Best AI Tools for Crypto Prediction in 2024

Can the Best AI tools for crypto prediction outsmart the market? This guide explores the top AI tools for crypto prediction, including Santiment’s social sentiment analysis and OctoBot Cloud’s bots.

In this article, we will explore the best AI tools for crypto prediction and the advancements made in the field of cryptocurrency prediction using artificial intelligence (AI) and introduce some popular applications in this area.

While predicting cryptocurrency prices with AI may seem impossible to some, research in this area has been ongoing for quite some time. For example, a paper published in the International Journal of Computer Applications in 2015 discussed an intelligent stock market prediction system. This system used the capabilities of neural networks and fuzzy inference systems to extract patterns from nonlinear and chaotic systems.

According to the authors of this study, their system had an error rate of only 1.84% in simulating future stock prices. The researchers believe that by building a strong knowledge base and training our system with a wider range of input data, we can achieve more accurate price predictions.

Best AI Tools for Crypto Prediction

With these advancements in mind, the rest of this article will introduce you to the best tools and software for cryptocurrency prediction using AI. Stay tuned!

How Does Artificial Intelligence Predict Cryptocurrency Prices?

Key Points of this section:

• AI-based cryptocurrency prediction models use ANNs to find patterns in large amounts of data.
• One such model was developed by researchers and published in 2021.
• The model was trained on 80% of historical data and tested on 20%.
• It achieved low MAPE percentages for Bitcoin, Ethereum, and Litecoin.
• The long-term performance of the model remains to be seen.
• The practical applications of AI in cryptocurrency prediction are currently limited.
• There are a number of AI-powered market analysis and prediction tools available.

To find patterns in large amounts of data, researchers often use artificial neural networks (ANNs). This is because doing so manually would be extremely time-consuming. The significant progress made in this field has led some researchers to design models for predicting the future of cryptocurrency using AI.

One such paper was published in 2021 by the Multidisciplinary Digital Publishing Institute, which introduced an AI model for predicting cryptocurrency prices.

According to the authors of this paper, this model can make accurate predictions based on the mean absolute percentage error (MAPE). MAPE is a statistical measure used to evaluate the accuracy of a forecasting model. The researchers of this study reported that their algorithm achieved low MAPE percentages for Bitcoin, Ethereum, and Litecoin.

According to the researchers, 80% of past data (January 2018 to October 2020) was used to train the AI, and 20% of the data (October 2020 to June 2021) was used to test it. It remains to be seen how this model will perform in the long term, especially given the constantly changing market conditions.

Researchers are working hard to improve the accuracy of cryptocurrency analysis with AI, including AI predictions of the crypto market in the new year. However, the practical applications of this technology are currently very limited. Nevertheless, there are a number of AI-powered market analysis and prediction tools available for those interested in trading cryptocurrency with AI, which we will introduce later in this article.

Santiment AI

Santiment is an AI-powered cryptocurrency prediction solution, but it goes beyond simple price predictions. It’s actually an all-in-one market behavior and network intelligence platform specifically designed for cryptocurrencies.

Here’s what Santiment AI offers:

• Social Sentiment Analysis: Santiment uses AI to analyze the sentiment of online discussions about cryptocurrencies, helping you gauge public opinion and identify potential trends.
• On-Chain Analysis: Santiment digs deep into the blockchain, analyzing data like transaction volume, wallet activity, and miner behavior to uncover potential market movements and understand the driving forces behind them.
• Market Data Analysis: Get access to a variety of market data including price charts, technical indicators, and order book data to conduct technical analysis and identify trading opportunities.

Beyond the Data:

While these features are powerful, Santiment goes a step further:

• Contextualize Market Behavior: Santiment’s tools aren’t just about data – they help you identify, contextualize, and ultimately predict market behavior. It helps you understand the actions and motivations of key players in the crypto market.
• Unique Data Sources: Forget relying solely on manipulated pricing data. Santiment uses on-chain data, along with custom social and development information they collect and process. This means you get access to unique metrics unavailable anywhere else.

Overall, Santiment AI empowers traders of all levels with a comprehensive suite of tools to analyze the market, understand key players, and make informed decisions. Remember, no AI tool is a guaranteed crystal ball, so always do your own research before investing.

ChatGPT Trend Master and Crypto Tactics Bots

Both of these bots are provided by OctoBot Cloud, which claims to use ChatGPT to predict cryptocurrency prices.

Trend Master has seen a 0.812% decrease in performance compared to the previous month, but overall it has increased by 26.22% over the past 6 months.

Crypto Tactics has seen a 2.2% decrease compared to the previous month, but overall it has increased by 26.12% over the past 6 months.

It’s important to note that these are just two examples of AI-powered cryptocurrency prediction tools. There are many other tools available, and their performance can vary widely. It’s important to do your own research and choose a tool that fits your specific needs and goals.

KepingAI Long Short TF

The next bot designed for AI-powered cryptocurrency analysis and price prediction is called KepingAI Long Short TF Free. However, there is limited information available about its inner workings. The website only mentions that it utilizes artificial intelligence, but provides no further details on its specific algorithms or data sources.

Furthermore, the website lacks any historical performance data, making it difficult to assess the bot’s reliability and accuracy.

PionexGPT

PionexGPT leverages artificial intelligence to create custom TradingView Pine scripts that can be integrated with Pionex bots. In other words, this platform uses AI to generate traditional trading bots.

Here’s how it works:

1. You provide PionexGPT with information about your trading goals, risk tolerance, and market conditions.
2. The AI then generates a custom Pine script based on your inputs.
3. You can then backtest the script and adjust it as needed.
4. Once you’re satisfied with the script, you can integrate it with a Pionex bot to automate your trading.

CryptoHopper

CryptoHopper uses a proprietary AI that analyzes all of the strategies you provide it with and selects the best one for you. The system backtests multiple strategies simultaneously. The AI then ranks all of these strategies for all of the active markets that the user is involved in, and according to the system’s designers, selects the best option for the current market.

Here are some of the key features of CryptoHopper:

• AI-powered strategy selection: CryptoHopper’s AI takes the guesswork out of choosing a trading strategy. It analyzes your goals, risk tolerance, and market conditions to select the best strategy for you.
• Backtesting and optimization: CryptoHopper allows you to backtest and optimize your trading strategies before you deploy them in real time. This helps you to identify potential risks and improve your chances of success.
• Automated trading: CryptoHopper can automate your trading so that you don’t have to constantly monitor the markets. This can free up your time and allow you to focus on other aspects of your life.

Can AI-powered Cryptocurrency Prediction Be a Reliable Solution?

Key Points of this section:

• AI-powered crypto prediction tools are still in their early stages of development and should be used with caution.
• There is a risk of fraud associated with AI-powered crypto trading bots.
• AI can be a valuable tool for financial experts, but it cannot replace human judgment.

Despite advancements in AI technology, users should exercise caution when using AI-powered crypto analysis tools and apps. Earlier this year, the U.S. Commodity Futures Trading Commission (CFTC) warned users that AI-designed crypto trading bots were a popular method for fraudulent schemes. According to the CFTC, AI has unfortunately become a new tool for scamming unsuspecting investors.

Some AI experts are also skeptical about AI-powered crypto prediction tools. Last fall, Lawrence Moroney, Google’s AI director, stated that the potential applications of this technology remain limited.

Moroney believes that training AI models solely on data from reputable exchanges and successful transactions can yield more reliable results, but predicting the future is impossible. There have been years of attempts to conduct such analysis using AI and traditional data science, but no one has been able to accurately predict prices.

Moroney explains that if many people use these models simultaneously, their accuracy decreases over time because the model itself affects market movements. He says, “I don’t believe in the future of trading bots in this way, and I’m worried that if we have a million bots all working this way, they’ll affect market movements.”

Moroney suggests that instead of replacing financial experts with AI, this technology can enhance their productivity by extracting meaningful information from large datasets. Similar to how spreadsheet software didn’t replace traditional accountants, it augmented their capabilities.

How to Choose the Best AI-Powered Cryptocurrency Analysis Solutions

Key Points of this section:

• AI-powered cryptocurrency analysis tools can be valuable for traders, but they should not be used as the sole basis for investment decisions.
• There is a growing trend of hedge funds using AI to improve their investment performance.
• There are a number of AI-powered hedge funds that operate entirely on algorithms.
• Numerai is an AI-based hedge fund that has revolutionized the industry by holding competitions to discover new investment strategies.
• When choosing an AI-powered cryptocurrency analysis solution, it’s important to consider the following factors: 1. The track record of the tool or platform, 2. The underlying technology and methodology used, 3. The cost of the tool or platform, 4. The level of support and documentation available.

As experts have stated, accurately predicting cryptocurrency prices with AI is not possible. However, a good trading bot does not necessarily need to predict the future. In fact, successful traders are those who make more profits than losses. This is achieved by managing risk, minimizing losses from unsuccessful trades, and maximizing profits from successful trades. Some traders can even be profitable even when most of their trades are unsuccessful, because they use effective strategies.

Therefore, if an AI performs well, there is a chance that it will be very profitable from time to time. However, since the owners of these software can make profits without sharing them with others, there is very little incentive for them to offer them to the market.

In 2019, hedge funds began integrating AI into their operations. According to a report by Bank of New York Mellon at the time, “a number of hedge funds are using AI to analyze large data sets, predict supply and demand volatility, and predict market changes for asset allocation.“

As experts have pointed out, these tools are designed to help humans rather than replace them. They assist investment managers and their teams, and more innovative solutions have also been explored.

In recent years, a particular group of hedge funds have emerged that operate entirely on AI and machine learning algorithms, including Aidiyia Holdings, Cerebellum Capital, and others.

Numerai, one of the most well-known AI-based hedge funds, has revolutionized the business model of these funds by holding competitions between AI experts, mathematicians, and data scientists to discover new investment strategies.

The company’s website features a leaderboard that shows the performance of data scientists and their models. According to this information, the average one-year return of these models is 40.18%.