How to Use AI for Crypto Trading (Remove FUD Forever)

by Chris Von Wilpert, BBusMan • Last updated July 23, 2024

Expert Verified by Leandro Langeani, BBA

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In this post I’m going to show you how to use AI for crypto trading in less than 3 minutes, with automated trades that can bring gains like this:

Here are the exact steps to do it:

1. Pick a Strategy On Stoic

Start by visiting Stoic and select the strategy that aligns with your trading goals and risk appetite.

Note: Click on ⓘ to learn more about each strategy. A strategy that boasts a high APY might also come with higher risk.

2. Connect Your Exchange Account

Choose which cryptocurrency exchange you want to connect to Stoic. Options include major exchanges — Binance, Coinbase, and Kucoin.

3. Fill Out Your Exchange Info

Enter your API Key, Secret Key, and Passphrase to securely connect Stoic and your exchange.

4. Choose a Plan

You'll find different plans such as Starter, Plus, and Pro, each offering access to different numbers of strategies and portfolio limits. Decide whether you want to be billed yearly or monthly and select the plan that suits your needs.

Note: Annual plans provide a 50% discount.

5. Allocate Budget From Your Exchange

Decide how much money you want Stoic to trade with based on the strategy you selected in Step 1. Once you've set these amounts, Stoic will start trading for you automatically.

And that’s it! Just like that, you can sit back and let Stoic's AI rack up cash!

Crypto Trade Examples

Here are some examples of the trading strategies I used on Stoic:

Fixed income — for low-risk trading

Meta — for medium-risk trading

Meta long only — for high-risk trading

What is the best AI tool for crypto trading?

The best AI tool for crypto trading that I recommend is Stoic, an advanced and user-friendly platform designed to help both beginners and experienced retail traders navigate the complex world of cryptocurrency markets. By leveraging artificial intelligence, machine learning, and a broad range of performance metrics, Stoic can analyze historical market data, real-time market monitoring, and external signals to identify potential trading opportunities.

One significant advantage of using an AI-powered tool like Stoic in the crypto space is its ability to adapt quickly to changing market conditions. As cryptocurrencies are known for their volatile nature compared to traditional financial markets, having a system capable of identifying trends and making informed decisions based on those fluctuations can significantly improve your overall trading experience.

Crypto exchanges often have varying levels of liquidity or differences in price movements between them. This creates arbitrage opportunities that might be difficult for human traders alone to spot. With tools such as technical analysis algorithms built into platforms like Stoic's Trading terminal or Rebalancing bot features tailored specifically towards day traders' needs — you'll find yourself better equipped than ever before when it comes down to managing risk tolerance while maximizing returns within digital currency markets.

Another essential aspect where artificial intelligence excels over human intervention lies within its ability to not only process vast amounts of information at once but also learn from past experiences and refine strategies to optimize the success rate of future trades.

Is AI crypto trading legit?

Yes, AI crypto trading is legit and has become increasingly popular in recent years. The use of artificial intelligence (AI) and machine learning algorithms in the cryptocurrency market allows traders to analyze vast amounts of data quickly, identify patterns, trends, and potential opportunities that might be difficult for human traders to spot.

Many reputable platforms offer AI-powered trading tools like Stoic or AlgoTradingBots that help both beginners and experienced traders make informed decisions based on real-time market conditions.

However, it's essential to keep in mind that not all AI-based crypto trading solutions are created equal. Some may promise unrealistic returns or employ misleading marketing tactics which could lead inexperienced investors into making poor decisions with their investments. It’s important that you verify the company’s credibility within the industry and check user reviews and testimonials before you commit to an investment.

Are crypto trading bots profitable?

Crypto trading bots can be profitable, but their success largely depends on various factors such as the quality of the bot, its underlying algorithms, market conditions, and the user's trading strategy. Trading bots are automated software programs designed to execute trades based on predefined rules or strategies without human intervention.

One advantage of using crypto trading bots is that they can operate 24/7 in a market that never sleeps. This allows them to take advantage of potential opportunities around-the-clock while minimizing emotional decision-making that's unavoidable with manual trading. Bots also have faster reaction times compared to humans when it comes to executing trades based on real-time data analysis.

However, there are several caveats when considering whether a crypto trading bot will be profitable:

1. Quality and complexity: Not all bots are created equal — some may use too-basic algorithms or outdated strategies which might not yield consistent profits over time. 


2. Market conditions: Crypto markets can be highly volatile and unpredictable; even well-designed bots might struggle during periods of extreme price fluctuations.


3. User input: A trader's ability to choose appropriate settings for their bot (such as risk tolerance levels) plays an essential role in determining profitability.


4. Maintenance and updates: To remain effective against ever-changing market dynamics, traders must continuously monitor their bot's performance metrics and make necessary adjustments accordingly.

Can you use AI to mine crypto?

While AI and machine learning technologies have been primarily used in trading and analyzing market trends, they can also be applied to optimize the mining process of cryptocurrencies. However, it's essential to understand that artificial intelligence (AI) does not directly mine crypto — instead, it helps improve the efficiency of mining operations.

Crypto mining involves solving complex mathematical problems using computational power to validate transactions on a blockchain network. Miners compete against each other for rewards in the form of newly minted coins when they successfully add new blocks containing transaction data onto the chain.

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