Every day, we encounter countless posts claiming massive profits from using AI or advanced bots for crypto trading. These claims often come with promises of insane gains, but the majority are nothing more than scams. They aim to lure users into paying for services or downloading suspicious software that could end up draining your wallet. So, is there any truth to the idea that AI can help you earn money in the world of cryptocurrency?
The Limitations of AI in Trading
Let’s take ChatGPT and other generative models. There’s no denying that AI has been one of the most groundbreaking developments in recent years. However, when it comes to predicting prices, AI has its limitations. These models don’t possess any special powers for forecasting market movements. What they’re truly good at is generating convincing text, even if the information they provide is inaccurate or misleading.
Several media outlets have published articles showcasing ChatGPT’s predictions for Bitcoin and other cryptocurrencies. But can you trust a chatbot to predict Bitcoin’s future price when it can’t even consistently report the current price? In our tests of newer models that can browse the web for information, none were able to provide accurate, up-to-the-minute Bitcoin prices. The difference was often in the range of a thousand dollars or more – a significant discrepancy that would make trading based on such data impossible.
Moreover, the models that don’t have internet access are even more problematic. These versions are stuck with outdated information, often citing old facts such as “Cardano is still in the top 5 cryptocurrencies” or not knowing some coming altogether, like claiming WIF stands for “Wrapped Filecoin.” Relying on these models for trading advice is a recipe for disaster.
Where AI Can Be Useful
So, if AI isn’t great for price prediction, can it be useful in other ways? The answer is yes, but with caveats.
Chatbots like ChatGPT can help you learn about the basics of cryptocurrencies, investment strategies, or technical indicators. They can explain concepts in a way that’s easy to understand, making them valuable tools for beginners. However, it’s essential to remember that these models have a tendency to “hallucinate” — in other words, they sometimes provide confidently incorrect information. A chatbot might tell you a false history about a coin, create fictional investment terms, or even invent technical indicators that don’t exist. For learning, books and verified online sources are still your best bet.
Where ChatGPT might shine is in providing an unbiased, neutral analysis of the content you encounter. The crypto space is filled with hype, shilling, and scams. You can upload an article or whitepaper into ChatGPT and ask it to break down the content for you. It might help you sift through jargon to assess whether something seems credible. You can also use it to discuss your investment strategy, as it may offer alternatives you hadn’t considered. While it won’t replace a financial advisor, it can serve as a sounding board.
AI-Driven Trading Bots: A Different Story
It’s important to note that some trading bots are also referred to as “AI,” but they are a different category altogether. These bots operate based on algorithms designed to execute trades according to specific market conditions. While they may offer some advantages, they also come with their own set of risks and are a subject for a separate article.
Conclusion: Can You Make Millions with AI?
At this point, it’s hard to see how AI — at least in its current state — can help you make millions trading cryptocurrency. The limitations in price prediction, outdated data, and the risk of misinformation make AI more of a tool for learning or assisting in content analysis rather than a reliable trading partner.
In short, AI may be a useful sidekick in your crypto journey, but it won’t be the golden ticket to crypto riches. For now, you’re still better off doing your own research or consulting with human experts.
