Cryptocurrency Trading: Ai vs. Bots [How it works]

crypto trading bot ai


With buzzwords like Ai and bots spreading around the crypto world like wildfire, it’s become increasingly difficult to tell them apart, which has created a lot of confusion.

So what is the difference? Is there a difference?

In short, there absolutely is a difference. Ai emulates humans in some way or another. When describing machine learning or deep learning, this means the Ai analyzes, interprets, and understands, something standard algorithms and bots cannot do. Bots on the other hand carry out and execute commands, which can be incredibly helpful, especially when combined with Ai.

In crypto trading specifically, algorithmic software and Ai software get used interchangeably. Ai software has the ability to adjust its own algorithms, constantly improving itself and adapting to new data and interpretations, while algorithmic trading software is static following a written procedure which is detrimental in such a volatile market, depending on how it’s used.


ai crypto trading software


These are basic descriptions, for a more in depth understanding we’ll use the RoninAi Crypto Trading Tool software platform as an example.

RoninAi uses a multitude of indicators and points of analysis to give users predictive buy/sell signals based on an amalgamation of historical and live data to fully analyze and predict the cryptocurrency market. It is capable of understanding the difference between a bull and bear market, how to adjust the meaning behind indicators based on the market state, understands the theory behind technical analysis, such as when RSI is reversed, and can even prescribe weight to social sentiment assessing how much each post will actually affect the market, or which news headlines will affect it and by how much.


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Algorithmic trading intended for the same purpose would quantify the data, but be unable to interpret it. So for social media, it could tell you whether it’s bullish or bearish, but as studies have shown, the “silent majority” or those who post less frequently with more genuine opinions actually affect the market more than people who post often in an attempt to influence it. Algorithmic trading is static and unable to adjust to market changes. This is what most “Ai” refers to, a combination of algorithmic trading with bots that execute the static commands.

Ai on the other will adjust its own algorithms to always be effective. The sky truly is the limit for artificial intelligence and it’s applications in the space of cryptocurrency trading.

“By far the greatest danger of Artificial Intelligence is that people conclude too early that they understand it.”

– Eliezer Yudkowsky, Machine Intelligence Research Institute

If you were to add bots to the RoninAi software platform, it would be capable of executing your trades for you, based on adaptable RoninAi signals. This is really an amazing layer that is in the works for RoninAi in the future as an optional upgrade.

Related article: RoninAi Updates: A Look Inside Cutting Edge Ai Developments