Artificial Intelligence is becoming increasingly popular. Forecasts suggest that the industry will grow by over 33% between 2020 and 2027 and many new sectors will start implementing AI-based solutions that would automate a variety of tasks and introduce a much higher level of efficiency. Today we will take a look at one project that is leveraging the power of both blockchain and AI for cryptocurrency trading.
Q: What are the use cases of AI in trading exactly? What functions can an Artificial Intelligence program fulfill that the currently available technology cannot?
A: While still being a fairly novel concept, AI has found its way in many sectors. Aside from the traditional use cases such as chatbots and other automations, the sectors that rely on big data and its analysis will be the ones to benefit the most from the recent and upcoming advancements in AI.
Trading and investing is one of these sectors. It greatly depends on quantitative analysis and our ability to gather, process and interpret a variety of data. AI has a variety of applications there and can greatly enhance the speed and efficiency of market analysis and order automation.
This is where traditional technology reaches its limits and where AI starts to stretch out the boundaries of the sector. Artificial Intelligence allows us to more efficiently analyze the market sentiment that is influenced by many complex factors beyond the analysis capabilities of what we currently have available as technology.
Q: Can AI algorithms be applied to cryptocurrencies as well?
A: Absolutely. Contrary to the belief of some, the cryptocurrency market is subjective to quantitative analysis, albeit the approach is somewhat different compared to the stock market. However, now with more retail investors coming to the fold, both the stock and cryptocurrency market will become more closely aligned in terms of the driving factors behind them.
This is even more true when we go beyond and start analyzing the market sentiment and the investors’ emotion. It is known that the cryptocurrency market can be impulsive and volatile and this is exactly where AI will come into play.
Q: What do you do at Dohrnii? How do you plan on utilizing AI and implementing it successfully for crypto trading? This is something that has never been done before.
A: With Dohrnii we have created an investment management ecosystem that provides access to some of the most sophisticated trading and investing tools for market analysis. Some of these are already used by large investment corporations and their risk departments and give them a tremendous edge over the majority of the competition. We have been working tirelessly over the last years in adapting these to the subtleties of the cryptocurrency market.
We have implemented a total of 5 main AI modules, 4 of which have their multiple lower-tier AI instances handling individual tasks. The first main module analyzes macroeconomic factors that are correlated to the price of cryptocurrencies. The second AI works closely with the first one in determining emerging trends on the market such as new coins with high potential. The analysis is complex, based on a multitude of factors that cannot be analyzed by traditional automated solutions.
The third and fourth AI modules are focused on the analysis of the market sentiment, investors emotions, and trading patterns. All of these are united by the fifth and final AI which draws the conclusions and models delivered to the traders on the front end. Dohrnii offers a Robo advisor as well, an AI program that helps traders with their portfolio optimization and gives them price predictions and trading signals.
Dohrnii is also offering the first crypto trading academy that offers personalized learning plans to every user based on their current level of knowledge and experience. The resources have been pooled together and created by a team of experts with longstanding experience in trading on both the stock and cryptocurrency markets. Users are rewarded with our native DHN token for advancing their knowledge by completing the learning modules and successfully passing the tests at the end of each one.
Our mission is to provide every trader with the tools and knowledge to become successful on the cryptocurrency market in the long term and to be able to compete with the strongest market players. We believe that this would bring the market closer to its natural equilibrium and will ultimately lead to wider acceptance of cryptocurrencies across the board, as more and more people will add them to their portfolio.
If you are interested in learning more about Dohrnii and how they are planning to change the cryptocurrency landscape, visit their website on https://dohrnii.io/en and read their Whitepaper. They have an active community on Telegram as well where you can discuss their solutions in detail.