ChatGPT: Take Your Crypto Trading to the Next Level
Since its release in late 2022, ChatGPT has taken the world by storm with its advanced AI and user interface. In just two months, it has become the fastest platform to reach 100 million users, surpassing TikTok in less than 5 months.
In fact, the technology is so remarkable that many people are worried that it is too efficient and has the potential to replace large numbers of jobs, leaving many to wonder how helpful it really is if fewer people are able to work because of it.
However, it is not all doom and gloom for the new platform; ChatGPT still offers a wide range of applications that can help almost anybody with nearly anything, and crypto trading is not an exception. The AI, which has been trained on billions of pieces of data, has the ability to provide a lot of meaningful assistance when trading and could be quite valuable going forward.
Understanding Cryptocurrency Trading
Before using ChatGPT to trade crypto, investors must learn about basic concepts of trading first not only to avoid any major mistakes, but more importantly, what to ask ChatGPT itself.
ChatGPT is a language model that can provide better assistance with context, so it is important to learn the basics before jumping into the thick of crypto trading.
There are many different ways to begin trading, but we can focus on the 3 general types of trading that are based on the amount of time a position is held:
Day Trading - Short-term trading strategy that involves opening and closing positions on the same day
Swing Trading - Medium-term strategy that is used to find advantageous positions in the market
Position Trading - Long-term strategy that sees a position held for months or even years
When taking a position in a cryptocurrency it is also important to factor in specific influences such as supply & demand to help identify how volatile an asset is. These two indicators can aid investors in determining if a certain cryptocurrency is doing well or not.
Another way to identify price activity is to take a look at economic news and world events. Government announcements like interest rate changes and inflation reports can lead to dramatic changes in cryptocurrencies, so it is always helpful to stay informed.
How ChatGPT Can Help in Crypto Trading
With the basics of trading understood, there are many ways that ChatGPT can help augment a trader’s perspective of the market and inform them of the best decisions possible. Although the AI is not capable of providing real-time market data, it can still make suggestions and educate investors if given a proper perspective of the market.
Similarly, while the language model is unable to assist with hands-on management, it can still provide accurate and relevant information to users that are looking for help with portfolio management and practices to help reduce risk.
Setting up ChatGPT for Crypto Trading
Fortunately, integrating ChatGPT into your trading platforms is not difficult to do with the appropriate computer science knowledge. OpenAI, the company responsible for ChatGPT, provides access to their API on their homepage which can help people take their trading to the next level.
Once the API is linked to a trading platform, it then needs to be configured to make the right decisions by setting up parameters on the types of data that it will provide for the most accurate results.
Finally, it will be helpful to create a notification system so that investors can stay up-to-date with the information that ChatGPT is providing from the platform it’s linked to. This will allow investors to make decisions faster by being alerted to significant price changes.
Using ChatGPT for Trading Decisions
While ChatGPT might be one of the most impactful and revolutionary technologies since smartphones or the internet, it is still far from perfect in its current form. There are many ways that the technology can be used to help inform traders on making the ideal decision, but it still possesses plenty of possibilities to be incorrect.
Just like influencers and Youtube personalities shouldn’t determine every decision an investor makes with their assets, ChatGPT shouldn’t be blindly followed either. There are still many issues that need to be resolved. Just as this article is not meant to give financial advice, neither is ChatGPT. Your risks are your own, especially in web3, and human intuition has no substitute.
