency exchange, has set its eyes on AI-trading bots and launched a series of them since June. These bots aim to synergize blockchain technologies with AI to offer improved trading experiences.
In an interview with Cointelegraph, Gracy Chen, Bitget’s managing director, elucidated the key differences between a regular commodities trading algorithm and Bitget’s new Commodities Trading Advisor (CTA) AI bot. According to Chen, this AI bot focuses on MACD (moving average convergence divergence) and Boll (Bollinger band) indicator strategies, making trading process more intuitive for the users by eliminating the requirement of specifying complex parameters.
However, as with any piece of technology, AI has its perceived difficulties. One arguable shortcoming of AI models is their unpredictability during sudden market upheavals, such as a significant price increase or decrease. Chen acknowledged this challenge but assured that Bitget is taking measures to protect users. One such method involves using large K-line (candlestick) time periods for calculating indicators to smooth out short-term market instabilities. Additionally, they offer users options for stop profit and stop loss to safeguard their interests.
An intriguing aspect of the CTA AI bot is its application in the crypto market, which is typified by its high volatility. By capturing market variations through the relationship between volume and price, the bot appears to work more efficiently in volatile markets, thereby making it particularly advantageous in the crypto space.
While AI-powered trading appears to streamline the trading experience, skeptics will question its ultimate efficiency against the more traditional human-driven or algorithmic methods. Addressing this, Chen stated that AI strategies assist users in forming trading methods in a more intuitive way compared to algorithms, which often involve arduous parameters.
In short, as the AI evolution continues, applications like Bitget’s CTA AI bot are promising advancements that could revolutionize the trading experience. However, whether these technological advances can live up to expectations and actually outperform traditional methods remains to be seen.
Source: Cointelegraph
