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Artificial intelligence (AI) and cryptocurrency are two technologies in a phase of rapid innovation. But how do they connect? That’s where AI crypto comes into play, and it’s quite an interesting story.
It’s not just one thing, though; it’s a whole ecosystem — and one you might not want to overlook. Some interesting and possibly revolutionary use cases emerge when AI meets blockchain technology.
Today, we’ll cover how crypto and AI intertwine, what makes this connection so special, and what you need to know to better understand this emerging technology sector.
First, what is AI crypto?
It might sound like a Frankenstein creation of trending buzzwords, but underneath the hype are some innovative approaches that could set the stage for the next chapter of both the AI and crypto industries.
There is no single AI crypto project. Rather, there are hundreds of projects across dozens of blockchain networks.
Even so, there are two main angles that AI crypto projects take:
Why connect crypto with AI?
There are a variety of benefits that each technology gains from the other. For example, when you create a system of storing AI training data or model parameters on a blockchain, you can increase overall data integrity and transparency. It’s all there in public. Anyone can validate or learn more about how a model is trained or what data it uses.
Data transparency is a big problem for AI models and the products built on them.
By adding data to the blockchain, the lineage of that data, meaning where it’s coming from, is hyper-transparent. This is especially important for businesses trying to stay compliant with emerging regulations like the European Union’s AI Act* (learn more at artificialintelligenceact.eu).
This is only the tip of the iceberg. There’s also:
AI crypto is much more than a few use cases; it’s a brand new lens to look at virtually every aspect of both industries.
So, how are people using AI in the crypto space?
Algorithmic trading uses AI and machine learning models using a vast amount of market data to predict trends. Additionally, these AI tools offer predictive forecasting, helping users identify opportunities.
AI can also assist with portfolio management and even analyze sentiment across news and social media.
It certainly won’t completely replace traditional investing intuition, but it will certainly enhance it.
Of course, with any trading or investment decisions, always do your own research or consult with a financial advisor.
There’s also AI that can be used to help detect fraud.
AI models can scan the blockchain to identify unusual transaction patterns that might indicate hacks, scams, or money laundering. It can also be used to audit smart contract platforms or enhance Know-Your-Customer and Anti-Money Laundering processes, helping crypto businesses operate more securely and efficiently.
Of course, these are just a few examples. There are many more use cases, with even more on the horizon.
Make no mistake, the AI crypto space is dynamic and on the bleeding edge of technological innovation. Even so, it’s hard not to see why so many are excited about these developments.
One sector in the emerging AI crypto ecosystem is AI agents* (learn more about AI agents at ibm.com).
Basically, AI agents are software programs designed to interact with their environment. They can learn and make decisions about the world around them. More importantly, they can take autonomous action.
Crypto makes the perfect addition to these AI agents.
Why? Well, first off, it adds a way to transact. AI agents can interact with the blockchain, smart contracts, and other platforms seamlessly. They can trade, manage portfolios, and accomplish other tasks, all without human interaction.
Unlike bots, which follow strict rules, AI agents can adapt and learn on their own.
But we’re still early. AI agents, and AI programs in general, are still very prone to making mistakes. While these innovations certainly have the potential to disrupt how we navigate the crypto world, users need to keep a keen eye on how these technologies operate to mitigate potential risks and mistakes.
So, how can you get started in the AI crypto space?
While it’s true that this sector of the greater crypto and AI industries is very new, there’s a lot happening, with established projects and products leading the charge.
The two best blockchains to explore are Ethereum (ETH) and Solana (SOL).
Each has a growing ecosystem of AI projects. You can find everything from decentralized AI training marketplaces to a whole variety of AI agents that do everything from managing your crypto portfolio to offering AI-driven insights based on market data.
So, get exploring and find the right projects that fit your needs and goals.
Ready to get started in AI crypto? Bitcoin Depot is here to help. Your first step is to get your hands on the native cryptocurrency for the blockchain ecosystem you want to explore. For instance, if you want to explore Ethereum’s AI sector, you’ll need ETH. The same goes for Solana.
That’s where we come in.
With our buy online service, you can purchase many popular crypto options with a debit card, credit card, Apple Pay, or Google Pay.
Explore our buy online service today.*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.