Can AI Really Outperform a Veteran Crypto Trader? Let’s Break It Down
In crypto trading, AI bots are making million-dollar trades within just a matter of milliseconds. This raises the question: can they beat a seasonal crypto trader or not?
So, in this article, we’re going to compare how AI and veteran crypto traders perform in the real world. We’ll look at their strengths and weaknesses, and then compare the two to understand what the future of trading looks like.
Later, we’ll look into how AlgosOne, a relatively new trade automation bot, is successfully combining the best of both worlds and can give consistent, risk-free profits to its users.
Understanding the Players: Difference Between AI and Veteran Crypto Trader
Here’s the significant difference between:
A. What is an AI Crypto Trading Bot?
An AI crypto trading bot uses algorithms that are trained on historical trading data, which allows it to grab extensive market knowledge and apply it in real-time. A significant advantage of AI crypto trading bots is that they can operate 24/7 and trade whenever they find an opportunity.
B. Who is a Veteran Crypto Trader?
On the other hand, a veteran crypto trader is someone who has experience of 5 years or more in trading markets. They generally rely on extensive technical and fundamental analysis to execute a trade. They have good human intuition and don’t let their emotions get the best of them.
Veteran traders, having survived multiple market crashes, possess the ability to interpret news and understand the market’s direction. Their judgment is the best tool they have at their disposal.
Head-to-Head Comparison: AI Crypto Trading Bot Vs. A Veteran Crypto Trader
The following is a head-to-head comparison between AI & veteran crypto trader:
- Speed & Efficiency
AI leads in speed & efficiency by executing trades in milliseconds and scanning thousands of coins to identify potential opportunities. Humans can be strategic, but they’re slow, which is a significant disadvantage in the cryptocurrency market.
- Emotional Bias
Again, AI wins here as well because it doesn’t trade based on fear or greed but only based on a predetermined set of strategies.
- Market Conditions
When it comes to market conditions, AI and manual traders both have their strengths and weaknesses. AI performs well in stable and trending markets, whereas humans tend to perform better in unpredictable/black swan market events.
- Learning and Evolution
Lastly, when it comes to consistent learning and evolution, human traders again take the lead because with every trade, a veteran trader gains wisdom and improves.
Real-World Examples of AI vs. Veteran Crypto Trader
Let’s examine real-world examples where AI and veteran crypto traders outperform.
- When AI Outperforms Humans
AI outperforms during arbitrage opportunities. It also outperforms during high-frequency short-term scalping.
- When Humans Outperform AI
Humans outperform when there’s abrupt market news like a Tweet made by Elon Musk or someone famous. Or at times when a meme coin community decides to pump a coin.
Final Outcome: Pros & Cons of AI vs. Veteran Crypto Traders
It’s clear that both AI and human crypto traders have their pros and cons, and both have their limitations.
AI performs better when it comes to speed, overcoming emotions, and remaining consistent. Humans perform better when there’s a news reaction. They are also highly creative and adaptable, and understand market intuition.
Can AI Improve Veteran Crypto Traders
Depending on the type of AI trading bot a trader uses, AI can help improve veteran crypto traders by reducing their research time and executing trades more efficiently. AI can also help with better market prediction and assessment.
However, to use AI effectively, one must ensure they’re using the right AI for the right tasks, as there are several AI bots available, each with its own strengths. Moreover, AI can substantially increase the trading cost because the best bots can be costly and require consistent upgrades.
AlgosOne Hybrid Model – The Best of Both Worlds
Let’s face it. Given the complex nature of markets, it’s clear that neither AI nor veteran crypto traders can consistently deliver high returns. Both have their shortcomings. This is where AlgosOne comes in.
AlgosOne is a cutting-edge AI-powered trade automation bot that executes trades automatically, eliminating the need for human intervention! It helps grow your portfolio by using what’s called a Hybrid Trade Model, in which it combines the best of both worlds: an AI bot that consistently improves itself and a team of financial experts that monitor the AI’s activity 24/7.
Here’s how AlgosOne can give consistent risk-free returns:
1. Scans the Market
Firstly, AlgosOne’s trading bot scans the market 24/7 and analyzes vast amounts of data from various sources, including news, social media, earnings calls, economic data (such as GDP growth, inflation, and consumer sentiment), whale movement, network activity, and geopolitical events.
2. Finds Opportunity
The bot then shortlists high-potential cryptocurrencies and uses numerous technical indicators, such as RSI, MACD, Support/Resistance levels, and Candlesticks, to spot the right time to execute a trade.
3. Human Oversight
AlgosOne’s team of veteran crypto traders then monitors the trading bot’s activity. After cross-checking to ensure everything is moving in the right direction, they give the bot the go-ahead. Once that’s approved, the trading bot executes the trade with an over 80% trade success ratio.
If experts find that there’s something wrong or if it’s too risky, they do not approve that trade and let the trading bot find another trade with a higher success ratio.
4. Consistent Strategy Adjustment
AlgosOne’s bot consistently updates itself by following what top traders are doing and what type of trades they’re making. Human traders first test those updated strategies rigorously, and once there’s 100% surety of their success, then they allow the bot to update itself.
5. Human Trades
At times when financial experts believe they can make better trades because of market conditions, they take the upper hand by using their experience and intuition to make better calls.
Conclusion
AI crypto trading is fast and data-driven. Veteran crypto traders have better intuition and wisdom. However, neither gives a 100% solution. AlgosOne, on the other hand, understands the shortcomings and uses a hybrid model that allows it to provide the best of both worlds: AI’s fast and data-driven approach, and human intuition and wisdom.
You can also take advantage of AlgosOne’s hybrid approach by signing up today!
