Can ChatGPT and Other AI Technologies Take The Role of Specialist Crypto Trading Bots?

Can ChatGPT, an AI product created by OpenAI, change the way Bitcoin trading is done with its sophisticated language model and analytical abilities?

Source: cryptokopen.nl

Users of Twitter, Instagram, and TikTok may see engaging content as they read through their feeds, reels, and stories. Many of these blogs make the assertion that, with the correct instructions, ChatGPT can make anyone into a trading genius. Users are learning more about ChatGPT, an artificial intelligence (AI) phenomena that is upending society, technology, money, and perhaps our very existence, out of curiosity.

Trading Cryptocurrencies Automatically With ChatGPT

ChatGPT is a language model driven by cutting-edge natural language processing (NLP) technology, not just another tool. While its use in bitcoin trading is similarly appealing, its adaptability also extends to language-based jobs, analytics, and content. By utilizing ChatGPT's data analysis and code generating skills, cryptocurrency traders may reach a new degree of automation. It's simple to picture a situation in which traders make use of ChatGPT by asking it to write code for specialized crypto trading bots. These bots can automate the trading process, saving time and effort because they are guided by predetermined parameters.

ChatGPT: As Cryptocurrency Trading Tool

For traders, ChatGPT has opened new doors by giving them a potent instrument to alter their trading operations and methods. But it's important to proceed with caution and properly test the generated bots before using them in real-time trading scenarios.

Understanding that ChatGPT serves as the foundational technology for these customized bots is crucial. Prudent traders are aware of the value of carrying out comprehensive testing and validation to guarantee the efficacy and dependability of such AI-powered solutions, despite the fact that it has impressive analytical capabilities and the capacity to produce code. Despite the fact that ChatGPT is capable of doing financial risk assessments in addition to active trading, it still needs improvement to rival specialized teams. The capacity of ChatGPT to keep track of the risk of ERC-20 tokens before listing was recently put to the test by the American cryptocurrency exchange. 

The outcomes were contrasted with risk evaluations carried out by the global exchange security team, which makes use of specialist automated technologies. The group reached 20 random smart contract risk evaluations using internal tools between ChatGPT and its automatic security check. In 12 of the situations, ChatGPT agreed with exchange evaluations. The remaining eight occurrences, however, involved ChatGPT misclassifying a high-risk asset as low-risk, which the exchange deemed a serious error because underestimating risk is worse than overestimating it.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.