Silicon.nyc is always on the lookout for content that is engaging and relevant to our readers, and cryptocurrency trading content seems to be in high demand as of late. We found this article from RoninAi, an upcoming cryptocurrency trading tool that utilizes Ai and machine learning to analyze over 100 factors to determine future cryptocurrency prices. We think this article is very relevant to the interests of our readers, so we decided to share it with the permission of RoninAi.
Cryptocurrency Trading: Ai vs. Bots [How it works]
With buzzwords like Ai and bots spreading around the crypto world like wildfire, it’s become increasingly difficult to tell them apart, which has created a lot of confusion.
So what is the difference? Is there a difference?
In short, there absolutely is a difference. Ai emulates humans in some way or another. When describing machine learning or deep learning, this means the Ai analyzes, interprets, and understands, something standard algorithms and bots cannot do. Bots on the other hand carry out and execute commands, which can be incredibly helpful, especially when combined with Ai.
In crypto trading specifically, algorithmic software and Ai software get used interchangeably. Ai software has the ability to adjust its own algorithms, constantly improving itself and adapting to new data and interpretations, while algorithmic trading software is static following a written procedure which is detrimental in such a volatile market, depending on how it’s used.
These are basic descriptions, for a more in depth understanding we’ll use the RoninAi Crypto Trading Tool software platform as an example.
RoninAi uses a multitude of indicators and points of analysis to give users predictive buy/sell signals based on an amalgamation of historical and live data to fully analyze and predict the cryptocurrency market. It is capable of understanding the difference between a bull and bear market, how to adjust the meaning behind indicators based on the market state, understands the theory behind technical analysis, such as when RSI is reversed, and can even prescribe weight to social sentiment assessing how much each post will actually affect the market, or which news headlines will affect it and by how much.