New version — Flash Trade on swaps.io (demo)
Artificial Intelligence (AI) has gained immense popularity and has become a topic of discussion among tech specialists, academics, venture capitalists, journalists, and even individuals from non-tech backgrounds. The most distinctive feature of AI is its ability to learn and adapt, which makes it useful for a wide range of applications across different industries. The crypto industry is no exception to this trend, as many projects value innovation and are always eager to adopt new technologies. From trading bots to fraud detection, AI can help to enhance the efficiency and security of crypto products and services.
When talking about AI in the crypto industry, trading may become one of the most prevalent applications. AI technology can be highly beneficial for analyzing large amounts of data and predicting future market trends. For instance, trading bots can utilize machine learning algorithms to identify patterns in available market data, examining past and present trends and other available data, including crypto-related news articles or posts of trusted blockchain experts. By building models and predicting possible future price fluctuations, such bots can help traders make more informed decisions and respond quickly to market changes, which might often lead to unfortunate trading results.
AI can also assist in managing and diversifying crypto portfolios. Such tasks can be very demanding for traders who, for example, try to monitor a dozen crypto assets simultaneously. AL-powered software can simplify the process of rebalancing crypto assets, providing traders with additional helpful data like price changes or supply levels.
Moreover, AI bots or other AI-powered software can be programmed to execute trades based on specific conditions, such as reaching a certain price point or a change in market trends. They can also help to manage risk by setting stop-loss orders or using other risk-controlling strategies.
However, it is necessary to note that using AI in trading does not guarantee success, as the outcome can be unpredictable. AI should be used alongside human analysis and judgment (like any other trading tool). It is essential to conduct extensive research and stay up-to-date with the latest advancements in the field before making any investments.
Another promising area of AI development within the cryptocurrency industry is fraud detection. The teams from different dApps, exchanges, and other crypto platforms explore the potential of AI in creating effective monitoring systems to fight against fraud. AI can assist in analyzing transactions and identifying anomalies that may indicate fraudulent activity. For instance, AI can flag frequent large-volume transactions or transactions between two accounts that have already been involved in suspicious activities before. As it can recognize patterns that are not easily noticeable to humans, it can detect suspicious behavior far more quickly.
Another way to combat fraud is by assessing risks associated with individuals and accounts, thus hopefully preventing fraudulent activity altogether. An AI system can analyze transaction history, account longevity, location, and other accessible information to assign a risk score to each transaction and account. This way, all suspicious transactions and accounts can be highlighted for further examination.
Although there are risks associated with using AI in the cryptocurrency industry, such as its reckless use for unsupervised automated trading, its potential benefits are significant. AI has the ability to make crypto trading more accessible and safer, helping traders of all levels of experience make informed decisions and create more profitable portfolios. Additionally, AI can revolutionize how fraudulent activity is handled in the market by simplifying blockchain analysis and providing tools to detect suspicious activity.
The Kinetex team plans to develop AI-related technologies and create solutions for automated market makers, including smart bots that can analyze the market and adapt to changing trends. Such a solution will allow Kinetex resolvers to perform transactions automatically, offering faster execution times and more profitable rates to users.
Currently, the team is focused on developing a new version of the Kinetex dApp called Flash Trade. It will enable users to swap directly with market makers, enjoying protection from MEV attacks and gasless flow.
Kinetex Network: Website | Kinetex dApp
